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The government and other organizations offer small business grants as monetary gifts bestowed on small companies. While the federal government doesn't offer many direct business grants, several states have endowments available to grant applicants. Private and philanthropic organizations also offer a variety of grants.
Many types of grants exist to help different kinds of businesses or to help with specific business needs. Some grants are for women or minority-owned small businesses, while other grants may help a company become handicap accessible. Small businesses focusing on education or science may receive grants because of contributions to society. The website Business.com gives business owners some ideas of how to obtain grants and use business grant money.
Two kinds of grants are endowed by the federal government and granted specifically to small businesses engaged in in scientific research and development, also known as R&D.
R&D grants include the Small Business Innovation Research program and the Small Business Technology Transfer program. To qualify for these small business grants, companies must meet federal R&D goals and develop products with a high level of potential commercialization.
Other types of grants include venture capital and low-interest loans. Generally, grants offer otherwise unattainable financial opportunities to small businesses and small business owners.
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