5 Best Grants for Small Businesses in 2021: A Comprehensive Guide
As small businesses continue to face unprecedented challenges due to the pandemic, securing finances to keep afloat is more crucial than ever. Fortunately, there are various grants available for small businesses that offer financial support during these tough times. In this article, we’ll be discussing the five best grants for small businesses in 2021 that can provide the much-needed assistance to help you grow and sustain your business.
1. Economic Injury Disaster Loan (EIDL)
The Economic Injury Disaster Loan (EIDL) provides businesses with low-interest loans of up to $2 million to help them recover from economic losses caused by COVID-19. The loan can be used for payroll, rent, utilities, and other business expenses. Additionally, small businesses that apply for the EIDL can receive up to a $10,000 grant that does not require repayment.
2. Shuttered Venue Operators Grant (SVOG)
The Shuttered Venue Operators Grant (SVOG) is a grant program aimed at live venue operators, theatrical producers, and performing arts organizations that have been severely affected by the pandemic. The grant amount is up to 50% of the gross earned revenue of the business, with a maximum of $10 million per eligible entity.
3. Paycheck Protection Program (PPP)
The Paycheck Protection Program (PPP) is another COVID-19 relief program that offers forgivable loans for small businesses. The loan can be used for payroll costs, rent, mortgage interest, utilities, and some other eligible expenses. The loan amount that can be forgiven is up to 100% of the loan principal, provided that the business uses at least 60% of the loan towards payroll expenses.
4. Main Street Lending Program
The Main Street Lending Program is a lending program aimed at small and medium-sized businesses that have been financially affected by the pandemic. The program offers five-year loans ranging from $250,000 to $5 million, with an interest rate of 3%. The loan can be used for payroll, rent, utilities, and other eligible expenses.
5. Community Development Block Grant (CDBG)
The Community Development Block Grant (CDBG) is a grant program that provides funding to state and local governments to help support small businesses and community development initiatives. The grant can be used to fund small business loans, help with job creation, and improve local infrastructure.
Conclusion
In summary, these grants provide an excellent opportunity for small businesses to get the assistance they need to recover and grow during these challenging times. It’s essential to research the eligibility requirements and application deadlines for each grant thoroughly. With this comprehensive guide, you’re now equipped with the information you need to apply for the best grants for small businesses in 2021.
