Top 5 Grants for Small Businesses in 2021
Starting and sustaining a small business can be challenging, especially during a pandemic when many businesses are struggling to stay afloat. Fortunately, there are several grant programs available to small business owners that can help them access funding and resources to support their ventures. In this article, we’ll explore the top 5 grants for small businesses in 2021.
1. Paycheck Protection Program (PPP) Loan
The Paycheck Protection Program (PPP) Loan has been a lifesaver for many small businesses affected by the COVID-19 pandemic. The PPP is a forgivable loan program designed to help businesses keep their employees on their payroll. To qualify for the PPP Loan, businesses must have fewer than 500 employees, and the loan amount is based on the business’s payroll costs. The loan can be forgiven if the business uses at least 60% of the funds for payroll expenses and meets other requirements.
2. Economic Injury Disaster Loan (EIDL)
The Economic Injury Disaster Loan (EIDL) program is another option for small businesses impacted by COVID-19. The EIDL provides low-interest loans up to $500,000 to businesses that have suffered a substantial economic injury. These loans can be used to cover expenses that the business would have been able to meet had the disaster not occurred, such as payroll, rent, and utilities.
3. Small Business Innovation Research (SBIR) Program
The Small Business Innovation Research (SBIR) program is a government-funded grant program designed to support small businesses engaged in research and development (R&D). The SBIR program provides funding to support the development of new technologies and innovative products. This can include funding for prototyping, testing, and commercialization.
4. Small Business Technology Transfer (STTR) Program
Like the SBIR program, the Small Business Technology Transfer (STTR) program is designed to support small businesses in R&D efforts. However, unlike the SBIR program, the STTR program requires small businesses to partner with a non-profit research institution, such as a university or federal laboratory. The STTR program provides funding for joint research and development projects, allowing small businesses to access the resources and expertise of research institutions.
5. USDA Rural Business Development Grants
The USDA Rural Business Development Grants are designed to help small businesses located in rural areas access resources and support. These grants can be used to fund a range of activities, including business planning and feasibility studies, marketing and promotion, training, and technical assistance. Additionally, the grants can help fund the construction, improvement, or acquisition of buildings and facilities that support business development.
Conclusion
Small businesses are the backbone of the economy, and ensuring their success is essential for economic growth and job creation. Fortunately, there are several grant programs available to small business owners that can help them access funding and resources to grow and sustain their ventures. The top 5 grants for small businesses in 2021 are the Paycheck Protection Program (PPP) Loan, Economic Injury Disaster Loan (EIDL), Small Business Innovation Research (SBIR) Program, Small Business Technology Transfer (STTR) Program, and USDA Rural Business Development Grants. By taking advantage of these programs, small businesses can gain the support they need to thrive.
