In conjunction with National Small Business Week in May, Benefits.gov wants to assist budding entrepreneurs and small business owners to learn more about their options when growing a business. According to the U.S. Small Business Administration (SBA), more than half of Americans either own or work for a small business and are responsible for creating every two out of three new jobs in the U.S. each year.
The SBA offers several federal programs to lessen the difficulties of funding a small business. These programs come in three forms: grants, loans, and venture capital.
Grants
Federal grants are awards of financial assistance to an individual or organization. Grants are used to carry out a government-authorized purpose and are not provided for beginning or expanding a business. Small business are offed grants only for specialized fields, such as non-profits, educational institutions, and those in state or local governments for economic development. These grants are not considered “free money” and usually require the recipient to match funds or combine the grant with other forms of financing, such as a loan. For more information, please visit the SBA’s Grant Programs, or visit the federal government's official Grants Website.
Loans
Loans are different than grants because they are awarded to an individual or organization as a personal benefit or assistance. It is important to note that you are required to pay back a loan, with interest. The SBA Loan Programs consist of various loan categories such as starting and expanding business, disaster, export assistance, veteran/military community, and special purpose loans. The loans offered cater to many different scenarios a business may experience. For example, the Microloan Program provides very small loans to start-ups, newly-established, or growing small business concerns and certain not-for-profit childcare centers. To explore additional types of loan offers, visit GovLoans.gov. To view additional SBA programs, browse our Loans Category.
Venture Capital
Venture Capital, also known as investment capital, is a type of financing that addresses the funding needs of entrepreneurial companies that cannot seek funding from more traditional sources. These investments are typically for a longer term, and the investors actively monitor the business because their money is at stake. If this is something you or your business can benefit from, visit the SBA’s Venture Capital Page for additional information.
Now that we have covered the basics behind government financial assistance for small businesses, Benefits.gov hopes to further assist you with information you may need to successfully grow your business. Start by using the Benefit Finder to access program information for benefits you may be eligible to receive.
