Back during the 2012 presidential election, there was an argument between the two parties about, “Takers vs. Makers”. As a person who believes that sometimes people some need help to pull themselves up by the bootstrap, I could never really buy into that dichotomy. We give people loans and grants to go to college so they can become productive members of society right? Why shouldn’t the government do the same for small businesses? After all, entrepreneurs don’t start new enterprises because they want to suckle at the government’s teat forever. They want their companies to grow, make money, become profitable and hopefully, make the owners rich!
In so doing, these businesses return enormous benefits back to government. In a piece by Amy Cortese, Kyle Kimball, president of New York’s Economic Development Corporation, pointed out that businesses that get help from government “repay the…investment many times over in creating jobs, paying taxes and continuing to perform as cornerstones of their communities”. Because of this, many local governments around the country provide grants – i.e. free money – to local businesses as a “strategic tool for spurring economic growth”.
Here is a list of the many grant programs Cortese highlights in her piece:
Federal Grants:
Grants.gov: This is “a centralized site that allows owners to search and apply for more than 1,000 federal programs. The federal government last year allocated more than $500 billion to grants.”
BUT
“Just 5 percent, or $26 billion, of federal grant funds went directly to for-profit businesses...”
Some State Run Programs Include:
New York
Fashion Manufacturing Initiative: “offers matching financial grants to local manufacturers looking to upgrade their machinery, expand their services or train workers. The program, run by the New York City Economic Development Corporation and the Council of Fashion Designers of America…”.
Industrial Growth Initiative: For New York City businesses. This program entails a “two-stage process that requires businesses to attend a growth workshop and then apply for a more in-depth workshop series covering topics like human resources and marketing. The program culminates with a business plan competition, where participants put what they have learned to work and create expansion plans to guide their next stage of growth. The plans are pitched to an audience of judges and business leaders, and three winners split a $150,000 prize.”
Florida
Mom and Pop Small Business Grant Program: for businesses in southern Florida, Miami-Dade County. This program “provides technical assistance and grants of up to $5,000. The grants can be used to pay for supplies, marketing, inventory, renovations and other uses.”
Kentucky
Marketing Cost-Share Program: One of the programs created by the Kentucky Department of Agriculture “to help small wineries recoup marketing expenses, as well as a Wholesaler Reimbursement Program that reimburses wholesalers $20 per case of Kentucky wines to encourage them to carry local wines.”
Idaho
State Trade and Export Promotion Grant: One of Idaho’s five business grant programs. This program “assist[s] resident companies looking to expand exports. The grant is a pilot program that the state is offering in conjunction with the Small Business Administration.”
Obviously this is not a comprehensive list. Those who want to see what else might be available to them might want to check out Ron Flavin’s book, “Business Grants” below. Before you do, however, Mr. Flavin cautions you about a few things:
1. “[G]rants are rarely, if ever, offered to pay down debt or start a new business — not even for businesses owned by women, veterans or minorities.”
2. If you “do not follow directions, omit important information or do not understand what information is being sought” your proposal will be rejected.
a. There are companies out there who will help you with the grant writing process, however, so just do a bit of research on that.
3. Grants “are awarded for specific purposes that align with national or local interests. They typically come with strict requirements and accountability measures.”
4. Sometimes, “the business must make a matching investment to be eligible.”
So what do you think? Are you like me in thinking that it’s time to take advantage of this source of business investment that is a win-win for both your company and society at large?
