Starting a business in a thriving economy like California can be an expensive endeavor.
However, you get a financial boost to kickstart and grow your business with various federal and state grants.
But mind you: The competition out there is intense.
If only you apply to the appropriate grants and complete your applications mindfully, you stand a chance to secure one of the many grants that the state of California has to offer.
So let’s explore the different small business grants in California with this blog post.
Various Small Business Grants in California
Here’s a list of different grants available for small businesses in California.
1. Grants for Small Business Owners
National Association for the Self-Employed (NASE) Growth Grants
If you’re a small business owner, you can apply for a business development grant from NASE worth up to $4,000. Since 2006, NASE has awarded nearly $1,000,000 through its Growth Grants program. The grants can be used for marketing, advertising, business expansion, and other operational needs.
One of the important eligibility criteria is to become a member of the NASE organization.
California’s Paid Family Leave Program
The California Paid Family Leave (PFL) Grant is designed to help small businesses manage the costs associated with employees taking time off under the state’s Paid Family Leave program.
The grant money is intended to help offset the costs of hiring or training other staff to cover the duties of the employee on leave. Under this scheme, businesses get a grant of up to $2,000 per employee on leave.
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2. Specialty grants
Amber Grants For Women
California leads all states in the USA in startups by women. So, if you’re a woman, or know someone who needs help, this grant will help you.
The Amber grant is offered by the WomensNet Foundation on a monthly and annual basis. Every month three women-owned businesses from the US and Canada get a grant of $10,000. Moreover, the winners of monthly grants are eligible for their annual grants worth $25,000 each.
Route 66 Extraordinary Women Micro-Grant
This program aims to help the millions of people who live, work, and travel through Route 66. Under this program, the Road Ahead Partnership will award up to $60,000 to businesses owned and operated by women.
San Fransisco Women’s Entrepreneurship Fund
This is a joint project of MEDA in collaboration with the Office of Economic and Workforce Development (OEWD) of the Mayor’s office. The Fund will provide mini-grants of up to $5,000 to San Francisco women-owned small businesses.
Projects and upgrades that will have a transformative impact on the business’s ability to grow will be considered here.
Job Creators Quest Grant
This program is designed to support Black, Indigenous, veteran, women, LGBTQIA+, and other underrepresented entrepreneurs in Southern California. Under this program, 10 small businesses will receive a monetary grant of $50,000.
SoGal Black Founder Startup Grant
Black women founders are the fastest-growing community of entrepreneurs. They have a legacy of reinvesting in their communities and creating intergenerational wealth. Unfortunately, less than 0.5% of black women entrepreneurs receive venture capital funding. And, this grant aims to change that. The SoGal Foundation with other sponsors is funding $10,000 and $5,000 cash grants. They even support non-binary entrepreneurs.
Support Latino Business Impact Fund (SLB Impact Fund)
Support Latino Business celebrates the significant contribution and economic impact created by the Latino community. As a token of support, they grant a total of $10,000 through their SLB Impact Fund.
To be eligible, a business must have at least one Latino founder. The founder must have at least 50% ownership. The business must be running operations for at least one year.
Click here to learn more.
Comcast RISE
Startup business owners can avail of two types of grants by Comcast RISE. The first is marketing services along with technology makeovers and the second is a $10,000 grant.
These grants are offered quarterly to startups that have been operational for more than a year.
Another important criterion – a 51% business stake needs to be owned by a woman or person of color.
California Dream Fund
The program is administered by the California Office of the Small Business Advocate (CalOSBA). It’s a one-time $35 million grant program. It aims to seed entrepreneurship and small businesses in the state of California.
Entrepreneurs and small business owners will be provided intensive training through the Technical Assistance Expansion Program (TAEP). Once the training is over, business capital funding of up to $10,000 is awarded.
3. Grants by corporates
FedEx small business grants
FedEx started a small business grant program in 2012 and is still operational. Every year, FedEx announces 10 winners for its grant offering a monetary prize of $20,000 to runner-ups and $50,000 to grand recipients.
Walmart Local Community Grants
Walmart provides non-profit local communities, with grants in the range of $250 to $5000. The funds can be utilized by organizations whose goals are either: economic development, diversity and inclusion, education, environmental sustainability, health and human service, hunger, public safety, or quality of life.
That’s a quick roundup of grants available for small businesses in California. However, the list is exhaustive and you can explore relevant grants for your business on specific government platforms.
Where to find new small business grants?
Find an appropriate grant for your business on these websites.
1. California Grants Portal
The California Grants Portal is a project by the California State Library. It’s your one destination to find all grants and loans offered on a competitive or first-come basis by California state agencies.
2. Grants.gov
Grants.gov is a comprehensive resource of available government business grants. Such grants are allocated by various federal agencies. This not only helps them support a wide range of businesses such as restaurants, home improvement, and dental clinics but also helps foster economic growth.
3. SCORE.org
Backed by the U.S. Small Business Administration (U.S. SBA), Score.org provides business assistance to business owners. A learning library, resource center, and experienced mentorship are provided. Mentors provide customized advice based on your grant application.
4. Small Business Development Centers (SBDC)
SBDC, backed by the U.S SBA, helps you apply for various grants and provides business assistance. They act as your best alternative to private consultancy, without being expensive. They help with – marketing, engineering, production, etc.
5. California Grantwatch
This website helps nonprofits and small business owners stay up-to-date about the latest available grants. You can filter grants based on your location and interest.
How to find the best-suited grant for your business?
Now that we understand the various grants for helping small businesses grow, let’s discuss the grant application process in detail.
1. Understand your business eligibility
Securing a grant is highly competitive in California.
So as a business owner, save your time and effort by checking if you meet the eligibility criteria for the available grants. This can also help you leverage business opportunities.
For example, if you, your spouse, or your business partner belongs to a minority community, you become eligible for grants that cater specifically to these communities.
2. Check if your business is a right fit for grants
A few criteria that business owners must be aware of and have documents to support their claims:
- The number of years the business has been operational
- Revenue growth attained in each financial year
- Tax returns for each financial year
- Assessment test results such as FICO (Credit scores)
- Previous grants applied and accepted/rejected
- Number of employees
- Percentage of the business stake owned by BIPOC or minority community member
- Type of organization – for-profit or non-profit
Alternatives to grants
If you find yourself ineligible for a particular grant or find the process of applying for a grant cumbersome, you can explore other financing alternatives or borrowing options such as loan programs, credit cards, or crowdfunding.
Let’s understand them.
1. Small business commercial loans
You can choose the right financing needed by comparing options such as – bank loans, SBA loans, business lines of credit, equipment loans, and term loans. Loans are hassle-free and easy to obtain but require business owners to keep collateral.
2. Small business micro-loans
If commercial loans don’t interest you, consider exploring micro-loans. Microloans are small loans that are less than $50,000, have short terms, and have low interest rates.
3. Small business credit cards
Do you want to undertake business purchases while earning rewards? Credit cards are the right option for you then. Explore a host of credit cards that meet your needs.
4. Crowdfunding for small businesses
Online platforms such as Kickstarter help businesses leverage the power of the internet and fund their ideas. Individuals can support businesses they love.
How do grants impact your business?
Still unsure if availing of grants is the way to go? Let’s dive deeper.
Advantages
Here are the advantages that will motivate you to apply for a grant:
Easy access to capital
If you’re a small business owner looking to expand your business or hire specialists in your existing team, grants can help you achieve those objectives quickly. Grants act as complimentary money without the pressure to repay.
Waterfall effect
If your small business has qualified for a grant and has generated a positive return on the investment, it becomes easy to secure successive grants. This happens because investors get to see a positive outcome in the process.
Helps gain credibility
If you have been awarded a grant, it helps you gain visibility for your work easily. This helps you promote your business idea and get your business noticed.
Explore untapped opportunities
Certain grants ensure that the small business spends on particular activities such as hiring consultants and examining their environmental impact. This helps businesses explore untapped opportunities which in return could prove to be beneficial for the firm.
Limitations
Here are some limitations you should keep in mind:
Competitive
The competition for securing grants is intense. The best way is to be on the constant lookout for available grants before they close their applications.
Time-consuming
The grant application is a tedious and cumbersome process. A lot of process needs to be taken care of before the aid is availed. Research, paperwork, finding the right fit for your business, and a convincing proposal need to be drafted to qualify.
Uncertain renewal
One of the major drawbacks of grants is that they might not be renewed. This can be scary since business owners need to undertake decisions based on the grants available, which may not be in the best interest of the firm. Entrepreneurs would have to reapply to avail of grants once the funds are exhausted.
Conditions attached
Although grants help scale your business operations, there are restrictions and conditions attached. Businesses can invest the grant only for specific activities. Therefore, business owners should be clear about the purpose of grant usage.
Conclusion
You now have a list of grants available for your small business in California.
Time for some homework. Identify the grants suited for your business, check their eligibility requirement, and prepare the documents essential for application.
While at it, you may require a business plan to submit along with your application. With the Upmetrics business planning app, you can create a comprehensive detailed plan in about 10 minutes.
So stop pushing your entrepreneurial dreams now. Fill out your application and apply for a grant now.
