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Grants to Start a Small Business in Alabama

How can I get a grant to start or expand my business in Alabama?

Unless your business involves the development of new technology or is a non-profit organization, it is difficult to find a grant to start or expand a small business.

Nearly every day a Small Business Development Center (SBDC) office or the Small Business Administration (SBA) gets a call from someone who has responded to an ad that implies there is free money available to start a business.  It just isn’t true.  If it were, the people who work in those offices would all have one of those wonderful grants and be starting their own businesses. What really happens is that those folks at  SBDC’s all over the country spend a lot of their time trying to keep hopeful entrepreneurs from getting ripped off by providing real information about this sinister scam.

Yes, there is grant money available from private foundations and government entities.  No, it is not available to individuals to start for-profit businesses.

Even though many publications and talk shows publicize grants to small businesses, there are only certain types of government grants available to small businesses.  SBA, for instance, offers “Small Business Innovation Research” (SBIR) and “Small Business Technology Transfer” (STTR) grants.  Grants from other agencies may also be available for new technologies, inventions, or products.  The U.S. government does not currently provide grants for starting or expanding a small business.

Finding and identifying government agencies that give grants for specific purposes or in specific subject areas requires considerable time, effort, and research.  Getting a grant is hard work.  Don’t be fooled by advertisements and promotions that state that you can get “free money” just by asking for it. There is a lot of competition for grant funds.  To be successful in winning a grant, you must provide the funding agency with a well-written proposal that clearly states your objectives and sets forth a plan and budget for your activities.  Grants are “free” in that you do not have to pay back the money.  However, if you are awarded a grant you may be required to provide periodic progress, program evaluation, and/or financial reports to the government.

The vast majority of government grants are given to non-profit organizations for programs and services that benefit the community or the public at large.  There are other types of grants such as those from foundations, corporations, or private organizations.  These non-government organizations have specific requirements as to who is eligible to apply for and receive grant funding.  By and large, foundations do not make grants to for-profit enterprises.

  • BusinessUSA – Access Financing
    This interactive tool from the Federal Government allows you to describe your business and your needs, and generates a list of government financing programs that may be available to you.
  • SBA Loan Programs
    The SBA offers a variety of loan programs for very specific purposes. See if you qualify to participate in the programs described here.
  • Grants.gov
    A central location for thousands of grant programs from the 26 federal grant-making agencies.
  • The Foundation Center
    Among the features of this independent organization on foundation grants allows grantseekers to pose questions to an online librarian.
  • GrantsWeb
    A compendium of links to private and government grant resources, here in the U.S. as well as abroad.

There are a few highly competitive private sector grants for certain types of businesses.

The Alabama SBDC Network has a talented group of business advisors that are interested in helping your start or grow your business.  Even if a grant isn’t available, you should take a moment to talk with a business advisor about the options that are available.  Business plan competitions are offered statewide, such as Alabama Launchpad, and smaller competitions are offered locally.  Talk with your SBDC business advisor for more information.


Please, don’t send money to this guy:
The only person that has ever received any money from this book is the author.  The Federal Trade Commission won a judgment against this company for fraud.free-money2_medium[1]