Show me the (grant and low cost) money!
Running a small business is an act of courage.
Recently, I reached out to a large organization for partnership in a project I was putting. First, I reached out to the CEO and he put me on to his team members. They were both gracious people and I had several meetings with persons who I thought were the decision-makers. Then those persons passed me on to marketing to make the final decision. The marketing lady wrote me a lovely letter to say that they want to work with me and we should meet to work out the final cost as my ask was a bit high. So, in good spirits, I was ready to meet. Then I realized that this marketing lady actually blocked my emails after sending off the “gracious” letter.
Does that sound familiar to business owners? The gracious brush off?
And this is why grant money and low-cost funding can feel like a blessing to keep the doors of your small business open.
One of the challenges is working with different personalities, many of whom do not understand the pressures on owners.
I remember being so frustrated by my stress of sourcing sponsorship money or any other sales efforts.
And then COVID19 hit and everyone came with a different type of pressure.
Did it feel like the money dried up?
For me, knowing where the grant and low-cost money are would have been a critical planning tool.
And that’s why we are sharing with you. This free training has all the details you need.
I can speak for myself and other small business owners I know, that it is critical to be creative in getting money flowing into the business.
And finding the money is very difficult when you don’t know where to start. Grant money and low-cost money is an important part of the mix of keeping the cash coming in.
Now, the awesome thing about this current period when so many persons are seeking to bring their business online. That means the ENTIRE WORLD is open to you for funding opportunities.
In this post, we are going to break down the grant and low-cost money sources.
First, we will look at what is available to Jamaican MSMEs.
Second, we will look at what is available to international MSMEs.
Now for persons who want an in-depth course on how to access funding, our Financial Success Academy teaches 101 Ways to Fund your Business and Investments.
That said, we were thrilled at the opportunity to have the list of where to start so that the Micro Small & Medium Enterprise (MSME) sector can have clarity and make good decisions. In a recent interview on the Financially Focused channel, Minister of Industry, Investment, and Commerce (MIIC), Honourable Audley Shaw shared the EXACT location of J$14billion worth of grant money and low-cost loans (that is single digit interest rates) for the micro, small and medium enterprise sector in Jamaica.
Check out our interview here!
The summary below showcases the names of the funding programs that MSME owners can tap into.
The full copy of Minister Shaw’s comments can be found 👀 here.
With🎯 101 ways to fund a business, grant money becomes an important part of the mix. And what is the mix? Grant money, bank loans, funding from your business network, using your existing assets, and more make up over 101 sources that business owners can tap into.
Here is the summary of all 11 sources of grant money and low-cost loans.
*J$4 billion under the Social and Economic Recovery and Vaccine Programme (SERVE) Programme
*J$650m at an interest rate of 4.75% Ministry of Industry, Investment and Commerce (MIIC) – special soft loan fund of to assist productive MSMEs to rebuild, retool and expand their businesses.
*MIIC promotes the use of Provisions of the Security Interest in Personal Property Act (SIPPA) Act to access loans;
*The MIIC through the JBDC will provide training through their Business Support Programme to encourage entrepreneurs to explore new and increased opportunities for exports.
*Scotiabank offering rates as low as 6% to small businesses, with no application fee, for business expansion;
*J$6 billion at Sagicor Bank in loans at the single-digit interest rate, coupled with business development support in collaboration with the JBDC, an agency of MIIC;
*US$23m by JMMB through an IDB Facility to provide affordable financing to MSMEs.
*J$14m in grant funding – Eligible MSMEs can access grant funding for new innovation projects, new business models, new products or product line extensions, or to penetrate new markets;
*J$3m in grant financing to complete testing and to create a minimum viable working prototype of their ideas or scale their business.
*J$250,000 – Go-Digital Voucher and Voucher for Technical Assistance
*J$250,000 – Voucher for Technical Assistance
INTERNATIONAL GRANT FUNDING & LOW COST LOANS
If you are ready to step outside the shores of Jamaica, there are at least 260 international small business grants that you can research for your particular situation.
And if you are looking for support for women-owned businesses, you can start the search here.
A small business grant is essentially free money given to a small business owner to help them launch, develop or expand their organization. Grants, unlike a loan, do not have to be paid back, but they often come with restrictions on how the money can be spent.
Just because a grant is a free money, doesn’t mean it is easy to get. It takes a lot of time and preparation to apply for a grant, and they are highly competitive, so small businesses should only apply for grants they are eligible for.
Entrepreneurs and small business owners can seek a variety of grants, like private grants from corporations and government grants from federal, state, and local governments. Grants are also available for specific industries and demographics; for example, if you are a minority business owner, there are several minority-owned business grants specifically geared toward you.
Regardless of where you apply, grant writers tend to want similar background information about your company.
Here are a few common assets you may need to provide when applying for a business grant:
Time in business
Number of employees
Monthly or annual revenue
How the funds will be used
Your business’s “elevator pitch”
Your Employer Identification Number (EIN)or other identifying government-issued document.
Your social media handles (LinkedIn, Facebook, Twitter, Instagram, etc.)
A photo of you (and, if applicable, your partners or offices). Tip: A professional photo can go a long way, especially for companies looking to use your image on their site when announcing awards.
A business plan.
National Association for the Self-Employed
That said, do you have plans for the steps you would take to grow your business, if you only had the available capital to do so? Would you hire and train additional employees? Market your business in new and exciting ways? Invest in new equipment or software? According to Nerdwallet.com a great resource is National Association for the Self-Employed (NASE).
NASE members can apply for monthly small-business grants worth up to US$4,000, as well as an annual US$3,000 college scholarship for members’ dependents. Grants are awarded year-round, with completed applications reviewed quarterly in April, July, October and January. If you are a digital-focused business, a membership to NASE can be considered as you have to be a member in good standing for 3 months before you can apply for the grants.
Another international MSME opportunity is through the very same payment processing companies that we use every day. Mastercard and Visa are certain that the small business sector is a serious engine of growth and so they have both created grant initiatives to help the MSME sector.
Mastercard Grant program
In the form of limited-time free offers with its partners, Mastercard is helping small businesses open their digital doors in the following way according to its website:
Now more than ever, having a digital presence is critical. Along with our partners, we are working to get you online, protect your business, and ensure you have the right tools to digitally transform.
Move your storefronts online through our e-commerce partners
Get the digital skills you need to be successful in the new normal
Learn how to accept digital payments
Protect your business through Mastercard’s cyber strong bundle
Understand how digitally ready your business is, and get expert recommendations
Benefit from Mastercard’s search tool that tells customers if your business is open
The VISA credit card people are offering Small Business Hub which covers categories such as:
Get funding and manage your finances
Digital resources
Promote and grow your business
Operate and protect your business
For Amazon, the corporate response to the COVID19 pressure on the SMSE sector has been to teach how to seller better and use the Amazon platform more effectively.
Google for Small Business offers several guides and online training for persons who want to ensure that their business is now a digital presence.
YOU HAVE TO BE READY TO WORK FOR IT…..GRANT MONEY IS OPEN TO EVERYBODY….
And while many business owners who are under pressure rightfully seek out grant funding, there is a word of caution.
Grants Are a Direct Competition.
Loans Aren’t. There’s no guarantee you’ll win a business grant or get approved for a business loan. But loans aren’t an either/or scenario where you’re competing directly with another business for the same pot of money. If you can prove to a business lender that you’re credit-worthy and your business financials are sound, you’re likely to get approved for a business loan, whether or not another business in the community applies. Business grants, however, tend to have one or a handful of winners — supplies are limited. You have to not only be a great business, but you also need to be the best business per the grant parameters. That’s not an easy feat for many grants where application requirements are broad.
Are There Any Downsides to Business Grants?
A variety of factors make many business owners skeptical of the “free” money that business grants offer. While every grant has a different application period, rules, terms, and conditions, here are some potential downsides you should keep in mind when applying.
As mentioned above, business grant funds are taxable income for IRS purposes. The funds will still be free money for your business, but you will need to make sure you don’t spend the entire payout without planning for the added income in your tax bill.
Business grant applications take time. You’re already a time-crunched business owner wearing a million hats, do you really have time to apply for every business grant opportunity you come across? It’s a valid complaint about business grants. The likelihood of winning the grant can be small depending on the size of the contest, so you have to make your own cost/benefit analysis to figure out if your most precious asset — time — is worth it.
Of course, grants are only one segment of the over 101 ways to raise funding for your business. Interested in learning more about the different ways to fund your business?🎯 Check out our course here.
