Listen to this article now
Starting a new business can be pretty difficult without some help, specifically, financial help. Thankfully, there is always a way to receive financial assistance. You can get help from investors, banks, loans, corporations, or federal funding.
Federal funding may not always be easy to attain, but I will show you some examples of federal funding available and how it positively impacts growing businesses in Chicago, Los Angeles, and Boston.
Financial Funding During COVID-19
During the beginning of the COVID-19 pandemic, thousands of new and well-established businesses were struggling. Businesses were either on the verge of closing or had no choice, but to close. As a result, the United States government provided $932 billion in small business loans and advances. However, businesses that were provided financial assistance during this period still required more assistance. This was not enough because the pandemic severely disrupted consumerism and the economy.
Since it was quite evident that even after providing $932 billion businesses were still struggling, Congress passed the American Rescue Plan Act (ARP), this provided further small business relief, including:
- expanding the Paycheck Protection Program (PPP) by $7.25 billion
- $15 billion was made available to the Small Business Administration (SBA), which provided 10,000 grants to businesses
- $29 billion for a Restaurant Revitalization Fund
The American Rescue Plan Act rejuvenated our failing economy by providing these small businesses relief.
How to Get Federal Funding for Small Businesses
The best way to get started on your search for federal funding or grants is by doing a simple internet search. Websites, such as https://www.grants.gov/ provide you with a comprehensive database of funds that the government will give away. Make sure to also check in with your state and local governments because they will provide you with further opportunities.
There is a variety of grants to apply for, so go for it! There is eligibility, such as women-owned businesses, minority-owned, veterans, education or tech-based businesses, and many more that may apply to you. The resources available for funding are endless, so just check and see if you are eligible for one of the many grants out there!
Federal Funding in Chicago
Cities like Chicago that had a hard time acclimating to the COVID-19 pandemic, provided extra funding for their citizens and small businesses. They recognized the burdens that COVID-19 brought towards their community and their response was to establish the Chicago Small Business Resiliency Fund. This fund provided small businesses and non-profits with emergency funds. The fund is since closed, but it was very helpful during the beginning stages of the pandemic. Chicago still has other federal funding available for businesses as well.
Federal Funding in Los Angeles
Similarly, cities, such as Los Angeles have also allocated federal funding. Los Angeles community members were hit hard by the pandemic, so it was necessary that assistance was provided.
For instance, last Tuesday, Mayor Eric Garcetti, announced the launch of a grant program that will provide $5000 grants to five thousand small businesses in Los Angeles. The city is allocating funds from the American Rescue Plan Act to provide $25 million worth of grants. In a sense, the COVID-19 pandemic demonstrates that the government has more than enough money to provide to those in need, but it seems like it takes a major crisis to force the government to help.
Nonetheless, the grant program in Los Angles will be extremely helpful! The money will be distributed through the Comeback Checks program, and recipients will be selected through a lottery process.
Federal Funding in Boston
In order to mediate the issues that came with the pandemic, Boston has created the Small Business Relief Fund 2.0. This fund is designed to help businesses cover business expenses to help their recovery. It will assist businesses that seek to grow beyond the pandemic. Boston is trying to move past the pandemic and ensure that businesses will be able to thrive.
With the Small Business Relief Fund 2.0, all small business applicants will be considered for one or two grants. Businesses can be considered for either a relief grant, a growth grant, or both. These grants can help address lost sales, fixed debts, and materials. It can overall build companies back up and provide them with the lost revenue and consumers that occurred during the pandemic.
How attainable is federal funding for small businesses? Is there enough funding or should there be more? Let us know down in the comments!
This article originally published on GREY Journal.