Posts from — October 2008

One of the common questions that we get at Schoolhouse Partners is “Can an individual find a grant to help start a business?” Unless it is for a clear purpose, the answer is no.

Many foundations offer grants to individuals in the form of scholarships or fellowships, and in almost all cases, the money is donated directly to the institution sponsoring the educational program or research, not to the individual. Foundations also offer grants to nonprofit organizations such as Boys and Girls Clubs or a local literacy program. And others offer grants to educational institutions for special studies or research.

As a rule, most foundations do not make grants to for-profit businesses. When such a grant is found, it is usually for a very specific purpose and not for general operating purposes or start up. Most of those types of grants come from government sources, such as the SBIR (Small Business Innovation Research Program) and STTR (Small Business Technology Transfer Program) grants. Both grant programs are highly competitive and have specific eligibility requirements.

Foundations grants tend to be less competitive compared to government grants, but each foundation has its own mission and policies on what kinds of organizations or causes they will support. For example, a community foundation in a rural area may have grant programs only for agritourism or economic development purposes. Other foundations may support environmental causes or educational programs. On a rare occasion one may find a small grant for a for-profit business, however they are very localized (confined to a specific community) and few and far between.

For the business owner, the recommendation is unless there is a specific purpose for one to seek a grant, the time and effort are better spent on working on improvements to one’s business. To find out if your business is eligible for SBIR/STTR grant, visit the website for more details.