Running a business in California takes determination, passion, and let’s face it, money. Whether you’re just getting started, or trying to recover from a setback, there are funding programs out there that can help you.
This guide walks you through some of the best business grant options available, as well as some tips and tricks for the application process.
Grants are more than just free money, and loans are more than just debt. When exploring ways to fund your business, it’s a good idea to look at both sides of the coin.
It’s true a business grant is money that does not need to be repaid. They are typically awarded to business applicants by nonprofit or private organizations, or government agencies.
Business grants are usually limited to specific types of businesses, like tech startups, woman-owned businesses, or other industry specific companies. Luckily, there are a wide variety of grants and most businesses will be able to find one they qualify for.
Grants are competitive, which means they can be a little harder to obtain as there’s possibly hundreds of other businesses applying for the same pool of money. However, they are worth the extra effort because it’s a free source of funding that won’t add a burden of debt on your business.
Business loans do need to be paid back with some kind of interest rate attached. They are the most common type of small business financing that is easier to obtain than grants. Even though they do have to be repaid, there are some bonuses to loans over grants.
Loans help you build credit. When your business takes out a loan, and makes the payments on time, this increases your company’s credit score and ability to make bigger purchases. Building trust with business lending institutions is always a good idea!
Loans don’t have spending restrictions like grants often do. You can walk into a bank or credit union to apply for a business loan and use that money however you see fit for your company.
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California offers several grant programs made exclusively for businesses in the Golden State. These grant opportunities are meant to encourage innovation and support small businesses in local communities.
The California Grants Portal is like your all-in-one hub for all things grants and loans. Created by the California State Library, this portal gives you access to dozens of funding opportunities from several California state agencies. You can filter your search by applicant type (individual, business, nonprofit, etc.) or browse grants available by industry type (tech, housing, education, and more). You can also narrow your search by timeframe and find funding available within the month or up to a year out.
The California Office of the Small Business Advocate (CalOSBA) is your navigator on the high seas of business adventure. CalOSBA will point you in the right direction to find funding programs, technical assistance centers, business training, and multilingual support. Their business navigation team will help you decide which program(s) you need and how to begin.
If your business is farming, or involves food production on any scale, the California Department of Food & Agriculture’s Office of Farm to Fork has grants for you! The CDFA focuses on improving food access and sustainability through grants and programs for community gardens, urban agriculture, and ag-tech innovations. Their goal is to strengthen local food systems while protecting the environment and improving public health.
But before you can apply for a grant? You’ll need your business formed with the state! That’s where we can help with our free filing service.
Here are some business grant programs available to all businesses across the United States:
The Amber Grant was started by WomensNet in 1998 to honor Amber Wigdahl who passed away before she could accomplish her business dreams. Every month, the Amber Grant awards at least $10,000 to three woman-owned business. There are also grants awarded to three woman-owned businesses at the end of the year. The eligibility requirements are:
The application process for this grant is quick and easy. All you need to do is submit your contact information, your business plan, and write an explanation for how you would use the money. One application is all it takes to be considered for all the grants offered by WomensNet.
The FedEx Small Business Grant Program has been running for over twelve years. Their goal is to help small businesses get a strong start through business training courses, access to business consulting experts, and a “sweepstakes” business grant contest:
Previous winners showed off their creativity, innovation, and wrote a moving origin story that won the judges over. You’ve got nothing to lose, and only money and national exposure to gain, when you apply for this grant.
If you need money quick without a bunch of paperwork to fill out, then give the Galaxy Grant a try! The Galaxy Grant Program was designed to give business owners both a financial and a confidence boost. It’s specifically aimed at women and minority owned businesses who need help with growth and development.
The Galaxy Grant Program has been running since 2016 and has given away over $240,000 so far. The short, stress-free application process and minimal eligibility requirements makes this grant worth jumping on!
Getting the money you need is a good start, but finding the right connections and support is priceless. Your business will need both to grow sustainably with confidence. Here are some additional sources of funds and support:
The ACCION Opportunity Fund provides microloans, coaching, and peer support for entrepreneurs who need accessible options in under-served communities.
Did you know your local Chamber of Commerce can help you find funding, training, and other support for your business? Check out your local Chamber of Commerce website to find business networking events, training workshops, and for applications to local funding and financial relief programs.
If you’re a business owner with limited assets or credit history, you may want to try the California Capital Access Program (CalCAP). CalCAP is a business loan program with a more forgiving “risk assessment” process. This means that credit-worthy businesses who may have been turned down for traditional loans by banks because of their credit history, may be able to get the funds they need from CalCAP.
The Small Business Administration (SBA) helps businesses that need help covering daily business expenses, buying new equipment, or recovering from a fire, flood, or other disaster. The funding offered by the SBA is often more accessible with flexible pay-back terms than you get with other traditional bank loans.
All grants are going to be competitive, but with the right preparation, your application can have the best chance of catching the eye of the judges. The following tips and tricks will help you get organized, meet all the requirements, and choose the kind of funding that meets your needs.
Before you start grinding away at the application, make sure your business qualifies for the grant:
Knowing the eligibility requirement by heart will save you time and frustration, and help you avoid an application rejection.
Most grants (and loans) will require copies of your business documents. The most commonly requested documents are:
If all this looks overwhelming, free help is available! California’s Small Business Development Centers (SBDCs) offer free expert assistance with grant and loan applications. They can also help you write up a solid business plan to keep your business on track.
Grants are free money, which sounds great, right? But if you need money right away, a loan might be a better choice. There are ups and downs to each type of funding, choose the one that will best support your business longevity.
Remember, there’s no limit to how many grants you can apply for! The more applications you have out there, the higher chances you have of winning one. Loans are another story! Look for loans that offer flexible terms, no hidden fees, and low monthly payments.
With so many grants, loans, and resources available, finding the right support for your California business is within your reach. Look for programs that suit your needs and help you meet your goals. Gather your business documents together and don’t be shy about reaching out for help! Reach out to local support centers, and get ready to level up your business. You’ve got the power!
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