The following excerpt is from the staff of Entrepreneur Media’s book Finance Your Business. Buy it now from Amazon | Barnes & Noble | iTunes
In 2016, there were an estimated 11.3 million women-owned businesses in the United States — a 45 percent increase since 2007, according to The 2016 State of Women-Owned Businesses Report from American Express. This percentage increase exceeded the national average of business growth during the same time frame by five times. It also illustrated what we already know: Women entrepreneurs are having a tremendous impact on the small-business landscape nationwide.
Yet to continue to be competitive and grow, these entrepreneurs have to find funding for their ventures. And, alarmingly, women entrepreneurs are increasingly being turned away by banks for small-business loans. Thankfully, they have other options, given the rise of technology-driven financial lending sources, such as online loans, peer-to-peer loans and crowdfunding.
Then there are government grants. While not widely known or used, these grants are another great option for women seeking extra funding for their business ventures. They just take a little more work.
Understanding grants
Business owners often turn to grants because they’re not required to pay them back; essentially, you can look at grants as “free money,” although they come with stipulations. Also, understanding and navigating the grant process can be complex.
First, you have to research and find a grant for which you’re eligible. Then you have to understand the strict application and compliance guidelines you must meet to be eligible. You must devote time and energy to the lengthy application process, and then wait for approval. You have to compete with other businesses for the same pool of money. And finally, if you’re awarded a grant, you must report on how you used it. In a nutshell, you need to have all your ducks in a row, upfront and afterward.
Finding federal and state grants
Many business owners think federal grants are just a click away. We’ve all seen the ads promoting free federal money to start a business, but this is a huge misconception. While there are federal grants available in the areas of medical research, science, education and technology development, no such…