Many small businesses can’t qualify for a small business loan from a traditional local bank. A bad credit record disqualifies many. Lending standards have tightened. Some small towns are limited by local banks that don’t support small business; others don’t have locally-owned banks any more. The good news is that alternatives are available. We are profiling alternatives to traditional small business loans in this ongoing series on financing.
|Enid, Oklahoma is encouraging businesses to locate
or expand downtown by using small grants.
Local grants can provide business financing in place of a loan. The trick is that they are scarce and not widely known. So you have to do your homework to find out if any might work for your small business.
The granting agencies can be economic development groups, Main Street programs, Chambers of Commerce, cities and towns, even states. The targeted uses might be business expansion, appearance upgrades, or any other purpose the grantor might want to encourage.
- The Enid (Oklahoma) Regional Development Alliance offered $5,000 grants to downtown Enid business owners to startup or expand.
- Miami-Dade County (Florida) offers a Mom and Pop Small Business Grant Program. (Yes, I know they aren’t a small town, but it is a good program.)
- The City of Mangum (Oklahoma) offered $500 matching grants specifically for facade improvements.
Your task is to get out and look for these local grants. It may take a lot of research to find any in your area. Even if you find a local grant or two, there is no guarantee that they will match up with your financing needs for your business, so don’t count on these to save your business.
- 3 Major factors in rural remote work: incentives, flexible workspaces, and a sense of community - June 6, 2022
- How to recruit new residents, remote workers, or remote entrepreneurs - June 2, 2022
- How cooperatives improve small town economies - May 8, 2022
- Metaverse business idea: virtual world tour guide - April 15, 2022
- Make extra money from extra workspace: co-working and 3rd workplaces in small towns - March 28, 2022
- Trade show booth design trend: hand drawn visuals - March 21, 2022
- New business sign design? Don’t use cursive script - February 14, 2022
- Way more people prefer rural than urban, new Pew Research study finds - February 1, 2022
- Top 5 Rural and small town trends 2022 - January 3, 2022
- How to start a real small small business - December 17, 2021