Small businesses are the backbone of the U.S. economy, and the government offers a variety of programs to support them. While most people are familiar with the Small Business Administration (SBA) loans, there are several lesser-known small business assistance programs that can provide valuable assistance. Here’s a list of some you might not be aware of:
1. Small Business Innovation Research (SBIR) Program
What It Offers
The SBIR program provides funding to small businesses engaged in research and development (R&D) that has the potential for commercialization.
Qualifications
- Business must be American-owned and independently operated
- For-profit
- Fewer than 500 employees
How to Apply
Applications are usually submitted online through the SBIR website. The application process involves multiple phases, including a detailed proposal.
2. HUBZone Program
What It Offers
The Historically Underutilized Business Zones (HUBZone) program helps small businesses in urban and rural communities gain preferential access to federal procurement opportunities.
Qualifications
- Located in a “HUBZone” area
- At least 35% of employees must live in a HUBZone
- Must be a small business according to SBA standards
How to Apply
You can apply online through the SBA’s website, where you’ll need to provide supporting documentation to prove your eligibility.
3. State Trade Expansion Program (STEP)
What It Offers
STEP provides financial awards to state and territory governments to assist small businesses with export development.
Qualifications
- Must be a for-profit entity
- Meet SBA size standards
- Have been in business for at least one year
How to Apply
Application processes vary by state. Check your state’s Department of Commerce or equivalent for application details.
4. 8(a) Business Development Program
What It Offers
This program offers a broad scope of assistance, including financial help and federal contracting opportunities to small businesses that are socially and economically disadvantaged.
Qualifications
- Must be a small business
- Must be owned by one or more socially and economically disadvantaged individuals
- Must be in business for at least two years
How to Apply
You can apply online through the SBA’s website, where you’ll need to provide various financial statements and other required documentation.
5. Veteran’s Business Outreach Center (VBOC)
What It Offers
VBOC provides entrepreneurial development services such as business training, counseling, and mentoring for eligible veterans owning or considering starting a small business.
Qualifications
- Must be a veteran, active-duty personnel, or spouse of either
- Must be interested in starting or currently own a small business
How to Apply
Via the SBA’s website. The application process varies depending on the services you’re interested in.
6. Rural Business Investment Program (RBIP)
What It Offers
RBIP aims to promote economic development in rural areas by helping new and existing businesses access capital.
Qualifications
- Must be a rural business or agribusiness
- Must meet the USDA’s specific size standards
How to Apply
Applications are typically submitted through USDA Rural Development state offices.
7. Microloan Program
What It Offers
The Microloan program provides loans up to $50,000 to help small businesses and certain not-for-profit childcare centers to start up and expand.
Qualifications
- Must be a for-profit business
- Must meet the SBA’s size standards
How to Apply
Applications are submitted through local intermediaries, which are nonprofit organizations with experience in lending and technical assistance.
By taking advantage of these lesser-known programs, small businesses can find the support they need to grow and thrive. Always remember to read the fine print and consult with a financial advisor to determine which program is best suited for your business needs.
