Small business grants in California are somewhat difficult to come by these days. However, there are efforts going on to change that. You’ve come to the correct place if you’re a small business owner in California seeking grants to help you build your company.
We understand how difficult it may be to obtain grants, and how intimidating government websites like the Small Business Administration website can be for the typical applicant. Even applying for funds, such as the Amber grant, involves some effort and adherence to a procedure.
The amount of money available, as well as the application process, will differ depending on the lender and the applicable program. Small and medium enterprises can receive free grants or loans, and some lenders (or government programs) may be able to assist minority and women entrepreneurs (MWBEs) as well as Black, Indigenous, and People of Color (BIPOC). Assistance is available if you need money to establish a business or expand an existing one. More information on the most recent programs can be found below:
Grants for starting a small business in California up to $2,000 and grants of up to $10,000
Small enterprises with gross yearly receipts of less than $2.5 million are eligible for grants. Businesses must have closed or seen a 25% drop in revenue during the coronavirus outbreak to be eligible. Additional neighborhood-based criteria can be found by clicking on the links in the description above.
Grants to California businesses for capital projects to comply with storage tank health regulations
Small businesses in California can receive up to $70,000 in grants for capital projects that are in conformity with health requirements. Owners and operators will be able to use the money to upgrade, remove, or replace underground storage tanks. Replacement and removal of single-walled USTs and/or piping with double-walled USTs and/or piping, UST upgrades such as installing containment sumps, under-dispenser containment boxes, or pans, electronic monitoring systems, and upgraded leak detection tests are all examples of eligible costs.
Grants to Black Businesses in California in the aftermath of the COVID-19 Crisis and Racial Unrest
Grants of up to $5,000 to qualifying California Black-owned brick and mortar companies to help minimize the negative effects of the Coronavirus (COVID-19) crisis and local racial justice protests. Successful candidates will receive technical help as well as reimbursement of rental bills in addition to the cash grant. The money will go toward repairs, equipment purchases, and security costs. Businesses in Oakland must benefit from the grants.
Small business Grants for minorities in California
The following is a list of small business grants in California and loans available for small women or minority-owned enterprises. It’s updated every day, with the most recent announcements at the top. A variety of California banks, government programs, and community organizations regularly provide funding to Black, Latino, women-owned, LGBTQ-owned, and other minority-run businesses.
- Microloans from Kiva are available all around California.
- African-American Small Business Association
- Foundation of the California Asian Pacific Chamber of Commerce
- San Diego City Heights Community Development Corporation
- Small businesses in Fresno
- Fund for Oakland’s Black Businesses (OBBF)
Grants for a small business Start Up in California
1.Loans from the Community Advantage Program
The Small Business Administration (SBA) offers Community Advantage loans to firms in underserved communities through local lenders. Small business grants in California or Minority business loans are available in amounts ranging from $50,000 to $250,000.
If the loan is under $150,000, the SBA will guarantee up to 85% of the loan; if the loan is beyond $150,000, the SBA will guarantee up to 75% of the loan. The interest rates are usually between 7% and 10%. The loan can be used for almost anything related to your business. The loan, however, cannot be used to establish a revolving business line of credit.
You must first locate a Community Advantage lender before you can apply. For further information, contact your local SBA office or business center. They’ll assist you in submitting your application once you’ve found a suitable lender for you.
While each lender’s requirements differ, it’s a good idea to acquire the following information as you prepare to apply:
- Business and personal tax returns
- Financial statements for businesses
- Bank statements for businesses
- Business strategy
- Business debt schedule
- Personal guarantee and collateral
- Legal paperwork
2.Microloans from the Small Business Administration (SBA)
The SBA microloan program allows small enterprises and nonprofit childcare facilities to apply for loans ranging from $500 to $50,000. Although anybody can apply for a microloan, the program is geared toward women, veterans, low-income folks, and minorities who own businesses. This is a great opportunity in form small business grants in California.
The program provides roughly $13,000 to small business owners on average. The interest rates on these loans normally run from 8% to 13%, and you must repay the debt within 6 years.
Microloans can be used for a variety of purposes, including:
- Working capital
- Furniture or fittings
- Inventory or supplies
- Equipment or machinery
- You can’t utilize the loan to buy a house or pay off a credit card debt.
Grants for starting a small business in California
Small business grants in California are a valuable resource. Several groups, on the other hand, provide funding to minority businesses without expecting repayment.
1.Minority Business Development Agency
The MBDA’s mission is to connect minority-owned firms with the capital, contracts, and resources they need to succeed.
Throughout the year, the organization awards grant prizes to chosen enterprises that have project ideas. These funds can be renewed when the initial project is completed.
The process of applying for a grant has four parts, which you may learn about by viewing the video prepared by the organization to explain the procedure.
2.National Minority Supplier Development Council
The mission of this group is to expand possibilities for certified minority-owned businesses. The NMSDC is a corporate member organization that runs the Business Consortium Fund, which provides its members with both financial and business services.
To receive access to the organization’s resources, you must first become certified and join the community. To be eligible for certification, your company must
- Have at least 51% minority ownership.
- Be classified as a profit enterprise and based in the United States or trust territories
- Be classified as a profit enterprise and based in the United States or trust territories
3.Small Business Grants in California from FedEx
Each year, FedEx gives more than $250,000 to 12 small businesses. The program, according to the corporation, focuses on granting funds to businesses that provide “niche and underserved market products, sustainable business strategies, and just all-around unique products.”
Since its inception, the competition has recognized numerous minority and women-owned businesses. The contest will shortly be open for entries for 2021. For additional information, see the FedEx Small Business Grants in California Contest page.
Conclusion
For business owners or anyone looking to establish a business, there are a variety of possibilities. In California, low-interest or even no-interest loans or grants may be available for Black-owned businesses, LGBTQ-owned businesses, Latino, immigrant, Asian, women-owned businesses, and other minority groups, including veterans.
While the major cities of Los Angeles, San Diego, and San Francisco will have the greatest number of minority and/or women-owned company loans and free grants available, there are programs accessible throughout the state. However, the monies are generally available from lenders per city or county rather than statewide.
