How to Access Federal Funding Opportunities
The federal government gives billions in discretionary funding to state and local governments, businesses, and non-profit organizations every year. Finding federal funding for your industry can be a complex process, as each funding avenue has its own eligibility criteria and application processes. Here are some key sources where you can explore federal funding options:
Grants General Overview
The Federal government uses two kinds of grants:
Grants given by an agency of the Federal government (also known as "discretionary" grants) -- for instance, a homeless assistance grant given out by the Department of Health and Human Services to a homeless shelter.
Grants that put Federal money in the hands of States, cities, or counties for them to distribute to community groups, charities, and other social service providers, usually under their own rules and regulations (also known as "formula" or "block" grants).
Grants.gov is a centralized platform that lists federal grant opportunities from various government agencies. You can search for grants that align with your business's industry, goals, or needs. Register on Grants.gov and set up email alerts to receive notifications about new grant opportunities that match your criteria.
Federal Contracting Opportunities
The federal government often awards contracts to private businesses for goods and services. If your business can provide products or services to government agencies, you can explore contracting opportunities through the Federal Acquisition Regulation (FAR) system and the System for Award Management (SAM) database.
FAR is the primary regulation for use by all executive agencies in their acquisition of supplies and services with appropriated funds. The FAR also contains standard solicitation provisions and contract clauses and the various agency FAR supplements. The Department of Defense (DoD), General Services Administration (GSA), and the National Aeronautics and Space Administration (NASA) jointly issue the FAR.
SAM is used for registering to do business with the federal government, listing contract opportunities, capturing contractor performance, viewing contract data, searching assistance listings, reporting subcontracts, and more. There is no cost to use SAM.gov, and you can even sign up for alerts for opportunities that meet your criteria.
Small Business Administration (SBA)
The U.S. Small Business Administration is a federal agency that offers a range of loan programs to support small businesses. The most well-known program is the 7(a) Loan Program, SBA’s primary business loan program which provides loan guarantees to lenders that allow them to provide financial help for small businesses with special requirements. In contrast, SBA’s 504 Loan Program provides long-term, fixed rate financing for major fixed assets that promote business growth and job creation. Explore the SBA's website to learn about their loan programs, grants, and other resources designed to assist small businesses.
SBIR/STTR Programs
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) are highly competitive programs that encourage domestic small businesses to engage in R&D with the potential for commercialization. Through a competitive awards-based program, SBIR and STTR enable small businesses to explore their technological potential and provide the incentive to profit from its commercialization. Various federal agencies, including the NIH, NSF, and Department of Defense, participate in these programs.
Consult with a Small Business Development Center (SBDC)
SBDCs are funded in part by the SBA and offer free or low-cost consulting services to help small businesses access funding opportunities, develop business plans, and navigate the application process. When seeking federal funding for your business, it's crucial to carefully review eligibility requirements, prepare a strong application, and ensure compliance with all regulations. Additionally, consider seeking assistance from a qualified business advisor or consultant to maximize your chances of securing funding.
USDA Business and Industry Loan Guarantee Program
If your business is in agriculture or rural areas, the U.S. Department of Agriculture (USDA) offers the Business and Industry Loan Guarantee Program, which offers loan guarantees to lenders for their loans to rural businesses. This program improves the economic health of rural communities by increasing access to business capital through loan guarantees. It also enables commercial lenders to provide affordable financing for rural businesses. See more on the program here.
Research and Development Grants
If your business is involved in research and development (R&D), consider exploring federal grants from agencies like the National Institutes of Health (NIH), the National Science Foundation (NSF), and the Department of Energy (DOE). These agencies often fund innovative projects.
State and Local Resources
While federal funding is important, don't overlook state and local programs that may offer grants, incentives, and resources to support your business. State economic development agencies can be valuable sources of funding and guidance. You can search for these opportunities at your local Chamber of Commerce or State-specific agencies’ websites.
While this is certainly not an exhaustive, step-by-step walkthrough of the federal funding process, the Constitution Partners team is very experienced in these efforts and has helped clients secure hundreds of millions in federal investments. Get in touch to learn how we can support your business expansion or economic development projects!