Starting a brand is hard, and running a business is certainly not cheap. Fortunately, there are alternative funding sources that go beyond traditional methods (no, VC is not your only option!) that can offer different terms, requirements, and structures for funding. The League of Originals has compiled funding sources you can consider and guidelines to help you determine if you qualify. We suggest tailoring your approach to the source that best aligns with your project's goals and needs.
Government Available Resources
- The United States Small Business Administration (SBA) functions as a federal governmental organization dedicated to bolstering the nation's economy by assisting small enterprises.
- The Women-Owned Small Business Federal Contracting Program is dedicated to funding exclusively women-owned businesses, promoting equity and equal opportunities for women entrepreneurs.
- The Minority Business Development Agency (MBDA) manages small-business assistance centers that resemble SBDCs (Small Business Development Centers). While the MBDA doesn't directly provide grants to businesses, these centers serve as conduits to grant organizations, aiding in the application preparation process and facilitating access to various forms of business financing
- Grants.gov hosts an extensive array of small business grants sourced from diverse federal agencies, including the Bureau of Educational and Cultural Affairs and the United States Department of Commerce.
Numerous local and state entities also provide grants for small businesses. These grants might cater to specific industries or emphasize broader objectives in economic advancement. To locate grant possibilities at the state and local levels, explore the website of your state's economic development agency or get in touch with your local chamber of commerce.
Demographic-Specifiic Grants
- The Women Who Tech Grants Program extends financial support to tech/health tech startups owned by women to bridge the gender gap within the tech industry.
- IFundWomen serves as a platform where women-owned businesses can establish connections, secure partnerships, and access financing opportunities. It frequently collaborates with notable companies such as Adidas, American Express, Diageo, Unilever, Visa, and others to provide grants to women entrepreneurs.
- The Hello Alice Small Business Growth Fund offers grants of up to $5,000 to small business proprietors, encompassing women, individuals of color, veterans, LGBTQ+ individuals, people with disabilities, and anyone in the United States with entrepreneurial aspirations and the determination to pursue them.
- Through Grow by Invoice2go, entrepreneurs who identify as Asian-Indian, Asian-Pacific, Black, Latino, Native American or Alaska Native, Arab or Middle Eastern, Native Hawaiian or Pacific Islander, LGBTQ+, or individuals with disabilities have the opportunity to receive grants of up to $15,000.
- The BIPOC Small Business Grant offered by AnnuityFreedom.net provides recurring monthly grants for entrepreneurs who belong to the Black, Indigenous, or people of color communities.
- Backstage Capital operates as an investment fund with a focus on supporting underrepresented groups in entrepreneurship. It allocates funds to small businesses led by women, people of color, and LGBTQ+ founders.
- Bold Beginnings is for women under 30 with big ideas. Those chosen to attend from across North America share their vision. One leaves with $25,000 - All leave knowing they’re capable and believed in, equipped with meaningful support.
- The Pepper Start Up Grant, specifically for Black women business owners, offers a $5,000 no-strings-attached grant annually and is committed to providing access to their networks, resources, exposure, and mentorship opportunities to recipients.
- The Enthuse Foundation is a non-profit organization investing in a new generation of female entrepreneurs. Their annual pitch competition celebrates women making their mark on the food, beverage, and CPG industry, allowing five entrepreneurs to pitch their businesses on a panel of industry experts and be eligible to receive up to $10,000.
Growth Without Grants
- Angel Investors: Angel investors are individuals who provide capital for startups in exchange for ownership equity or convertible debt. They often look for innovative ideas and strong growth potential. To qualify, your project or business should have a clear value proposition, a solid business plan, and the potential for high returns.
- Crowdfunding: Crowdfunding platforms like Kickstarter, Indiegogo, and GoFundMe allow you to raise funds from a large number of individuals, usually in exchange for rewards or early access to products. Qualification typically depends on the uniqueness of your idea, how well you communicate it, and the appeal it has to potential backers.
- Corporate Sponsorship: Some businesses seek funding from larger companies in exchange for brand exposure, product integration, or partnership opportunities. Qualification often depends on how well your project aligns with the sponsor's interests and how it can benefit their business.
How Do I Know If I Qualify? Consider these steps.
- Research the Funding Source. This includes reading their eligibility requirements, guidelines, terms, and any other information they provide on their website or in their documentation.
- Review Eligibility Criteria. These criteria could include factors such as the type of project, industry, geographic location, stage of development, financial performance, and impact on the community.
- Compare Your Project or Business. Make a list of the specific requirements and evaluate how well your situation aligns with each one.
- Assess Potential Challenges: Identify any potential challenges or gaps in meeting the eligibility criteria such as funding amount, business experience, or market validation.
- Gather Documentation. Gather all relevant documentation that demonstrates your project's qualifications. This might include business plans, financial statements, market research, team bios, and any other information that supports your case.
- Seek Professional Advice. If you're uncertain about whether you qualify, consider seeking advice from professionals or experts in the field. This could be a mentor, advisor, industry peers, or consultants who have experience with the funding source in question. Seeking a mentor? Chat with experts through our platform today.
- Contact the Funding Source. If you're still unsure about your eligibility after your research and assessment, consider reaching out to the funding source directly to clarify any uncertainties you have.
Apply! If you believe your project meets the eligibility criteria, start preparing for the application process. Ensure you have all required documents ready, and be prepared to address any questions or concerns the funding source might have.