What Are Some Federal Funding for Startups?
Federal funding for startups is an excellent way to get funding for a new business venture. There are several federal funding options available for startups, including grants, loans, and tax incentives. In this article, we will discuss some of the top federal funding options for startups.
Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs
The SBIR and STTR programs are competitive funding programs designed to encourage domestic small businesses to engage in research and development that has the potential for commercialization. The programs fund early-stage research and development projects at small businesses with the potential for commercialization. The funding is distributed in three phases, with Phase I providing up to $150,000, Phase II providing up to $1 million, and Phase III providing additional funding to move the technology to the marketplace.
Small Business Administration (SBA) Loans
The SBA offers several loan programs that can be used to start or grow a business, including the 7(a) loan program, which provides up to $5 million in funding for small businesses. SBA loans are provided by participating lenders, and the SBA guarantees a portion of the loan, making it easier for small businesses to obtain funding.
New Markets Tax Credit (NMTC) Program
The NMTC program is a tax incentive program that provides tax credits to investors who invest in qualified community development entities (CDEs) that, in turn, invest in businesses operating in low-income communities. The program provides investors with a tax credit equal to 39% of the investment made in a qualified CDE.
Research and Development Tax Credit
The research and development (R&D) tax credit is a federal tax credit available to businesses that engage in research and development activities in the United States. The tax credit can be used to offset income tax liability or payroll taxes.
Economic Development Administration (EDA) Grants
The EDA provides grants to support economic development in communities across the United States. The grants can be used to fund infrastructure projects, workforce development programs, and other initiatives that promote economic growth.
Find The Right Programs For You
Federal funding can be an excellent source of funding for startups. However, it is essential to research the various programs available and determine which ones are the best fit for your business. By taking advantage of these programs, you can secure the funding you need to start or grow your business.
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