Grants are free money supplements that do not have to be repaid often given by foundations and organizations. The primary place to look for small business grants is through state and local programs. While grants through the federal government are possible, it should be noted that the U.S. Small Business Administration (SBA) does NOT give small business grants. Instead, federal grants can be searched for through the Small Business Innovation Research (SBIR) Program as well as the Small Business Technology Transfer (STTR) Program, whose annual grant contributions combine to around $2billion.
Grants are typically given out like strategic investments where the money provided will go towards improving and progressing the underlying issue or cause that a company tackles.
Grants can be an important source of funding for non-profits.