Obtaining Business Grants for Your Small Business
Whether you are already a successful organization internationally or an entrepreneur looking to launch your great idea in New York City, finding the necessary funding is certain to be a roadblock in your mission to growing your business in New York City and the U.S. market.New York City is unique in that there are a variety of ways to approach funding. While there are a number of well established and successful angel investors and venture capital funds in the city, some of the biggest funding opportunities come from federal grant funding for small businesses. Many people fail to realize the number of grants and other methods of funding which are available; these could be the key to getting your business on its feet in New York City.
Government agencies that have a research and development budget of more than $100 million are required to allocate 2.5% of their budget to SBIR grants to help small businesses get started. There are currently 11 federal agencies involved in the program.
- Department of Agriculture
- Department of Commerce - National Institute of Standards and Technology
- Department of Commerce - National Oceanic and Atmospheric Administration
- Department of Defense
- Department of Education
- Department of Energy
- Department of Health and Human Services
- Department of Homeland Security
- Department of Transportation
- Environmental Protection Agency
- National Aeronautics and Space Administration
- National Science Foundation
The funding options available from the government in the form of grants generally have strict criteria that must be met and followed in order to be awarded the funding. Some of the key criteria that might present issues for international entrepreneurs are that applicant businesses must be:
- Organized for profit, with a place of business located in the United States.
- At least 51% owned and controlled by one or more individuals who are citizens or permanent resident aliens in the United States, or
- At least 51% owned and controlled by another for-profit business that is at least 51% owned and controlled by one or more individuals who are citizens or permanent resident aliens in the United States, and
- Cannot have more than 500 employees, including affiliates.
Another federal funding option comes in the form of the Small Business Technology Transfer, or the STTR. The main goal of this grant is to “support scientific excellence and technological innovation through the investment of federal research funds in critical American priorities to build a strong national economy.”Similar to the SBIR, federal agencies with funding of more than $1 billion are required to invest .3% of their R&D funding into the STTR. This list is far smaller, with only five agencies involved.
- Department of Defense
- Department of Energy
- Department of Health and Human Services
- National Aeronautics and Space Administration
- National Science Foundation
- Nonprofit college or university
- Domestic nonprofit research organization
- Federally funded R&D center
Accessing Federal Funding as an International Entrepreneur in NYC
One of the most notable non-profit organizations is NYC Seed. NYC Seed is a partnership of four influential organizations in New York City which provides funding, mentoring, and support for small businesses. The organization has numerous success stories in their portfolio covering a variety of industries.One of the organizations involved with NYC Seed is the Industrial + Technology Assistance Corporation, or ITAC. ITAC coaches small businesses through the process of getting SBIR or STTR funding while also providing a number of helpful resources on their website. They also provide coaching on how to approach venture capital funds.The New York City Economic Development Corporation, or NYCEDC, explains its core mission as raising economic development in the five boroughs of New York. International entrepreneurs are certainly a key to achieving their mission of economic development. Their website offers information for international businesses looking to operate in New York City as well as resources to help the economy of New York City grow. Some notable helpful tips include how to find office or incubator space, how to find partners and talent fit to your organization, as well as information on other programs for entrepreneurial development. One of their most notable success stories is American airline giant JetBlue.Even the NYC government is happy to provide incentives for operating out of New York City. Between tax breaks and other money saving offers for small businesses, the government does its best to make operating in the city as achievable as possible. They have a great deal of resources for small businesses in New York City available on their website.