Starting and growing a small business often requires financial resources. Despite the popular belief that there are many grants for small businesses, this is not as common as many entrepreneurs might hope. It’s important to be cautious when searching for grant information, as there are many scams that prey on individuals who believe there is an abundance of free money available for starting a business. If you are asked to provide money or personal information, such as your bank account or credit card number, in exchange for grant information, it is likely a scam.
In addition to grants, there are a number of Arkansas small business microloans to consider. These community-based programs are an underutilized source of small business funding and are generally more accessible than funding from commercial banks.
Related: Guide to starting a business in Arkansas
Seed Capital Investment Program
The Arkansas Economic Development Commission (AEDC) offers the Seed Capital Investment Program (SCIP) to support the growth and development of innovative, technology-based businesses in Arkansas. This program aims to stimulate the state’s economy by creating high-wage jobs, attracting private investment, increasing tax revenues, and advancing the benefits of science and technology.
SCIP investments are typically made on a royalty basis, with grant amounts not exceeding $500,000 per enterprise. The funding can be used for various qualified securities, including debt financing, equity financing, royalty participation, stock appreciation, or a combination of these financing arrangements.
Area served: The program is available to enterprises with their principal place of business in Arkansas.
SBIR Matching Grant
The Small Business Innovation Research (SBIR) Matching Grant Program, offered by the Arkansas Economic Development Commission (AEDC), is designed to support innovation and growth among technology businesses in Arkansas by leveraging the federal SBIR program. This initiative aims to create and retain high-tech jobs within the state.
The program offers discretionary matching grants of up to 50% of the amount of federal Phase I and Phase II SBIR grants, with a maximum of $50,000 for Phase I awards and $100,000 for Phase II awards. The funds are provided on a reimbursable basis, payable upon submission of invoices and financial reports to the Division.
Eligibility Requirements: To be eligible for the program, applicants must have been awarded a federal SBIR grant.
Area Served: The SBIR Matching Grant Program is available to businesses throughout Arkansas.
Business & Technology Accelerator Grant
The Business & Technology Accelerator Grant is a program offered by the Division of Science and Technology of the Arkansas Economic Development Commission (AEDC) to stimulate innovation and growth among the state’s next generation of technology businesses. The program partners with established Arkansas technology-based companies to mentor start-up companies.
The discretionary program may provide grants of up to $250,000 to sponsor business and technology programs that mentor start-up companies. The funds are intended to stimulate corporate growth through the infusion of innovative ideas, products, and services, create high-skilled, high-wage jobs, and foster economic growth by linking entrepreneurs and start-ups with corporate sponsors.
Area Served: The Business & Technology Accelerator Grant is available to companies throughout Arkansas.
Pitch ‘N Pint (Central Arkansas)
The Venture Center’s annual Pitch ‘N Pint is a Shark Tank-style pitch competition that offers entrepreneurs from the community an opportunity to showcase their startup ideas, products, or working businesses. The event provides a platform for participants to compete for a grand prize of $2,000.
The grand prize for the Pitch ‘N Pint competition is $2,000. Participants can use the prize money to support their startup ideas, products, or working businesses. The event also serves as an opportunity for entrepreneurs to network with other like-minded individuals and potential investors while enjoying a drink.
Eligibility Requirements: Anyone can sign up to pitch their startup idea, product, or working business at the Pitch ‘N Pint competition.
Area Served: The Pitch ‘N Pint competition is open to entrepreneurs from the Central Arkansas community.
Black Ownership Grants
ReMix Ideas, in partnership with Advancing Black Entrepreneurship (ABE), offers the Black Ownership Grants program to support Black-owned businesses in Arkansas. The program aims to remove barriers faced by Black entrepreneurs and create pathways for intergenerational wealth.
The Black Ownership Grants program provides up to $5,000 and a one-year mentorship to eligible Black founders in Arkansas. The grants are awarded to a different Black-owned business every month, helping to interrupt cycles of intergenerational poverty and disrupt inequitable systems.
Eligibility Requirements: To be eligible, companies must be Black-owned, for-profit, legally registered, and have been in business for at least one full year. The owner must be at least 18 years old.
Area Served: The Black Ownership Grants program is available to Black-owned businesses located in Arkansas.
Other Small Business Grant Programs
Small Business Grants for Anyone
In addition to small business grants that are only for Arkansas small businesses, there are several grants for businesses across the U.S. There are more opportunities, but this also means there is more competition. Some popular programs include the Fast Break for Small Businesses, the FedEx Small Business Grants Program, and the SBIR/STTR Grant Programs. In addition, you can find all federal grants at no cost at Grants.gov.
Small Business Grants for Women
Many organizations, both private and public, offer grant programs and mentoring specifically tailored to women-owned businesses. Some popular popular programs include the Amber Grants for Women, the EmpowerHER program, and Ladies Who Launch,
Small Business Grants for Minorities
Several small business grant programs for minorities, such as the Wish Local Empowerment Program, National Black Business Pitch, and NAACP’s Powershift Entrepreneur Grant, provide financial support and guidance to help minority entrepreneurs start, grow, and sustain their businesses.
Small Business Grants for Veterans
Veteran-focused small business grant programs, like the Second Service Foundation Program, Warrior Rising Program, and Stephen Tadlock Veteran Business Grant, offer financial assistance and advice to support veteran entrepreneurs in starting and growing their businesses.
Before Applying For Any Grants
There are many scams that try to take advantage of people who are looking for money to start their businesses. So, before applying to any grant programs, it’s a good idea to make sure they are legitimate and to get a second set of eyes on your application to make sure it’s perfect. Fortunately, there are a number of business assistance programs in Arkansas that are available at no cost, most notably the Small Business Development Center (SBDC) and SCORE.
