Could You Get Free Money to Start a Small Business?

Starting a small business is a dream that many people share. However, one of the biggest obstacles that aspiring entrepreneurs face is securing the funding necessary to get their ventures off the ground. The good news is that there are different funding options available, including free money. Here are the most common ways to get money for your business that you don't have to pay back.

Grants

Different government entities, nonprofits, and corporations offer grants that are designed to help small businesses get started. These funds can be used for a variety of expenses, including equipment, research and development, and marketing.

However, to qualify for a grant, you need to have a solid business plan, and you must meet specific criteria set forth by the grant-giving organization. Visit Grants.gov to learn more about government grants. Do your research and determine which organizations offer grants that align with your company's goals and mission.

Crowdfunding

Crowdfunding platforms like Kickstarter and Indiegogo allow you to raise money for your small business by asking people to donate to your business or cause. This method requires a lot of marketing and outreach, but it can be an effective way to raise the capital you need to get started.

For example, the GoFundMe Small Business Relief Fund offers qualifying small businesses a $500 match if they have been impacted by COVID-19 and raise at least $500 through a GoFundMe campaign.

Contests

Many companies and organizations run contests designed to help entrepreneurs start their businesses. These contests can be a great way to get exposure for your business and win some funding in the process.

Why a Business Credit Card Could Transform Your Small Business

These business credit cards that offer a convenient and efficient way to separate personal and business expenses, simplifying accounting and tax reporting.

Additionally, business cards can provide valuable perks such as rewards points, cashback, and expense tracking tools, enhancing financial management and the potential to help save money in the long run.

Offer	Our Rating	Welcome Offer	Rewards Program	APR
Ink Business Unlimited® Credit Card Apply Now for Ink Business Unlimited® Credit Card On Chase's Secure Website.	Rating image, 4.50 out of 5 stars. 4.50/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor	Earn $900 bonus cash back Earn $900 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening.	Earn unlimited 1.5% cash back on every purchase Earn unlimited 1.5% cash back on every purchase made for your business	Intro: 0% Intro APR on Purchases Purchases: 0% Intro APR on Purchases, 12 months Balance Transfers: N/A Regular: 17.99% - 23.99% Variable
Ink Business Cash® Credit Card Apply Now for Ink Business Cash® Credit Card On Chase's Secure Website.	Rating image, 4.50 out of 5 stars. 4.50/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor	Earn up to $750 bonus cash back Earn $350 when you spend $3,000 on purchases in the first three months and an additional $400 when you spend $6,000 on purchases in the first six months after account opening.	Earn 5% cash back in select business categories Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year. Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other card purchases with no limit to the amount you can earn.	Intro: 0% Intro APR on Purchases Purchases: 0% Intro APR on Purchases, 12 months Balance Transfers: N/A Regular: 17.99% - 23.99% Variable
Capital One Spark Cash Plus Apply Now for Capital One Spark Cash Plus On Capital One's Secure Website. Rates & Fees	Rating image, 5.00 out of 5 stars. 5.00/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor	$2000 Cash Back $2000 Cash Back once you spend $30,000 in the first 3 months. Earn an additional $2,000 cash bonus for every $500K spent during the first year	2% - 5% cash back Earn unlimited 2% cash back for your business on purchases, no limits or category restrictions; plus, earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel.	Intro: Purchases: N/A Balance Transfers: N/A Regular: N/A

One example is the U.S. FedEx Small Business Grant contest, where small businesses compete for $30,000 grants to enhance their businesses. The competition can be fierce, and you need to have a solid business plan or project proposal, and a unique idea to stand out from the crowd.

Angel investors

Angel investors are wealthy individuals who invest in businesses in exchange for a share of ownership. These investors can provide significant funding to get your small business off the ground, but you need to be prepared to give up some control of your company in the process.

AngelList is a popular website that has a large database of angel investors and startups. You can filter your search by location, industry, and more. Do your research to find the right potential investor match for you.

There are many ways to secure free money to help start your small business. From grants to pitch competitions to crowdfunding, you have a lot of options to explore. Of course, each of these methods has its pros and cons, and not all of them will work for every business. But with a little research and creativity, you may be able to find the funding you need to start your own business. Keep searching and you'll likely find some free money to help you turn your small business dream into a reality.