Female Entrepreneurs Can Take Advantage of Grants and Tax Credits to Fuel Their Business
According to the National Woman’s Business Council, there are over 10 million women-owned businesses; these have contributed to the creation and/or maintenance of 16% of US jobs.
Despite this impressive figure, women still face more challenges securing access to capital than their male counterparts.
Luckily, there are tools and resources that female founders can take advantage of to grow their business. Some of these resources include grants and tax credits.
Make sure you subscribe to learn about tips for women in manufacturing and more.
What are Grants?
You’ve taken steps to plan the dream of your business venture, but now you need the funds to get started. Grants can help you do that, but what are grants?
When an organization like a government, foundation, or corporation gifts funds, that is considered a grant. If you receive a grant, you aren’t expected to pay back any of those funds.
Be aware that you can’t simply use grant funds however you want. Most grant programs only gift funds for a specific purpose, and you must use the money in the manner intended.
While you’ll need to submit an application and go through an evaluation process to win these funds, these steps can be worth the effort.
While grants are awarded to all types of businesses and non-profits, some are specifically designed for minority-owned enterprises. Let’s take a look at a few of those now.
Grants Available for Women-Owned Businesses
Below, you can see a short list of grants that are available to female entrepreneurs:
- Amber Grant
- IFundWomen Universal Grant Application Database
- HerRise Microgrants
Let’s take a closer look at these grants and see if they could be a good fit for your business.
Amber Grant
Worth $10,000 each, three Amber Grants are awarded to women-owned businesses every month. These grants are given to:
- A startup
- A business in a specific industry that rotates monthly
- A general small business
What’s even more exciting is that if your business were to win one of these monthly grants, you could be eligible to receive one of three $25,000 annual grants.
IFundWomen Universal Grant Application Database
Unlike the Amber Grants, IFundWomen isn’t one specific grant. Instead it’s a grant marketplace specializing in funding for women-owned businesses.
When you submit the details of your venture to IFundWomen, the database will match your information to a partner’s grant match criteria. If your business meets the grant criteria, you’ll invited to apply for the funds.
HerRise Microgrant
Offered by the Yva Jourdan Foundation, HerRise Microgrants applications are accepted on a monthly basis. These grants are worth $1,000, and your business must be at least 51% woman owned and have less than $1 million in gross revenue.
What are Tax Credits?
As a taxpayer, you can use a tax credit to reduce the amount of tax you owe. Like grants though, every tax credit has set criteria that you must meet before you may use it.
Tax Credits Available for Women-Owned Businesses
Below you can see a list of tax credits that could benefit your business:
- Small Business Health Care Tax Credit
- Child and Dependent Care Tax Credit
- Federal Research and Development (R&D) Tax Credit
The Small Business Health Care Tax Credit is for employers paying their employees’ health insurance. To be eligible for this credit, you must employ less than 25 full-time employees and pay less than $54,000 per employee.
Working parents will be relieved to hear that with the Child and Dependent Care Tax Credit, you could receive a maximum credit of $3,000 for one child or dependent.
If your business focuses on new product development, like food manufacturing or biotech, you could be eligible for a Federal R&D Tax Credit. A Federal R&D Tax Credit can be worth 7-10% of qualified research expenses.
When you’re ready to apply for a Federal R&D Tax Credit, it’s best to speak with an R&D tax credit specialist, so you can be sure that you’re not missing an vital elements.
Women-Owned Businesses Can Take Advantage of Grants and Tax Credits
While women-owned businesses are a powerful force in the US economy, female founders have historically struggled to receive funding. With resources like grants and tax credits, women can become more self-reliant and grow their businesses.
While small businesses can take advantage of microgrants programs, women-owned businesses that develop new products could qualify for a Federal R&D Tax Credit.
Contact an R&D tax credit expert today to see if your business qualifies for this credit.