Government Grants for a Struggling Small Business

Image by, courtesy of Randen Pederson

The government realises that for the economy to be successful, small businesses must be successful to stimulate the economy. Some small businesses run into hard times and struggle to keep operating. Government grants are available for these small businesses to help the struggling business become a successful business.

Struggling businesses must meet the same requirements as any other small business applying for government grants, but may have an advantage when pertaining to need-based government grants.


There are many reasons why a small business struggles, including demographics. Certain products and services tend to sell more in one area vs. another, because more of a certain a group, gender group or race that uses the product or service lives in that specific area. Some businesses do not do well because of the size of the town, and the profit can be small as a result. For the businesses who struggle to remain open in small towns, the government offers grants for to small businesses that are opened or existing in small towns, to maintain job security and increase consumer spending in that small town.

Benefits for Struggling Small Businesses

Struggling small businesses are typically placed at the top of the list when it comes to grants awarded solely on the basis of financial need. Those businesses that have the potential to be successful, but may run into a tough time because of the economy or other financial setbacks. The small business must meet other government grant requirements, outside of expressing a financial need, such as being owned or operated by a legal U.S. citizen older than age 18.

Business Considerations

The Small Business Administration assists small businesses, even those that are struggling, access government grants that are typically unavailable to the public. In addition to accessing grants, the SBA can assist the struggling business with restructuring a business plan, or a new direction to take the business in to make it more successful.


The government grants for struggling small businesses can be used for developing new strategies, products and services that can help prevent the company from struggling in the future. The grants can be smaller than £325 or larger than £130,000. The government grants can help cut out-of-pocket expenses, or increase profits.


A small business should not be under the misconception that applying for a government grant guarantees the business will be awarded the grant just because the business is struggling. If another businesses is doing particular well, the government grant agency does not automatically award the grant to the struggling business. However, if the struggling business is awarded the grant, the funds are not awarded to the business immediately. Some application processes last up to nine months before the grant is awarded. A small business owner should not wait until the doors to his struggling business are going to be closed before he applies for a government grant.