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Are you an entrepreneur with a disability? According to the CDC, the term disability refers to a physical or mental impairment that makes it difficult for you to participate in certain activities or interact with the world around you. This includes many physical and mental conditions. If you have a disability and are looking to start a business or fund a side hustle, there are a variety of funding resources available to you.
Grants for entrepreneurs with disabilities
Federal Grants
The federal government offers a variety of grants, many of which don’t have to be paid back, to people starting new businesses. The best place to look for federal grants is Grants.gov, a constantly updated clearinghouse that helps people seeking funding find resources.
The Small Business Administration (SBA) also publishes grant listings, as does the Department of Health and Human Services. Entrepreneurs with disabilities should be aware of these listings, but eligibility requirements vary and in most cases, these grants are open to all business owners, making them highly competitive.
Transforming business grants
The Transform Business Grant is open to U.S. applicants who are members of “systemically marginalized groups,” including people with disabilities. The $1,000 grant also includes a one-year, development-based mentoring program where recipients receive free leadership training. To be eligible, applicants must be members of a marginalized group, their business must align with Transform’s mission, their business must be social impact-oriented, and they must be financially disadvantaged.
NASE Growth Grant
The National Association for the Self-Employed (NASE) is offering $4,000 business grants to help entrepreneurs expand their businesses. Grant funds can be used for marketing, advertising, hiring employees, expanding facilities and other important business needs. To be eligible for the grant, applicants must become NASE members ($120 per year) and submit a statement of grant use, a business plan, recent tax returns and other documentation that describes the structure of their business.
NAACP and Leslie’s Certification Boost Grant
This funding opportunity is designed to help entrepreneurs obtain business certifications, including Disability-Owned Business Enterprise (DOBE) certification. The grant program will provide $5,000 to urban and rural small business owners in Arizona, California, Florida, Georgia and Texas. To be eligible, businesses must be located in one of these states, be at least 51% owned by people with disabilities and operate in the food or consulting industry.
Feed the Soul Foundation
Through its Restaurant Business Development Grant Program, Feed the Soul Foundation is offering $10,000 grants and six months of business consulting to entrepreneurs launching culinary businesses. To be eligible, a business must be 51% owned by a person who identifies as marginalized, located in the United States, have four or more employees, and be willing to participate in weekly training.
Additional resources
If you’re looking for other grant opportunities and additional resources for your business, keep an eye on GrantWatch , a clearinghouse for fundraising opportunities to support a range of charitable causes. It’s also worth looking into the National Arts and Disability Centre , which publishes and updates a list of resources for people with disabilities.
Loans for entrepreneurs with disabilities
Federal Loans
SBA 7(a) Loans
The U.S. Small Business Administration’s 7(a) loans provide funding of $50,000 to $5 million to existing businesses with fewer than 100 employees or partially funded start-ups that need a larger loan to expand. They help small business owners from underserved groups, including people with disabilities. These funds can be used for vehicle purchases, inventory, equipment, working capital, marketing, expansion, and more.
SBA Microloans
The average microloan is $13,000, but the SBA offers up to $50,000 to small businesses and certain nonprofits. You can get up to $50,000 in loans to hire staff, renovate workspace, and more, but these loans may require personal collateral. (For non-SBA microloans, check out the Association for Enterprise Opportunity or try AEO’s DreamFund, which aims to address funding gaps in underserved communities.)
SBA Express Loan
SBA Express Loans are similar to 7(a) loans, but are usually faster and have lower limits (up to $500,000). The SBA guarantees 50% of the loan, and a private lender funds the rest. Interest rates and repayment terms are usually set by the private lender.
USDA Business Loan
The United States Department of Agriculture (USDA) supports rural businesses and is a good source of funding because many Americans with disabilities live in rural communities. The most popular USDA program is the Business and Industry Loan Guarantee Program, which partially guarantees loans to rural businesses in towns with a population of fewer than 50,000. To qualify, you must have good credit and sufficient business revenue, and collateral may be required.
CDFI Loans
Community Development Financial Institutions (CDFIs) are private organizations that invest in businesses, typically in disadvantaged areas. Many CDFIs use Disability Fund Financial Assistance (DF-FA) to lend money to organizations and businesses that serve people with disabilities.
Assistive Technology Business Loan
These are suitable for people with FICO scores below 550. Lenders are often local agencies, like the National Disability Institute, which offers assistive technology loans of up to $30,000 at below-market interest rates to New Jersey and New York residents. Credit history may affect eligibility.
StreetShares Short-Term Business Loans
StreetShares is a short-term lender that offers business loans to veterans and disabled veterans. Small businesses must have low revenue and have been in business for at least one year. They must also have a personal credit score of 600 or higher. Long-term loan amounts range from $2,000 to $100,000, and you can receive up to 20 percent of your annual business revenue.
Related: 5 of the Best and Fastest Loans for Small Businesses
Axion Opportunity Fund
Accion Opportunity Fund, a nonprofit community lending institution, offers small business loans ranging from $5,000 to $250,000. They can help with the cost of assistive technology, accessible workspaces, and adaptive work vehicles. Loans must be guaranteed by the business and often require a personal guarantee. Requirements vary by location.
Related: How I Became a Successful Entrepreneur Despite Dyslexia
Loans by State
Many states have loan programs that help business owners with disabilities. For example, Advantage Illinois and Iowa Able Foundation offer business assistance loans and credit-building loans, respectively. To combat the high cost of assistive technology, the Maryland Department of Disabilities operates the Assistive Technology Guarantee Loan Program, which offers eligible state residents low-interest loans for everything from cars to home improvements. In some cases, voice recognition software can help cover the start-up costs of a small business. It’s always important to check local resources.