Your Business Resource for Greenville Metro and Upstate South Carolina

The U.S. Small Business Administration's (SBA) South Carolina office receives calls every day from emerging and small business owners looking for grants. Troll the web, and you'll find a plethora of ads for "business grants." But the truth is the federal government does not provide grants to individuals, and there are very few organizations that actually do.



A handful of private foundations have an application process for companies or non-profits seeking grant funding. The Kauffman Foundation provides some grant funding for entrepreneurship initiatives underway by nonprofits. The Mary Reynolds Babcock Foundation provides grants for Southeastern non-profits whose mission is to help move people out of poverty conditions. The Pew Charitable Trusts partner with organizations to solve major problems, such as environmental, health or financial issues.

Dave Mueller, director of the Appalachian Development Corporation, says there is very little in the way of public grant funding. On the governmental side, small businesses usually cannot apply for grant funding; however, they may take advantage of low-cost or no-cost services provided through organizations that can apply for grant funding. For example, the U.S. Department of Agriculture/ Rural Development provides money for public and non-profit organizations through its Rural Business Opportunity Grants and Rural Business Enterprise Grants programs. Organizations can use the money to provide training or other assistance to small businesses in rural areas. Recently the USDA awarded the SC Manufacturing Extension Partnership grants to provide entrepreneurial training and microloans to residents in Fairfield, Darlington and Marlboro counties.

SBA's staff direct business owners who visit its South Carolina office in downtown Columbia to resources from entrepreneurial training to loans. Although the SBA does not originate loans, it does guarantee loans provided through qualified banking lenders. "The first step for any entrepreneur or aspiring entrepreneur is to visit his local community bank to inquire about small business loan opportunities," says Elliott Cooper, district director of SBA's South Carolina District Office. When approved for a small business loan through a lender, SBA will work with the lender to provide a 75-85 percent loan guaranty through its 7(a) Loan Program. This reduces a lender's risk and makes it more willing to loan the funding necessary for business start-up or expansion. Cooper warns that lack of a business plan won't get you very far. "We connect small business owners with SCORE and SBDC [Small Business Development Center] to provide business plan development assistance," Cooper explains. "An entrepreneur must think through the process and have a roadmap before approaching a lender."

SBA also provides assistance to qualified business owners searching to secure federal government contracts for services and goods government agencies need. For any entrepreneur, the first step to discovering all statewide resources available is to contact SBA and ask for its "Small Business Resource Guide," a publication packed full of financial and training sources.

"We direct people to the SBA; they're a portal to other areas that help with small business needs," says Chris Segars, grants professional for the City of Columbia.

In the Upstate, Michelin Development provides loans to small and mid-sized businesses who qualify. These small loans aim to spur economic development through job creation in the Upstate. Companies can use loan funds to purchase capital equipment, improve business processes and marketing and as a source of working capital.

Don't overlook loan sources such as the Appalachian Development Corporation (ADC) and USDA/Rural Development, who both provide loans to small businesses. ADC mostly provides loans to the six Upstate counties it serves, loaning from a few thousand up to $200,000. USDA provides loans two ways: to non-profit organizations who then re-loan the money to entrepreneurs at attractive interest rates and by providing a microloan program for businesses in rural areas.