Obtaining money for a startup business can be a challenge. Sometimes a business that cannot obtain a conventional loan can win a grant. Finding a grant is difficult, but not impossible. There are many foundations in Northeast Ohio that will contribute to a startup business. Foundations look for companies that will achieve both business success and provide opportunities for residents.
Charter One and Ohio City Partnership
Charter One Bank has partnered with Ohio City to award grants to new small businesses in Northeast Ohio. The grants range between $3,000 and $15,000. In the first year of the program, the grants were awarded to a diverse group of companies. The bank and community group award grants to winners of a competition. The funds are used for diverse business expenses including rent, business machines and decor. The Ohio City Near West Development Corp. and Charter One Foundation earmarked $40,000 in grants. The contest attracted 29 applications. The contest lasted three weeks.
Nonprofit Grants
Northeast Ohio is fortunate to host several nonprofit organizations that receive funds from the Ohio Third Frontier Commission and then use them to provide grants to local startup companies. There are several nonprofits that funnel the funds to local businesses. The Cleveland Clinic Foundation has received funds that it used to invest in local companies. JumpStart Inc. also used these funds to help startup companies. Finally, the North Coast Angel Fund II invests funds into local technology companies.
Innovation Fund of the Lorain County Community College Foundation
Lorain County Community College grants startups through the college's Innovation Fund. The fund is geared toward supporting high-tech startup businesses. The fund supports new companies through a partnership of government officials, college professors and state development experts. The goal of the foundation is to create jobs in Northeast Ohio. The Innovation Fund awards grants of up to $100,000 to startup companies. To receive a grant, the company must reside in Northeast Ohio. The partnership helps new companies vet business concepts and technology.
Warnings
Many foundations that award grants to startup businesses depend on the performance of investments in endowments. Unfortunately, the stock market, bond market and private equity investments do not always appreciate in value. For example, Yale University's endowment fund, which funded approximately 30 percent of the school's budget, took a massive hit following the financial meltdown. Many foundations had similar losses. The worse an endowment performs, the lower the grant money it can award. Businesses should not bet on grant awards year after year.
Tags: Northeast Ohio, award grants, Innovation Fund, Ohio City, startup companies, Community College
