Sustainability Grants for Small Businesses
Environmental, Social, and Governance (ESG) is currently undergoing a transformative shift. While there has been a notable uptick in companies and business leaders prioritizing ESG in recent years, 2023 presented a few setbacks. While mentions of ESG on earnings calls have declined to their lowest levels since 2020, executives maintain their dedication to addressing the issue. With the issue taking on a more political tone, companies are getting creative with their wording to reaffirm their dedication to these concerns. Both large corporations and small businesses are taking proactive steps to tackle climate issues and embrace the ongoing transition towards a green economy and sustainable energy.
Sustainability remains a key factor for consumers when deciding what to buy. A survey from PwC highlights how consumers are dedicated to supporting sustainable brands, products, and services. According to the survey, a significant majority of respondents (70%) expressed their willingness to pay extra for goods that are produced sustainably. There is a growing trend among consumers to align their purchasing power with their social values. The survey conducted by PwC indicated that when it comes to sustainability, Millennials and Gen Z are the most likely to increase their spending.
With over 33 million small businesses in the United States, Main Street plays an important role in local communities and the economy. Business owners are increasingly recognizing the importance of sustainability, not only to attract consumers who care about the environment but also to reduce costs and streamline operations.
For many business owners, a lack of capital stands in the way of making their company more sustainable. There are a variety of programs, grants, and tax incentives available for small business owners to tap into as they strive to reach their sustainability goals. From government agencies at the federal, state, and local level to non-profit organizations, and corporate foundations, there are many ways business owners can explore funding opportunities to take action towards becoming more environmentally responsible.
National Grants and Funding Available for Small Businesses
Government agencies are one of the top distributors of grants for small businesses. In fact, the Environmental Protection Agency awards more than $4 billion in funding every year to various entities. Check out grants.gov for a comprehensive list of grants administered by the government.
1. Environmental Protection Agency (EPA) Small Business Innovation Research (SBIR) Program
The EPA SBIR program provides funding for small businesses to develop and commercialize innovative environmental technologies.
2. National Science Foundation (NSF) Small Business Technology Transfer (STTR)
The NFS STTR program provides funding to small businesses for research and development project that have the potential to lead to new products, processes, or services.
3. U.S. Department of Energy (DOE) Office of Energy Efficiency and Renewable Energy (EERE) Advanced Manufacturing Office (AMO)
The AMO program provides funding to small businesses for research and development projects in advanced manufacturing technologies.
4. USDA Rural Energy and America Program (REAP)
REAP provides grants and loans to rural small businesses to purchase and install renewable energy systems and make energy efficiency improvements.
5. Sustainable Agricultural Research and Education (SARE)
The SARE program offers grants to farmers and ranchers for sustainable agriculture practices, including renewable energy and energy efficiency.
State Grants for Small Businesses
In addition to federal grants, there are also many state and local grants available to small business that are working to improve the environment. Investigate state and local grants and funding opportunities to see what support is available for businesses in your region.
1. The New York State Energy Research and Development Authority (NYSERDA)
The NYSERDA program offers a variety of funding opportunities for businesses in New York State to implement energy efficiency and renewable energy projects.
2. California Climate Investments
This program provides funding for projects that reduce greenhouse gas emissions and improve energy efficiency. Business can apply for funding for a variety of projects, including energy efficient retrofits, renewable energy projects, and sustainable transportation projects.
3. Massachusetts Clean Energy Center (MassCEC)
The MassCEC provides funding for a variety of clean-energy projects, including environmental justice, carbon reduction, clean transportation, and more.
Grants are a valuable source of funding for small businesses, allowing them to access the capital and resources needed to maintain their business operations and ensure sustainability. Business owners are increasingly understanding the benefit of environmentally friendly practices for their brand, customers, workers, and the world, creating a healthier and more sustainable planet.