Foundations, for example, normally fund nonprofit organizations that qualify for public charity status under section 501(c)(3) of the Internal Revenue Code. These nonprofit organizations are usually charitable, educational, scientific, religious, literary or cultural in nature.
The government grant program designed to fund for-profit businesses is called the Small Business Innovation Research Program (SBIR). Small businesses with strong research capabilities in science and engineering that are currently doing high quality research and development are the most likely to compete for funds to continue their research. The program is not an assistance program for small business – it is highly competitive and merit-based.
Washington State grants are limited to the Child Care Advantages Program. The Child Care Facility Fund is available to all licensed childcare providers. Another state is the Washington Technology Center, which offers the Entrepreneur’s Access (EA) Program.
Sometimes corporations offer seed money programs aimed at encouraging entrepreneurs.