Building Resilient Businesses Contest Kapitus Small Business

Help Kapitus Award $250,000 in Cash Prizes to Deserving Business Owners!

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Kapitus is excited to announce the finalists for its inaugural, $250,000 Building Resilient Businesses contest after weeks of painstakingly judging over 300 video submissions. The contest was launched this summer as a way for Kapitus to give back to the small business community, which represents the backbone of America’s economy and personifies the American Dream of hard work, sacrifice and success. 

The submissions, which came from small businesses scattered across 37 states and the DC metro area, were all distinct and well-thought-out, but 15 videos stood out for their passion, storytelling, creativity, and the ways in which they would use the first-place prize of $100,000 to benefit and grow their businesses. 

Now that the 15 finalists have been chosen, Kapitus is relying on you, the public, to vote on which of the finalists should be included among the 7 winners of the competition.

Vote for your favority business

The prizes are: 

  • 1st place (one winner): $100,000
  • 2nd place (one winner): $50,000
  • 3rd place (five winners): $20,000
  • All winners will be given a complimentary, 8-hour consulting/advisory session to help them with their businesses. Advisory sessions are available in digital marketing, financial management and data analytics.

The finalists’ videos were chosen by members of Kapitus based on their storytelling, creativity, enthusiasm and the ways in which they would use the $100,000 for their business, but members of the public can use whatever criteria they see fit when voting. To vote for your favorite, please go to https://kapitus.com/brb-vote/, carefully watch the videos, and select the one you believe stands out above the rest. Only one vote is allowed per person and voting is open from Monday, September 19, 2022 through Monday, October 10, 2022

Please help us congratulate the 15 finalists (listed in reverse alphabetical order): 

  1. The Tree Yoga Cooperative – South Los Angeles, CA – Black & Latina-Owned hub of holistic wellness and community support. We provide accessible, inclusive, trauma-informed and culturally centered yoga classes and training to all body types, abilities and ages.
  2. the Enchanted Rose Emporium – Vancouver, WA – Providing a unique collection of vintage style gifts and craft supplies emphasizing sustainability and teaching classes in the handcrafting skills of yesterday to children and adults – preserving these art forms.
  3. TFTI Experience – Houston, TX – Houston’s original photo experience. 15+ creative installations for jaw-dropping photos including Infinity Mirrors, LOVE Letters, Upside Down room, DJ Confetti Room and more. TFTI has something fun for everyone.
  4. Superfit Hero – Los Angeles, CA – Superfit Hero is the world’s most inclusive line of premium plus size activewear for women, with sizes L-7XL. Fitness is for Every Body.
  5.  Strands of Faith – Pearl, MS – SOF is a conscious beauty brand curated and formulated with cruelty free rich ingredients to nourish, restore, and refresh textured strands while increasing moisture-length retention and overall healthy hair.
  6. Stir it Up – Fairbanks, AK – Inspired by a little boy with allergies and a town lacking options, Stir It Up provides options for your dietary lifestyle, guaranteed. A women-owned company specializing in gluten-free, vegan, vegetarian & low-carb options.
  7. Postal Petals – West Hollywood, CA – A new way for people to enjoy the beauty of flowers through the experience of arranging them. Fresh-cut flowers are shipped nationwide for customers to create their own DIY floral arrangements.
  8. Play Pits – Atlanta, GA – 100% all-natural deodorant, free of aluminum, parabens, synthetic fragrances, and harsh chemicals. Play Pits is a mother’s solution to providing a kid-friendly, all-natural hygiene option for youth with active lifestyles.
  9. Monolith Games – Siloam Springs, AR – A small husband- and wife-owned board and card game shop. We have created a safe space where people can hang out, play games, and above all – be themselves.
  10. Kai’s Kookies – Houston, TX – Specialty bakery offering low-carb gluten-free treats with no added sugar. Inspired by a father and daughter who recreated their baking style due to allergies and a commitment to improving health.
  11. Frères Branchiaux Candle Co – Indian Head, MD – Frères Branchiaux Candle Co. is a mission-based company that creates vegan fragrance products. Founders Collin, Ryan, and Austin Gill have donated $40K to homeless shelters through sales of their products.
  12. Fat Lady Cakes – Amherst, NY – Fat Lady’s Cakes and Pies specializes in the creation of gourmet desserts made from all-natural ingredients. From classics to new innovations, we offer a full range of flavorful treats.
  13. Courtside ATL – Lithonia GA – Creating VIP basketball experiences where anyone can participate, by deconstructing the game into: Shoot, Dribble & Pass. We employ tech features to transform, gamify and transfer content for elevated experiences.
  14. Brash Brownies – Winston-Salem, NC – A mobile, black woman-owned, bakery with small batch desserts based on old family recipes and innovative imagination. Brash Brownies is bringing Louisiana culture to North Carolina.
  15. Black People Will Swim – Long Island, NY – Smashing the stereotype that Black people don’t swim, Black People Will Swim is based on four foundational pillars encouraging people to F.A.C.E. (Fun. Awareness. Community. Education) their fears.

Official winners will be announced by October 28, 2022.

(Originally Published September 19, 2o22)

Kapitus small business rent crisis lending

Small Business Rent Crisis: What You can do to Survive

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Small businesses, facing a markedly different world than the one they faced at the height of the COVID-19 pandemic, are getting hammered by rising rents and demands for back rent payments. Rising inflation, employee shortages, rent increases and federal pandemic relief funding running dry have all contributed to 40% of small businesses in the US not making the rent in August 2022, according to Alignable – up from 33% in March. Another 45% of small businesses said that their rent has increased since 2021.

This has become an urgent crisis for Main Street businesses in virtually every industry that operates out of physical locations. Small agricultural businesses, independent restaurants, nonprofits, automotive dealerships, and the travel/lodging industry have been hit the hardest, with 50% of agricultural companies and 46% of restaurants missing their rent payments in August 2022. 

Small Business Kapitus lending rent crisis Alignable

Roughly 40% of small businesses missed their rent payment in August 2022, according to Alignable.

What can Small Businesses do?

If your small business has missed a rent payment or if you are struggling to figure out how you’re going to meet your next rent payment, your options obviously aren’t great. There are, however, some steps you can take to try to help ease your situation. 

Kapitus spoke to Stephen Cameron, president and founder of Level On Demand, a real estate services company that provides small businesses with real estate services such as contract reviews and property analysis. Cameron, a 20-year veteran of the commercial real estate market, shared his advice on how to deal with the current rent crisis.

#1 Know Your Landlord’s Situation

Before you try to negotiate with your landlord on missed or late rent payments, it’s important to first research whether the landlord is even allowed to compromise. Commercial real estate spaces are often owned by investment funds such as hedge funds or private equity firms, or even by pension funds or family offices. 

Hedge funds and private equity firms often require their landlords to enforce lease agreements to the letter with no room for negotiation, while a family office or pension fund will see some payment as better than nothing. If this is the case, you may want to consider moving your business to another space altogether.

#2 Read Your Lease Carefully!

If you informed your landlord that you’re going to be late on your next rent payment, it’s important to

Kapitus Small Business Real Estate Stephen Cameron Level On Demand rent crisis

Stephen Cameron, president of real estate consulting firm Level On Demand, stressed that small businesses should know their lease agreement before negotiating with their landlord.

read your original lease agreement, as most agreements do contain a grace period to make the payment on time. Often, these grace periods are three- to five days, and sometimes can even be up to 15 days. 

“The more important part of the lease to check is how many days you – as a tenant – have before you’re in default,” said Cameron. “This is much harder to recover from than just making a late payment. 

Cameron also stressed the importance of notifying your landlord in writing if you know you’re going to be late with rent, let them know you’re going to make that payment and see if it’s possible to negotiate late fees, as many landlords would rather avoid going through the hassle of looking for a new tenant. 

“If you have missed your payment deadline and any grace period, in most cases it is to your advantage to make written contact with your landlord as soon as possible,” said Cameron. “Sometimes it’s easy to forget that, in many cases, landlords are not large corporations, but just people who have a mortgage to pay and just want everything to work out with minimal problems.”

#3 Can You Negotiate Late Fees?

Negotiating late fees often depends on the goodwill of your landlord, because those fees are usually spelt out in your lease agreement. According to Cameron, these fees can range from 5% to 15% of one month’s rent, and a tenant won’t be in good standing with the rent until the full rent and late fees are paid. Cameron warned that “This is a commercial space, not a house; the eviction process is not as friendly here.”

Eviction rent crisis small business Kapitus Stephen Cameron Level On Demand

Negotiate with your landlord early, as the eviction process for small businesses is a lot harsher than for residential properties.

He also emphasized that it’s important to negotiate late fees and a grace period before you sign a lease. “For anyone contemplating signing a new lease right now, who may be concerned they will need a longer grace period, there are options,” he said. “Especially in the case of new, seasonal or sales-dependent businesses, negotiating with a landlord to get a few ‘freebies’ or months per year in which rent can be paid late without a penalty or fee is not out of the question. Just be prepared for a landlord to ask for something in return.”

#4 How do you Negotiate Your Lease?

If you are looking for a lower rent but don’t want to move, one strategy you may want to consider is negotiating a new lease with your landlord. 

This isn’t going to be easy because landlords, like small businesses, felt the brunt of the economic impact of the pandemic. Many small businesses could not pay rent for months during the height of COVID, and many more still owe back rent.

Before you attempt to negotiate, Cameron suggests trying to gauge whether your landlord is in good shape or hurting financially before you negotiate a new lease. 

“There are a lot of motivations, financial and otherwise, in play these days, so asking for a reduction in rent or to keep it at its previous rate is very common right now,” he said. “I’m seeing tenants across the country having more success negotiating down their base rental rates in exchange for increases on their variable expenses, such as common area maintenance, utility reimbursements, etc.”

#5 Consider a WFH Arrangement or Shared Space 

Obviously, a working from home arrangement isn’t an option for businesses such as independent

Kapitus Level On Demand small business lending

Many small businesses have turned to shared workspace arrangements to mitigate rising rents.

restaurants and small construction companies. However, if your business operates out of an office, working from home or even moving to a cheaper, shared space through companies such as Industrious or Regus can be a much more cost-effective option for you, as it has become for many companies since the beginning of the pandemic.

“For smaller or more agile companies, having a dedicated mailing address may be enough,” said Cameron. “I’ve seen many of these companies supplement their occasional need for dedicated space by having company retreats at larger Airbnb homes or even reserving hotel-style conference rooms.” 

#6 Is it Worth Buying Your Property?

If you believe you can save enough for a down payment and can afford to wait until interest rates come down again, there are definite advantages to purchasing the space in which your business is housed outright. The biggest being that (depending on the purchase arrangement with your bank) your monthly payments will be fixed and never increase, and you’ll never have to beg for an extension or negotiate a lease with a landlord again. Not only will your property become an investment, but purchasing the property can also reap tax and depreciation benefits of ownership. 

There are also disadvantages of ownership, however. For one thing, it takes away your ability to easily move locations. Second, just as you are responsible for maintaining your house, you will be responsible for maintaining your business property, which can be costly. If you need a new roof or wish to re-landscape the space, you will be responsible for paying for that.

“Ultimately, the choice for a small- to medium-sized business between remaining a tenant or purchasing a property should be looked at objectively,” Cameron warned. “I’ve seen many business owners absolutely fall in love with a space that was perfect for their business but had no real value to anyone else. When it came time to move the business and find a new tenant, there were none to be found.”

#7 If you Have to Move…

As we are living in uncertain economic times, moving your business and finding a cheaper location won’t

Kapitus moving small business rent crisis Level On Demand

If you have to move your business to another location, you may have to settle for less space if you want a decrease in rent.

be easy, but if you’re unable to reach an agreement with your current landlord, you may not have a choice. 

If your business relies on local customers, you’re probably going to need a space in the same neighborhood in which you currently operate. Since you’d be seeking a space that is ideally cheaper than the one you’re moving from, you may have to consider making due with a smaller space since the commercial rent market is fluctuating right now. 

As previously mentioned, if you do move to a new space, carefully negotiate your lease with your new landlord.

Carefully Consider Your Options!

Being late on or missing your rent payment is never ideal and comes with few easy answers. The worst thing you can do, however, is to just ignore the situation. You should realize that you do have a few options, the first being to make sure you keep your landlord in the loop as to what’s going on. Carefully try to renegotiate, and in case that fails, it’s crucial to have a backup plan. 

Natural disaster

Can Your Small Business Use SBA Disaster Mitigation Assistance?

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Damage from natural disasters happens to businesses in every climate and on every corner of the United States. No business is wholly insulated from extreme weather or natural phenomena, and nothing is more frustrating than if your business suffers damage that could have been avoided. Weatherizing and mediating damage from natural disasters at your place of business is as important as any other precaution you can take. One of the major reasons small businesses may put off building improvements for the purpose of mitigating damage from natural disasters is undoubtedly the high price tag of many of those improvements. While there are several more general financing options when planning to improve your business, the SBA’s Mitigation Assistance Program – an expansion of their larger Disaster Loan system – may seem like an attractive option for making safety improvements to your business. It is then essential that small businesses understand where and when SBA-backed mitigation assistance is possible.

What is SBA Mitigation Assistance?

The SBA’s disaster mitigation assistance program allows businesses within declared disaster zones to apply for additional funds specifically for improving their businesses to better protect against future disasters. To see if your business is in a current disaster zone, use the SBA’s classifying tool. Existing disaster loans can be expanded up to 20% in the name of mitigation assistance, but the total value of the disaster loan may not exceed $2 million. There are, however, several examples of when that cap has been waived.

This means, however, that your business must first be approved for a disaster loan to qualify for mitigation assistance. Approval for a disaster loan, of course, requires that your business suffer damage because of a declared and recognized natural disaster. The SBA directly explains that if you suffer damage to not only property or leased spaces but machinery, equipment, fixtures, or even inventory, you may be eligible for disaster assistance. That means even if your damage is rather small or not immediately pressing, applying for a disaster loan could also open the door to applying for that additional mitigation assistance up to 20% of your principle.

Applying for mitigation assistance is only allowed once your business has been approved for a disaster loan of any kind. There is no additional application for mitigation assistance and applicants must call the SBA directly (800-659-2955) or speak to your already-assigned inspector. It is then up to the business owner to explain their intended mitigation project.

What Qualifies as Mitigation Improvements?

Flood Mitigation Measures: Among the SBA’s examples of viable improvements can run from comparatively small projects like sealing a roof all the way to relocating your business outside of an existing flood plain. Depending on the size of the principle of your existing disaster loan, of course, larger projects will only apply to larger cases of damage. Mitigation examples also include landscaping to improve natural drainage, installing a sump pump, converting the lowest level of your building to reduce flood risk, or even elevating your entire business.

Wind Mitigation Measures: Wind damage can be related to anything from tornados to winter storms. Especially in colder climates, it is very common for the SBA to declare a disaster where heavy snowfall and storms impede daily life. Examples of viable projects include installing pressure-rated windows or a pressure-rated garage door, investing in hurricane roof straps, or even building a full storm shelter.

Wildfire Mitigation Measures: Considering how wide west coast wildfires tend to spread, it is possible for a business to be within a declared disaster zone and not necessarily suffer catastrophic damage. Thus, the SBA gives examples of improvements like installing a fire-rated roof, replacing combustible fences or gates, removing debris brought about by the wildfire, installing tempered-glass window panes or mesh screens to prevent ash from coming through air vents.

Earthquake Mitigation Measures: While several states require that new buildings be fitted with earthquake resistant materials, businesses in buildings built before those modern processes are often the most susceptible to damage. The SBA offers examples of mitigation such as buying anchors for rooftop-mounted materials, buying window film to reduce glass spread during a quake, or retrofitting masonry or concrete buildings. Once again, the SBA offers an extremely wide range (economic and manpower) of projects meaning that even if your project is not specifically listed, there is a fair chance it will still be considered.

Hail Mitigation Measures: Hail damage isn’t likely to level your entire place of business but if that damage is sustained over the length of a storm, hail damage can become very costly. If you are seeking mitigation in connection to a hail-based disaster loan, the SBA gives these examples of acceptable projects: installing steel gutters, replacing existing structures like skylights or shingles with more weather-resistant alternatives, or installing hail guards.

Preparing for the Worst Leads to Weathering the Best

The mitigation assistance program is best used by businesses who suffer enough damage from a natural disaster to justify a disaster loan but are not devastated so fully that they need to find a new place of business. Disaster loans are meant to bring your business back to working order as quickly as possible, and thus, the money from those loans is generally only allowed to be used on strictly essential elements. Mitigation assistance, then, is a fantastic opportunity to take up improvements and safety measures at the same rate of your disaster loan which is likely considerably less than non-SBA-backed loans. Further, the SBA gives an extremely broad spectrum of examples when explaining what applies as mitigation. Especially as hurricane season looms on the East Coast and Wildfires continue in the West, there are likely quite a few small businesses who could benefit from further mitigation.

Small Business Owners Share How They’re Maximizing Labor Day Weekend

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It seems that small business owners are always at work, even during three-day weekends. While Labor Day weekend typically means one last trip to the beach or dip in the pool to mark the end of the summer season, it means something quite different for small business owners. Although the weekend is meant to commemorate workers, it usually spells opportunity for small business owners – and not just for additional sales. 

Kapitus reached out to scores of small business owners to see how they plan to maximize their three-day weekend, and, unlike most, the responses overwhelmingly involved a mix of work and play. Some plan to spend the weekend recharging and spending time with their families, while others said they will use the day off to knock out “to do” lists for their small businesses. For others, Labor Day weekend means getting prepared for the upcoming holiday season. 

Hybrid Work?

Many small business owners that Kapitus spoke to said three-day weekends give them a chance to both recharge and get some much needed chores done.

“I’ve found that a lot of people think they can’t do both—take time off and still get stuff done—but I actually find it helps me focus more than if I’m in the office all day long,” said Dmitriy Bobriakoz, co-founder and managing director at Solwiser. 

“When I’m working from home or at a coffee shop, I tend to be more focused because there are fewer distractions around me: no coworkers asking for help, no deliveries arriving unexpectedly. However, when I’m out of the office for a long weekend, I feel like I have more time to get my tasks done without feeling like there are any time constraints on them By using this time wisely and taking advantage of 3-day weekends whenever possible, it’s easy for me to stay on top of all my responsibilities while also enjoying some much needed downtime!”

Work-life balance is a myth, according to Laura Rike, a small business consultant.

Laura Rike, a self-employed consultant to small businesses, called work-life balance “a myth” for small business owners because they often have to multitask between personal and professional matters. 

“The idea, in my opinion, isn’t to seek a consistent work-life balance, but to be in a position where you can give more time and attention to different aspects of your life at different times,” said Rike. “Sometimes, if you have a launch or a super busy season, work is going to be more time-consuming. If your children are sick or you have family in town, then family may take more focus. It’s a matter of being in the position to leverage things so that you can be where you need to be most, when you need to be there. This could fall on a 3-day weekend, and require you to take your own 3-day weekend another time, when your attention, energy, and time are less critical to your business.” 

Laura Fuentes, operator of Infinity Dish, said that getting some much-needed rest and relaxation is important during a three-day weekend, but emphasized that small business owners can also use the time to get organized.

Getting organized and then shutting off from ‘work mode’ is the ideal way to maximize a three-day weekend, said Laura Fuentes, operator of Infinity Dish.

“As a small business operator, I’m almost always up against a deadline,” said Fuentes. “Three-day weekends can feel like an escape from those feelings but if you’re not doing anything productive all weekend, when the work days roll back around it can feel even worse. So, I take the first two days of a three-day weekend and I completely turn my brain off of work mode, don’t think about it at all! 

“Then on the third day, I spend at least a few hours dealing with work – Emails in particular. I like to get ahead on planning my week and doing a few hours of work just to catch up on anything that I couldn’t finish the week prior. Then after that, I close my work computer and go relax with my family because knowing when to be on and when to be off is the key to surviving business life.”

Here Come the Holidays!

Some small business owners told Kapitus that the Labor Day weekend officially marks the busy holiday season – one in which retailers and other businesses need to get their inventories ready and start promoting sales for specific holidays from Halloween to New Year’s Day.

“While the best thing for small business owners to do with the upcoming three-day weekend is get some rest, the second best thing they can do is start planning their holiday marketing strategy,” said Cain Twyman, owner of Twyman Consultations. “August is a great time to start planning your holiday marketing, but if you haven’t had the time yet this 3-day weekend for Labor Day is perfect to start! Take a few hours to map out your offers, plan your campaigns and give yourself the best start to the biggest ecommerce season for businesses.” 

Long-Awaited Tasks

Other small business owners said three-day weekends are best used to tackle to-do lists and to complete tasks that they simply don’t have time for during business hours. For example, Doug Spencer, co-founder of Bold Xchange, said Labor Day is a valuable time to focus on marketing and sales tactics.

Doug Spencer, co-founder of Xfinity Exchange, said a three-day weekend is the perfect time to think creatively about your small business.

“At Bold Xchange, packing and shipping corporate gift boxes is a core function of our business. Our logistics partners are closed on most Monday holidays,” said Spencer. “These are special, rare opportunities to shift our focus from the physical products we sell to the experiences we create for companies and teams across the country. We take these days to do the creative thinking and planning that can be hard to squeeze in between daily shipments and deliveries.”

Shaun Connell, founder of Credit Building Tips, said that Labor Day and other holidays are great chances for some quiet time to brainstorm ways to improve business.

“I like to take advantage of three-day weekends by planning creative strategies for my business, as I find during holidays you feel more relaxed and at ease to be able to do so,” said Connell. “I use my time wisely to create new marketing strategies, keep up with trends via social media, as well as re-look at my overall business goals to see if I am on track. There are less obligations to be met over a three-day weekend which is why finding creative business ideas is easier, as you can focus and do so in a more relaxed way.” 

Freeman Smith, founder of NuFactor, echoed Connell’s sentiments. “Holidays are the best day to put your head down and work without having to respond to emails,” he said. “I’ll be spending Labor Day migrating our business to a new CRM. This is something I’ve wanted to do for a long time, but it is difficult to do when our team is utilizing the existing CRM to speak with customers.”

All Work

Unfortunately, while most people enjoy a rare Monday off, a long weekend means extra hustle for some small business owners, especially since local shoppers will have an additional 24 hours to purchase products. However, despite working on holidays, three-day weekends give small businesses a chance to connect with their local communities.

“The best market to leverage in the early stages is the local market,” said Adam Kremer, owner of Royalty Renewables. “Every three-day weekend throughout the year is jam-packed with events. Local communities come together to see one another and enjoy outdoor activities with their friends and family. It can be brewery beer bash, fourth of July fireworks, labor day cookout, or even a fair. These events have all the paid advertising done for you and many allow for vendors to take part…You get the perks of face-to-face communication where you can build relationships with countless residents local to you, which can create easy return business if you have a local shop or perform a service for homeowners.”

You Also Need to Recharge!

Thankfully, Kapitus did speak to small business owners who “turn off” work during three-day weekends to get some much-needed family and rest time.

“A three-day weekend is ideal for spending quality time with family and friends,” said Laura Kinkar, CEO at Messente. “It isn’t easy to devote your undivided attention to your loved ones during the week, especially when you have a lot to do to accomplish everything you need to finish at work. However, with a long weekend, you have enough time to disconnect from technology and get adequate sleep, and you still have time to go on a weekend getaway with your loved ones to a destination that’s an hour away from home. The three-day weekend will surely recharge your batteries for the upcoming week.”

Enjoy the Long Weekend!

Burnout is very real, especially among small business owners who have to wear multiple hats and constantly take work home with them. Whether you’re going to be at work, play, or a combination of both, make sure to take some valuable time off during the holidays to get some rest and enjoy time with families. Enjoy the weekend!

Woman applies tape to box

Tips for Making Free Shipping Sustainable for Your Small Business

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Ecommerce businesses have comparably little power when working to convince a customer to make a purchase than traditional, brick-and-mortar storefronts. While traditional storefronts can turn on the charm and work directly with customers as they use their basic human senses of sight, touch, hearing, smell and/or taste to select products, ecommerce businesses usually depend on the strength of a visual representation of their product alone. This means that price likely plays one of the most important roles in making digital sales. Google and other browsers’ built-in tools also make it incredibly easy to compare hundreds of similar items at once, making the lowest overall price often the most attractive. Enter, free shipping. Services like Amazon have made free shipping a standard for Prime members, and further, a general expectation from consumers. Free shipping is one the very few incentives available for ecommerce companies and effectively leveraging free shipping can have a tangible impact on your sales. Of course, simply adding the price of shipping onto the base charge of an existing item is not a sustainable option; as explained, comparing similar items online is so simple and impersonal that items with factored in shipping have the very high likelihood of being glazed over by most general web “window” shoppers. Consider, then, this list of tips and strategies to work free shipping into your existing business structure. No matter the size or scope of your existing business, evaluating your ability to offer free shipping is a great starting point for larger money-saving conversations to have with your staff.

Options and Limits

Options: Where feasible, consider giving customers multiple shipping options, the most basic of which ought to be free. For example, if you are shipping through the USPS, all orders which ship as a First-class Parcel may be free while customers can also choose Parcel Select for an upcharge. The most effective buy pages also estimate how many days each option will take to deliver. Having a shipping time estimate is a major factor in convincing a customer to complete an order. But depending on whether or not you are partnering with an ecommerce provider like Shopify with easyship, estimates will likely be pre-calculated.

Limits: Depending on the size and overall cost of an order, consider setting clear parameters where and when free shipping is sustainable for your business and use the info to guide what products or overall orders can qualify for free shipping. For example, a very common limitation for free shipping is only allowing domestic orders under a certain weight or size. Look at your existing products and shipping methods and set a baseline for free shipping. Orders under a certain weight qualify for free shipping where reasonable. Businesses interested in trying limit-based free shipping will likely need to evaluate which shipping services they are already partnered with, which leads into our next idea.

Event-Based Free Shipping

An effective way to get customers excited about free shipping is offering it during a limited time or a seasonal deal. By making free shipping an incentive, you may also drive in new sales. Sit down with your team and find out what types of seasonal promotions make sense for your industry and current scale. A possible concern, however, of running a seasonal or event-based free shipping promo is making less on each sale. Consider, then, cutting some creative corners during these promos. For example: if you traditionally use cardboard for shipping, consider ordering cheaper bubble mailers specifically for those promo orders. There are millions of creative ways to cut down on prices from your end. But the name of the game is making sure customers feel and comprehend that they are taking advantage of a timed-special by making an order during your promo.

Coupon Codes

Browser extensions that aggregate coupon codes like Honey have exploded in the last 5 years with more than 10,000,000 downloads on Google Chrome alone. Extensions like Honey pause buyers at checkout pages and scan their own systems for any relevant and active coupons. Here’s the trick: businesses can work directly with coupon extensions to create special promo codes. This means that you can create a special free shipping coupon code and distribute that code to a coupon extension along with specific parameters for when that coupon code is allowed to be added to checkout. For example: your coupon code can easily be configured to function only when a customer’s cart has more than $50 worth of merchandise, or whatever figure makes free shipping financially reasonable for such an order. Coupon codes, like seasonal promotions, incentivize customers to follow through on an order because they understand they are getting a deal that either not everyone else is privy to or that they may not be able to use in the future. The purpose of the coupon, however, is to grab customers with last minute cold feet as well as a means to offer free shipping in a less than universal way.

Bundles and Bonus Items

For most businesses, larger orders equal wider margins and more wiggle room for free shipping. By having a customer buy more items and spend more overall on their order, it is much more likely that your business can support offering free shipping as a further incentive. A great way to do this is creating presorted bundles or adding in upselling bonus items for each order. Do the math ahead of time and find out what products at what price point would both equal a deal for your customers and widen your margins enough to allow free shipping. Alongside full bundles, maybe consider adding a small bonus item for a small upcharge. In that upcharge, however, you may have enough space to make free shipping less of a financial hit. For example: if an existing item costing $30 has an upcharge bonus option for an additional $10, perhaps that bonus item will also activate free shipping making it appear as a doubly good deal to customers. Of course, this example will only work if you can both keep shipping dimensions similar with or without your chosen bonus item.

Free Shipping is Never Free

And customers know this too. Trust your customers to understand that the price for shipping must be factored into their order in some way. Depending on your industry and where you ship your merchandise, free shipping in its most traditional form may very well be wholly unsustainable. Through any of these tips, however, it is entirely possible that the SEO and psychological advantages of free shipping are still available for your business.

Jerome Powell Recession Small Business Lending Kapitus

Say, What Kind of Recession is This? 

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Are we in a recession? As far as economists are concerned, we are, as the US has now experienced two consecutive quarters of negative Real GDP growth – the typical measuring stick of a recession. As far as economic downturns go, however, small business owners shouldn’t go into full panic mode just yet, as this recession doesn’t quite seem to have the teeth of prior ones. The two immediate past recessions are the one in 2020 that resulted from the COVID-19 pandemic and the Great Recession in 2008-2009 after the housing market collapse. 

Key economic factors are showing that the US economy is still strong in many areas, and while rising inflation is forcing many people to readjust their budgets, consumers are still spending and total business sales in the US are still climbing upwards. This is good news for small business owners, who are more worried about the future than ever before as they’re trying to adjust their prices due to inflation. 

What Does Negative GDP Growth Mean?

The Real GDP (inflation-adjusted) is the final monetary value of all goods and services produced by the US in any given period. In other words, it tells us what consumers are paying for products and services, and provides a snapshot of the economy’s size and growth rate. In the last two quarters, the national GDP fell by 1.6% and 0.9%, respectively. Additionally, stock market volatility is continuing as the Standard & Poor’s 500 Index is still down from its one year high in December 2021.

Negative growth usually means declining wages and corporate sales as well as a shrinking money supply, but none of those things seem to be happening right now. Additionally, while wealthy investors aren’t making as much money in the stock market right now as they were at the beginning of the year, that’s hardly an indication of how the overall economy is doing.

Not all Gloom and Doom

What this all means is that we are currently living in an ambiguous economic time as the country continues to bounce back from COVID: consumers are spending more, business sales are continuing to climb and the unemployment rate remains low, despite negative GDP growth. While everyone is feeling the pinch of skyrocketing inflation, statistics show that rising average wages are helping to offset that challenge. 

Additionally, negative GDP growth may be being driven, in large part, by the continued supply chain shortages – consumers still want to buy products, but those products just aren’t hitting the shelves, thus driving down GDP growth.

Here are some of the factors to show that this recession may not be as painful as past ones. 

Business Sales are up

Total business sales track the value of all goods and services delivered to consumers. Recent numbers show that despite inflation, consumers are still buying, especially in the travel and entertainment industries, after being cooped up in their homes for two years during COVID lockdowns. According to a presentation by the St. Louis Federal Reserve (using Bureau of Labor Statistics data), total business sales were $1.83 trillion in June 2022, up from $1.82 trillion in the previous month and $1.76 trillion in January 2022. 

To put that in perspective, when the pandemic-related recession began in 2020, total business sales plummeted from $1.42 trillion in February 2020 to $1.14 trillion in April 2020. During the Great Recession, total sales went from $1.22 trillion in July 2008 to just $980 billion in January 2009. 

Unemployment Remains Low; Wages are Rising

One of the most telling signs of a recession are the national unemployment rate and wage growth – after

unemployment recession Kapitus small business lending

The US unemployment rate remains low, despite negative GDP growth.

all, if people don’t have jobs and aren’t making more money, they can’t spend. The unemployment rate dipped to 3.5% in July after remaining steady at 3.6% every month for the three months prior, while roughly 528,000 new jobs were added in July. In comparison, the unemployment rate was 14.7% in April 2020 at the height of the pandemic, and 10% in October 2009 during the Great Recession.

Additionally, according to the Atlanta Federal Reserve (using data from the Bureau of Labor Statistics), the three-month rolling average median wage growth in the US was 6.7% in June 2022, as businesses both large and small are still struggling to attract workers during the “Great Resignation.” The BLS’ Job Openings and Labor Turnover Summary (JOLTS) report showed that the quit rate (the percentage of people leaving their current jobs) remained steadfast at 2.8%, while the number of layoffs remained unchanged at 1.3 million. 

Consumer Spending Continues

In a recession, especially when inflation remains high, one might expect consumer spending and inflation-adjusted disposable income to be down, as it was in 2020 and 2009. Incredibly, that isn’t the case right now. Gross median income in the US continues to grow at a slow but steady pace, as it rose 0.6% in June 2022. Median disposable income (net income after taxes) rose 0.7% in June 2022, up from 0.4% in April 2022, according to the Bureau of Economic Analysis.

Of course, one would expect that consumers, especially in low- to middle-income areas, are struggling due to rising food and fuel costs, but according to BEA stats, people are still looking to buy products and services, especially in the travel and entertainment sectors. Personal consumption expenditures rose 1.1% in June 2022, despite rising inflation and interest rates, an increase from 0.3% in May and 0.5% in April. For perspective, consumer spending was -2.8% in mid-2008 to mid-2009 during the Great Recession. 

credit card debt consumer spending Kapitus small business lending

Despite rising credit card debt, consumer spending is still on the rise.

One alarming trend, however, is that while consumers are still spending, they are dealing with higher prices by racking up credit card debt. A recent study by the Federal Reserve Bank of New York showed a 13% increase in year-over-year cumulative credit card balances, as well as a $46 billion increase in credit card debt in the second quarter – the largest increases since 2002. Credit cards do have spending limits, however, so as a small business owner, it may behoove you to look for ways to offer some discounts on your most popular products.

The Housing Market Remains Strong

Housing costs are a major benchmark of whether a recession is happening, as lowered housing costs typically indicate that fewer people can afford to purchase a home. According to Mortgage News Daily, the 30-year fixed mortgage rate fell to 5.13% at the end of July 2022, down from over 6% in mid-June 2022, suggesting that housing prices are cooling a bit due to continued interest rate hikes. 

The cool off in housing prices, however, are following an all-time high in median sale price of a home in the second quarter, which was $440,300. At the height of the housing boom in the 2000’s, the median sale price of a home was $257,400 in the first quarter of 2007. This indicates that there is still a supply-demand imbalance for new homes in the US, and that consumers are still willing to pay high prices to purchase a home. 

What do the Experts Say?

Financial experts are divided on whether the US is truly in a recession. Tom Siomades, CIO at Wealth Management, believes we are, despite positive economic indicators. Siomades firmly believes that negative GDP is the main factor. 

“This is technically a recession,” he said. “Some may try to define a recession in other terms but cherry-picking positive data points and ignoring the negative ones is not an effective way to deal with the challenges we face.”

Peter Tanous, chairman of Lynx Investment Advisory, disagreed, saying that the low unemployment rate

Peter Tanous Lynx recession Kapitus small business lending

Peter Tanous, head of Lynx Investment Management, believes low unemployment indicates that the US is, in fact, not in recession.

indicates that the economy is fine, despite negative growth.

“We are not in a recession if the unemployment rate remains below 5%,” said Tanous. “Most economists do not believe that the decline (in GDP) so far, while technically a sign of a recession, qualifies as such given the other positive economic indicators including demand for workers and the low unemployment rate…We are not there.”

What Does This Mean for Small Businesses?

Small businesses are still the backbone of the US economy, and when a recession hits, they typically feel the pain more than anyone. However, we know that fancy economic terms don’t really mean much to the average small business owner – making money does. So, what should small business owners do in light of all of the confusing economic indicators out there? 

For one thing, doom and gloom isn’t on the horizon as many economists may be telling you. Double down on your marketing – consumers are still looking to buy your products, and the competition out there is still stiff. Reorganize your inventory to keep your most popular items in stock, and keep searching for new employees if you need and can afford them.

You Should Still be Cautious

At the same time., it’s always a good idea to err on the side of caution by making preparations for a true recession, because you never know when the economy will take a downturn. The statistics, however, show that you have more reason to be upbeat than you may realize.

Kapitus small business lending price increases

How to Handle Inevitable Price Increases

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Having to raise the price of products and services has become a huge headache for small businesses as inflation continues to skyrocket – the Consumer Price Index for all Urban Consumers (CPI-U) rose 9.1% in June – and workers continue to demand higher compensation. This has put a squeeze on small business owners, who are now facing the major challenge of figuring out how to continue to raise prices and stay profitable while not driving away customers in the process.

So how do you continue to raise your prices without off-putting your new and existing customers? It’s a dreaded task for sure, but it may not be as bad as you think. 

Small Businesses Have The Advantage

Have you gotten notices from large retailers, supermarkets or restaurant chains that they are raising their prices? Probably not. Large companies simply raise their prices and assume customers will pay them because they have no choice. Moody’s analyst Linda Montag said in an interview that large retailers will use stealth tactics to increase prices, such as selling smaller packages of products for the same price as previously larger packages, changing the design of their packaging and offering discounts on products and then implementing a price increase when those discounts have expired. 

“Consumer companies across the board have gotten very savvy about how to implement price increases without just slapping on five to 10% price increases,” Montag said in an interview with CNBC.

Larger companies also have teams of consumer researchers monitoring how high prices can be increased before customers refuse to pay so they can determine what their price thresholds are. The point is, if you’re a small business owner, your large competitors are doing the work for you in terms of sales research and price increase strategies – this is something you can definitely use to gain an edge over your larger competitors.

Speak to Customers Personally

As a small business, you have a smaller market share than your larger counterparts, so you can more easily inform your customers of price increases through email, text messaging or a note on your website personally detailing why you need to raise prices. Your customers may not be happy with the price increases, but most of them understand the current economic circumstances the country is facing, and they will appreciate the fact that you’re being honest and upfront with them. 

Some of the ways you can soften the blow when you tell your customers of price hikes:

  • Keep explaining why. Nobody likes to pay more for goods and services, but most people understand the difficult challenges that businesses are facing right now. Inflation continues to surge, supply chain disruptions remain, and workers are demanding better pay. When you inform your customers of price increases, keep explaining to them the precise reasons why you need to do this. Most customers – especially lifetime customers – will understand, as they are most likely seeing price increases everywhere. 
  • Send personal messages. If you have the ability to do so, send individual emails or text messages to your existing customers letting them know that you have no choice but to raise products due to the rising costs of commodities, supply chain disruptions, high salaries, etc. Your customer will feel like you are speaking to them directly. There are several online services that can enable you to send these emails or text messages.
  • Undercut bigger competitors. The fact that large retailers, restaurant chains and supermarkets are increasing their prices could give you the opportunity to raise the prices of your most popular products, but not raise them as high as your larger competitors. This strategy could boost your sales dramatically if customers believe they can get products more cheaply from you. 
  • Inform your customers of price increases in advance. Letting your customers know a week or two ahead of your price increases gives them a chance to adjust their budgets and enables them to keep buying from you. Plus, they will appreciate the heads up.
  • Make sure to get customer feedback. Make sure you give your customers an opportunity to give feedback on and react to your price increases. Make room on your website for feedback or allow your customers to email you directly, even if they’re just venting about inflation and price hikes.
  • Find the Threshold. You need to raise prices to meet payroll and keep the lights on, but
    Freshbooks Kapitus Small Business Lending Financing

    Software such as Freshbooks can assist your business in finding the right price that your customers are willing to pay for your products.

    customers will only be willing to pay so much before they walk away. There are tools such as Fresh Books Markup Calculator or Mini Web Tool’s Markup Calculator that can assist you with that.

Get Creative in Product Offerings

If you must raise prices, try offering discounts to make customers feel like they’re getting value. One way to do this is to offer a bundle of products and give them the message that while prices have increased, they’re still saving money by purchasing those products as a group. Restaurants, for example, may go to a pre-fixe menu that will still be profitable and yet cost less than if a customer ordered items from the menu separately. Another simple example is a clothing store might offer a shirt-and-tie bundle when a customer purchases a new suit.

If applicable to your business, you can also offer flexible payment options on prices that are marked up. For example, if you own an electronics store, offer a long-term payment plan for a new laptop. If you’re an accounting or law firm, you may want to offer clients a monthly payment plan. 

Don’t Worry, It’s Happening Everywhere

While customers won’t be happy with higher costs, one factor that should put you at ease is that it’s not just you that’s hiking prices – both big and small businesses are doing it as well. Your best bet, and the simplest way forward,  is to keep track of the prices your competitors are charging, and stay in touch with your customers.

Recession Small Business Kapitus Lending Economy

SMB Owners are More Pessimistic Than Ever, Despite Some Positive Signs

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Despite some relatively good news about the economy over the past month, most (51%) small business owners that comprise the membership of the National Federation of Independent Business(NFIB) believe they will see worsening economic conditions over the next six months – the highest percentage the NFIB has ever seen in its 48-year-old Small Business Optimism survey.

The Inflation Scare

Inflation was the top concern for small business owners last month. The survey found that the net percentage of small business owners that had to raise prices in June increased by four percentage points to a net 72% (seasonally adjusted) – again, the highest in the history of the survey. 

The worry over inflation, however, comes amid both good and bad news about rising prices. The bad news is that the Consumer Price Index for All Urban Consumers (CPI-U), the index that most financial institutions look at as a measure of inflation, skyrocketed to 9.1% in June – more than a full percentage point above May and the highest since 1981 – with rising gas and housing prices and insurance rates all leading the way.

The good news is that the core Personal Consumption Expenditures (PCE) Index – the index that measures the prices of consumer goods excluding fuel and food – only rose 4.7% from May to June, which was lower than what most economists predicted. The Federal Reserve Bank uses the PCE index as its main measure of inflation. This suggests that the rise in the costs of consumer products lag somewhat behind the rise in costs of essential items such as gas and food. The bottom line is that the two may not be having as big of a correlation as many believe. 

Hiring (or Lack Thereof) 

A large percentage of small business owners surveyed by the NFIB (47%) said that they have job openings that they can’t fill, mostly in the transportation, manufacturing and construction industries. That number, however, is down from 51% in May and reflects a national trend that the hiring climate may be slowly improving. 

According to the US Dept. of Labor’s most recent Job Openings and Labor Turnover Summary (JOLTS), the ratio of job openings to available workers fell by 0.3% to 7% in April from March, while job openings fell by 455,000 in April from March. While these are only slight decreases, it marks the first time that ratio has fallen in nearly a year. 

The JOLTS report does not say whether job openings fell because a recession is approaching and, as a result, there are fewer jobs, or whether it was due to increased hiring. The national unemployment rate, however, fell to 3.6% from 3.8% from March to April, however, indicating that the decrease may be due to increased hiring. 

Supply Chain Blues

The NFIB survey also showed that 40% of small business owners cited supply chain disruptions as a major problem, a number largely unchanged over the past three months. Global pressure on supply chains has certainly been very real since the end of 2021 as the world slowly crawls out of the COVID-19 pandemic, and many economists are predicting that those problems will persist well into 2023. 

Inflation Supply Chain Kapitus Small Business Lending

Yardeni Research found that delivery times – one of the main measures of supply chain efficiency – have been improving.

Some research is suggesting, however, that national supply chain problems in major economic hubs have been slowly easing this year. Economist Ed Yardeni of Yardeni Research studied delivery times – one of the main measurements of supply chain efficiency – in five major Federal Reserve Bank regions – New York Metro, Philadelphia, Kansas City, Richmond and Dallas – and found that those delivery times have been improving. 

Yardeni found that delivery times in all but one of those regions – Dallas – have improved since April. 

“June’s surveys of five of the 12 district Federal Reserve Banks strongly suggest that supply-chain disruptions have eased significantly in recent months,“ Yardeni wrote on his LinkedIn page. He noted that supplier delivery times often closely correlate to inflation rates. 

“The question is whether the drops in regional indexes tracking unfilled orders and delivery times during the first half of this year reflect more ample supplies or diminishing demand,” he wrote.

Be Vigilant

If the NFIB Small Business Optimism Index reveals anything, it’s that small business owners are facing some unprecedented challenges and may have to adjust their prices and offerings as a result. While that is certainly the case in many instances, there are also some silver linings in the challenges small business owners are facing that indicate that economic conditions may be slowly improving. 

With many economists predicting a recession later this year and into 2023, however, it could be the case that the economy gets worse before it gets better in the immediate future. Small business owners would be well-advised to slowly raise prices and compensation levels for their employees to meet some of these challenges, as well as prepare for an oncoming recession by trying to cut operating costs where they can and arrange for additional financing if needed.

Construction small business lending kapitus

Construction: Make Sure Your Company is Prequalified!

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The arduous task of complying with risk management guidelines has come to the forefront for construction firms, especially subcontractors. In particular, the advent of prequalification software, which more contractors and agencies are using to keep a database of prequalified construction firms. This software makes it easier for contractors and government agencies to launch invitation-only bids for new construction projects, thereby emphasizing the need for small construction firms to make sure they are in those databases. 

This news is especially important for smaller construction companies, as the new housing construction market remains hot and the federal government is poised to issue a bevy of new contracts for specialized construction projects due to the passage of the Infrastructure Investment and Jobs Act.

If you’re a small construction company, here are some tips on how to make sure you are included in construction firm and government databases of contractors as a pre-qualified company and stay in the running for new projects.

Up Your Marketing Game

An upcoming surge in federal contracts and the continued strong demand for new housing will benefit the construction industry for the foreseeable future. Basic marketing techniques still apply: you need an optimized website; great content, a strong social media presence in which you target the exact audience you wish to do business with and monitor your web traffic and responses, among other things. 

You also most likely need to do more outreach to specific contractors, especially in your vicinity, and government agencies seeking to bid out contracts to make sure your company is on their radar. Setting up email pitches and sequences for potential clients, for example, could go a long way in making sure people know about your company. Do some digging to find out who the decision-makers are at various government agencies that may outsource construction projects (it could be your local municipality, a state government branch or a federal agency) and contact them to make sure you are on their radar screens.

IAmBuilders.com has a great web page on how to market your construction firm, and the video below from small business coach and influencer Mike Claudio also gives great tips. You should follow as many of those steps as you can to make sure your company is visible to the public. 

Make Sure You’re Prequalified

The task of prequalifying is complicated, especially now that it’s time for what construction industry experts call the “Great Expiry” – the period between April and June when most pre-qualifications expire and must be done again. The steps that need to be taken to prequalify are involved, but necessary. Clients and contractors want to cut down on the risk of project delays, shoddy work and going over budget. 

As the owner of a construction company, you must show potential customers and contractors that:

  • Your company is licensed for the particular job. Getting licensed for a particular project isn’t difficult in most states. Double-check with the customer or the contractor whether the project requires licensure. 
  • Make sure you have the proper experience. Obviously, different construction projects may require different skills. Constructing a new modern office complex or home for a private customer will require different expertise than, say, building or repairing a road or a bridge for a state or local government. Make sure you have experience to bid on a particular project, and if your company does not, make sure you hire workers who do have that experience. Having experience will give some reassurance to the customer or contractor that there won’t be any unforeseen delays or shoddy workmanship.
  • Make sure you are following proper safety protocols. This sounds simple but can mean the difference between winning and losing a bid. Make sure you are compliant with the federal Office of Safety and Health Administration’s (OSHA) safety guidelines for construction projects. This means taking steps to prevent fires and explosions, accidental falls and other injuries. 
  • Demonstrate that your company is financially stable. Has your company ever filed for bankruptcy protection? Do you have the assets to pay your workers adequate compensation to ensure that they won’t walk off the job due to low pay? Ensuring this will indicate to your customers that your company has the resources and inventory to complete the job without going over budget.
  • Demonstrate strong payment history. For any construction project to go smoothly and without delays and extra costs, it’s important to know that subcontractors and suppliers will get paid on time and in full. Legal claims for unpaid construction work, called a mechanics lien, can significantly delay a project. Also, don’t forget that the Little Miller Act requires that prime contractors post a payment bond backed by a surety company that guarantees the finances necessary to complete a construction project. Make sure that this bond is lined up when you apply for a project bid, be it with a private customer or government contractor. 
  • Get your financing lined up. Using financing to ensure that your construction company can complete a project is not necessary for prequalification, but it can ensure that your company is ready to take on a project. Equipment financing is a form of lending that can ensure you have the most modern construction equipment to complete a task. You can also use purchase order financing to make sure that your suppliers get paid on time without restricting your cash flow, and a line of credit can make sure your workers get paid on time. You may also wish to use invoice factoring in case your contractor or customer is slow to pay those invoices. 
  • Respond to Customer Feedback! As we are now living in the “Feedback Economy,” most consumers (including your future clients) will check Google Reviews, Angie’s List, Yelp and other apps in which customers provide feedback on their experiences with businesses. If your construction business has been reviewed, make sure you respond to those reviews. Negative reviews are especially important to respond to – when you respond to them, thank the customer for their feedback and state clearly that you’re making the necessary changes to improve your business based on their feedback.

Get to Know Prequalification Software

Being qualified for a construction job and letting the world know that you’re qualified are two different things. With the increased popularity of prequalification software, you need to get to know what these programs are looking for to be included in bids. Some of the most popular prequalification software packages out there being used by construction firms include:

These software packages emphasize slightly different aspects of the prequalification system. For example, FAST Builder focuses a lot on scheduling and pricing, while ConsensusDocs focuses more on contract details and design. Chances are a contractor or client is using one of them to build a database of qualified construction companies for various projects, so it’s important to learn the best ways to respond to each one so that you can put your best foot forward at bidding time. 

Don’t Miss Out!

The construction industry is set to be in even higher demand over the next few years as more government contracts will be coming out for bid. Make sure your company is visible, qualified and ready to go when projects are put out for bid.

Small Business Grants Lending Florida Kapitus

Small Business Grants, Contests Still Available in Florida

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With major economic hubs such as Miami, Orlando, Fort Lauderdale and Tampa Bay, Florida ranks number three in terms of states with the highest number of small businesses. The state’s 2.5 million small businesses rank it behind only California and Texas. 

With a high number of such businesses, however, comes a high amount of pain: the Sunshine State saw over 32% of its small businesses permanently or temporarily close during the height of the pandemic, one of the highest figures in the country. 

With yet another national recession looming on the horizon, getting free money has never been more important to the survival of the state’s small businesses. Fortunately, there are several small business grants and contests still available to small businesses in Florida on both a state and national level. On a national level, there are grants and contests that are still open that can land you a large pool of money and are worth applying for:

Kapitus’ $250K Building Resilient Businesses Contest – Deadline is Looming!

Kapitus has launched its Building Resilient Businesses contest, in which one first-place winner will receive $100,000; one second-place winner will receive $50,000 and five third-place winners will each receive $20,000. To enter, simply send a homemade, 2-minute video briefly describing your business, how it was able to persevere over the last two years, and how you would spend $100,000. The contest is open to all small businesses in the US (excluding Vermont and Colorado) that have been in business for at least a year and have less than $5 million in annual revenue. The deadline to apply is June 30, 2022. To enter the contest, click here.

WomensNet Amber Grant

Florida is home to 1.1 million women-owned small businesses, making it the state with the third-highest

Lending Grants Small Business Kapitus Women-Only

Previous winners of the Amber Grant for women-owned small businesses.

total of those businesses, so the WomensNet Amber Grants are very applicable to the state. WomensNet gives away one $10,000 grant and four $1000 grants to women-owned businesses in distinct categories every month such as skilled trades (January), hair care and beauty products (August) and Creative Arts (October). The site also gives grants of $25,000 to two businesses each at the end of each year, with both of them being previous $10,000 monthly grant winners. Applications are due on the last day of every month. To apply, click here. 

American Express and Main Street America’s Inclusive Backing Grants

AmEx and Main Street America are providing more than 300 grants of $5,000 each over four cycles throughout 2022 to small businesses located in older or historic commercial districts with priority to be given to small businesses owned by the LGBTQ+ community, Hispanic-owned, veteran-owned, and business owners who are women and people of color. Applications for the fourth grant cycle are now being accepted by business owners who identify as native or indigenous people, Hispanic, LGBTQ+ and immigrants and refugees. Membership in the National Main Street Center is not required. Applications for the fourth grant cycle can be found here.

State-Level: Open to Florida Small Businesses Only

Currently, there are several grant programs that are still available for small businesses operating in Florida to apply to. 

Florida High Tech Research Grants

The Florida High Tech Research Corridor is a public-private partnership between successful high-tech startups in the 23-county region of southern and central Florida and the Universities of Central and South Florida. 

The Corridor provides up to $150,000 in funds for applied research projects between private startups and small high-tech firms and university researchers. Funding is provided directly to the university research team and is used to expand the project’s scope of work and allow our students to participate in cutting-edge, applied research. Industry partners must execute a sponsored research agreement with the university to formalize the project plan and terms. To learn more, click here.

Axis Helps Miami Small Business Grants

Axis Helps Miami, a resource company for small businesses in the Miami-Dade area of the state, is offering several grant opportunities to various small businesses. One is a $50,000 grant to women- and minority-owned small businesses in the area and will include consulting services as well as free advertising at Miami Heat games and partnership endorsements for your business. 

The deadline to apply is July 11, 2022. Another grant will provide $20,000 to small businesses in the area that are looking to scale up but don’t have the funds to do so. The deadline for that grant is July 15, 2022. To explore each grant program Axis Helps Miami is offering, click here. 

Seminole County’s Small Business Assistance Program

Since 2021, Seminole County has been giving grants to small businesses in the county of up to $15,000 to support expenses such as payroll, office utilities and remote access equipment. Applicants must be a for-profit business within Seminole County since at least the beginning of 2020 and must be a member of Sunbiz, a website maintained by Florida state government’s Division of Corporations. Applicants must provide their taxpayer identification number. Commercially zoned businesses with 26-50 employees will receive $15,000 if chosen, while businesses with 2-25 employees will receive $10,000 if chosen. Home- or mobile-based businesses with no more than one employee in addition to the owner can receive $5,000. For more information, click here. 

CareerSource Florida’s Incumbent Worker Training Grant – Apply Soon!

CareerSource Florida is awarding up to $100,000 to any small business owner in the Sunshine state who is seeking to train existing employees with new skills. The employee must work at least 37.5 hours per week and must have been employed with the applicant for a minimum of six months. Those interested must register with CareerSource Florida’s website. Deadline for applications is June 30, 2022. To apply, click here.

Enterprise Florida International’s (EFI) Virtual Business Matchmaking Grants

Enterprise Florida is offering grants of up to $2,500 for small businesses in the state interested in expanding overseas, but do not want to have to travel to set up an export program. The program includes virtual introductions with pre-screened overseas partners and distributors via teleconference or videoconference. The program also includes a grant that covers the full cost of matchmaker service, whether it is provided by EFI or the federal government’s US Commercial International Trade organization. Companies can apply year-round. Grants must be approved before the first day of virtual matchmaking appointments. For more information, click here.

Orlando Business Assistance Program

The city of Orlando isn’t just known for Disney World and Universal Studios, it’s also home to over 37,000 small businesses. The city’s Business Assistance Program provides grants throughout the year to assist businesses in relocating or expanding in Orlando, which include funds for development fees, permitting and other costs associated with relocating and expanding. Small businesses must pay half the related costs, and the grant amounts can be up to $20,000. To learn more about this program, click here.

Apply Soon!

If you’re a small business in Florida, any chance to gain access to funds would probably be welcome, as after-effects of the COVID-19 pandemic and current tough economic conditions such as high inflation, rising interest rates and an employee shortage are still rocking the economy. Act quickly, as many deadlines for small business grants and contests are coming up quickly.

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