More than $1 million in new grants and support are readying for innovative area businesses.
Three major federal grants are available now, or will be soon. One grant is slated for tech companies, while two are more general. All are meant to help startups.
South Dakota Biotech, Startup Sioux Falls as well as University of South Dakota (USD) representatives spoke Wednesday at the One Million Cups event, a get-together for those interested in business, to talk about their institution’s grants for new businesses.
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Newest grant from USD to help STEM startups, plus up to $10k from FAST
For those starting highly-technical businesses in need of education and funding to get off the ground – a new grant from USD titled the Back Office Business Support (BOBS) grant, funded in partnership with the Small Business Administration (SBA) will begin.
“What we’re hoping for BOBS to accomplish is to help our tech-based entrepreneurs,” Beth Lambeth, a leader and technology transfer officer at USD’s research office, said about the newest grant to come.
Specifically it’s “for entrepreneurs that have intellectual property as the foundation of their business strategy… your STEM people, your R and D (research and design) companies,” Lambeth said.
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SD Biotech and partner DSU’s entry is the FAST Launch grant application. This grant is general, for any new business to test out its product and pick up $1,500 to $10,000.
So far, a few businesses have applied for the grant, which helps guide businesses from an idea to finding customers with a ‘boot camp’ to start, all the way to competing in the Governor’s Giant Vision competition.
Hundreds more businesses have attended information sessions throughout South Dakota to learn more about FAST Launch, which is still open for applications.
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$1M for veteran, women & disadvantaged businesses
Sara Lum, a marketing manager with Startup Sioux Falls, talked about its $1 million dollar grant from the Biden Administration’s American Rescue Plan for small businesses.
The Community Navigator Grant, also in partnership with the SBA, will receive two-years of funding to help underserved communities, which are recognized as those businesses run by women, veterans and the socially and economically disadvantaged. Lum emphasized how this grant would succeed with buy-in from the business world.
“We rely on our partner organizations to support the entrepreneurs in our network,” Lum said.
Lum said one grant can lead to a total system – much like a funnel – to support the business owner from idea to funding to launching.
Grants aplenty, but a lack of role models
While each touted the benefits of their grants, some audience members pushed back on other aspects of business support needed in the state.
“We seem to be lacking venture-capital tracked startups,” Matt Paulson, the founder of MarketBeat said at the event. “It seems like the infrastructure is stronger than the network of startups themselves. What do we do about it?”
Grant leaders agreed in response.
“It has to start somewhere. Talking about it from a tech perspective, biotech, university and broader entrepreneurship aspect: I think this is what we need to do to start,” Joni Ekstrum, the executive director of South Dakota Biotech said. “For us in the biotech space, what Beth (& BOBS) is doing… is critically important. We are very aware of that.”
Each leader ended the event by offering to help refer and partner a potential business with the right university, grant or other resource needed to get started.
For more information, visit USD, DSU or Startup Sioux Falls’ websites to learn more.
