Owning a food truck business sounds exciting, but when you think about starting one of your own, the first thing that comes to your mind is finance and funds. The most important thing to run a business is funds, to get these funds you can apply for various food truck grants that are run by numerous agencies across the nation. You can get these funds to establish, and expand your business. Even the government has pitched in and agreed to help the budding entrepreneurs by providing them government grants for food trucks.
Apart from the food truck grants provided by various agencies, there is yet another option to gather funds for your business and that is food truck loans. Food truck loans are returnable loans that are provided to you with a set time limit to pay them back. These loans are provided to those people who wish to buy a food truck, modify it, or buy important equipment for it. If you are America one of the budding chefs or business people who strive to open a food truck, then tag along to know more about food truck grants that can help you with your business.
List of Top Food Truck Grants
There are numerous food truck grants available that can help you get ready for and establish your food truck business. Most of these food truck loans and grants are ambiguous in nature. This means that it is nowhere specified whether these grants are for a trucking business or a food truck business. Hence, you can use it according to your choice and need. Here, we give you a list of food truck grants that can be used according to your requirements.
- FedEx Small Business Grant Contest:
FedEx, every year organizes The FedEx Small Business Grant Contest where they provide grants to 10 promising small businesses. This grant can be termed under food truck grants as it doesn’t mention anywhere any specification related to the type of business that you can enter the contest with. Every year the company awards food truck grants of up to $25,000 to each winner that is deemed eligible for the award. One must note that this competition is one of a very cut-throat kind and you would have to work very hard to make your mark on the judge’s mind.
There were 4,500 applicants in 2017 for these food truck grants yet only 10 applicants were selected winners and were awarded the grants. The grand prize or the grant amount provided to the winning business is $25,000 while the rest of the top 10 winners get a grant of $5,000. If you think that your truck is unique and your business has something different from the crowd to offer, then you can apply for the food truck grants provided by FedEx under this contest.
- NASE Growth Grants:
NASE is one of those organizations that helps the self-employed community of our society. The National Association for Self-employed citizens aspires to assist small business owners of all types. As this organization provides help to all kinds of businesses, you can get food truck grants as well. They provide grants amounting up to $4,000 and these grants can only be used in marketing, advertising, hiring of employees, expanding the business, and other particular business requirements.
These guidelines are provided by the NASE itself and are available on their official website for the applicant’s facility. To be eligible for the grant, you would have to become a part of NASE, and only then would you be further eligible for the said grants for small businesses.
- NAV Small Business Grant:
NAV is a company that provides financial assistance to small businesses. When we say small businesses, this also includes food truck businesses. They have introduced a small business grant program and under this program, they have been awarding grants amounting up to $10,000 to small businesses that are showing or promise to show promising growth soon.
To be eligible for this grant, you are required to be a member of NAV. This can be done easily by signing up for a free account. You would then be needed to post on your Facebook business page and tell your story about the origin and establishment of your business and tag the company in your post so that you could be held into consideration while deciding the winner of the grant program.
Government Grants For Food Trucks
Not only various benevolent non-profit organizations but the government too has taken the responsibility to help out the small business entrepreneurs by introducing various government grants for food trucks. These government grants for food trucks can be easily located on the official website of the government that keeps all the records of all the grants introduced by the government at any juncture of time.
- Small Business Administration:
When it comes to seeking funds for business-related trucks, the first name that pops up in our minds is Small Business Administration or SBA. SBA is a federal government-administered agency that provides financial help to those who wish to dive into the trucking business or to those who are already in the business but need funds to expand their business. This is an agency that provides its service everywhere across the nation, so you can apply for government grants for food trucks provided by this agency from any corner of the United States of America.
SBA is an agency that promotes and supports all small and big trucking businesses including the food truck business. You can apply for government grants for food trucks at this agency just by filling out a simple application form and looking for whether your business is eligible for the grant or not. If your business is eligible then you can proceed with the submission of the form along with the submission of other essential documents.
- SBIR Grants:
Small Business Innovation Research Program or SBIR was introduced by Congress to assist small businessmen in flourishing their businesses. Every year this program awards approximately $2 billion to small businesses and several food truck businesses. You can apply for the grant if you have a small business that employs under 500 employees. Other criteria for eligibility are that the business should get you profit, it should be in the United States of America, and it must be owned by an American citizen only.
The grant amount is not disclosed but it depends on the type of requirement of the applicant. You would have to mention the reason for the application to the grant to get funds accordingly. The purpose of this program is to use the money for research, growth, and expansion of the business. These government grants for food trucks can be used on equipment, any other product, or services. The usage of the grant is a matter of choice of the applicant but it should be used strictly for business aid purposes.
Must Read: Get Government Grants For Truck Drivers
How To Get Food Truck Loans
Food truck grants and government grants for food trucks might take up a little more time than expected to provide you the funds that you require to start or run your food truck business. The solution to this problem is food truck loans. Food truck loans are provided rather more easily and speedily in comparison to the food truck grants and government grants for food trucks. Read along to know more about how can you get yourself quick food truck loans.
- Personal loans:
Almost all the banks and credit unions provide some kind of personal loan. Personal loans take your credit score and personal credit history into consideration before approval and after that, you are provided with the required food truck loans taking into account the current interest rates. Rates can vary significantly according to the creditworthiness of the applicant, this means that if the applicant has good to excellent credits then he or she would be provided food truck loans at quite favorable rates.
Lightstream is a preferred channel to get personal food truck loans. Eligible applicants can get low rates and no fees as well. An additional benefit of applying at Lightstream is that the company’s rate beat program offers loans at 0.10 percentage less rates than any other company. There are no late fees levied on you if you by mistake get late in the payment of the loan. It also gives you 24-144 months to repay the loan depending on the amount of the loan and your capacity for repaying the loan.
- Business Term Loans:
Business Term Loans are suitable for those food truck businesses that require specific funding for a particular business cost. A term loan allows the applicant to take out a lump sum amount that will be repaid in the whole by the end of the agreed-upon time duration. One such firm that provides such business term loans is Lendio. India is the largest small business loan place. All you have to do to get your food truck loans is fill out online government grants for food trucks application form that will hardly take you 15 minutes.
You will be provided a list of lenders from which you would be given a choice to select a lender of your choice. Approximately 300 lenders are included in this list and all these lenders are verified and trustworthy parties. They include lenders like PayPal, Bank of America, and American Express. These loans will be provided to you in less than 24 hours once you submit the application form along with the required documents.
Food truck grants have really been a blessing for budding entrepreneurs and those who are in the business for quite a time now. These food truck grants not only provide funds to the applicants but they also fill the applicant with confidence to achieve their dreams. Government grants for food trucks also have done some appreciable work in the field of helping the needy. All these food truck grants and food truck loans have been helping aspiring businesspeople for quite a long time now.
For more information regarding the food truck grants and food truck loans, you can contact the respective agencies and firms. They would be able to provide you a detailed overview of these grants and loans.
Frequently Asked Questions
Is buying a food truck a good investment?
Anything in the food and hotel industry is profitable. So yes, a food truck can be a profitable and better investment.
Are food trucks still Profitable?
It depends on the factors like labor costs, the weather, commission, food waste, parking fees at specific events, and accounting issues. But yes it can be profitable if everything goes well.
Where are food trucks most Profitable?
Food trucks are most beneficial in Portland, Oregon.
What type of food trucks make the most Money?
Food trucks that sell their items at cheap rates can make the most money.