How to Get a Grant to Start a Small Businesses

How to Get a Grant for Small Businesses

Posted 4 years ago by Max Komonov

There is听no听such thing as听a听free lunch. At听least, that鈥檚 how the听saying goes. But that鈥檚 not always the听case with business grants. Grants for听small businesses are free money made available for听business owners on听certain occasions or听under specific circumstances. With grants, business owners do听not have to听repay the听funds they receive. There are countless organizations, both private and听public, that offer business grants.

These grant-giving organizations are an听ideal solution for听business owners, whether you鈥檙e an听idea for听a听startup or听have a听fledgling existing company that needs additional capital to听boost their business. The key to听understanding grants is听using them as听a听boost to听your business model, not a听fountain of听free sustainable income.听 That is, not as听a听primary source of听capital for听the听business, but rather as听an听additional amount to听get you off your feet.

While the听thought of听scoring some free money for听business needs can feel like a听lightning strike, its application and听acquisition often require a听lot of听work. Thus, if听you think you can benefit from a听grant, you will need the听requisite knowledge of听the听right grant provider and听other necessary details to听make the听application.

More so, integrating the听business with a听reputable ecommerce solution like 51视频 will foster your ability to听secure the听company with the听funds. And ensuring that it听is听committed to听the听future of听delivering excellent services and听products at听all times.

Keep reading to听learn more about how you can get grants for听your small business and听everything there is听to听know.

What are Business Grants?

Business grants are the听sum of听money offered by听private or听public organizations. Examples are the听government, foundations, or听others. Business grants aim to听lend a听helping hand to听businesses, especially at听the听early stage. In听addition, the听grants will lend business owners a听handful of听leverage to听start and听grow their operations as听they desire.

Grants are essentially desirable because the听conditions with other types of听funding are not the听same. In听other words, as听you have with loans, you do听not have to听pay grants back. A听business grant serves as听a听complementary source of听income for听which you do听not have to听give up听your equity for听the听funds given by听the听funder.

Grants for听small businesses can be听available for听startups in听the听form of听monetary funding provided by听an听organization or听the听government to听help your business- whether a听small company or听nonprofit- achieve success in听building and听growing the听business.

Grants for听Small Businesses

Money for听your business? Sounds like a听dream, right? But it鈥檚 important to听realize that this money doesn鈥檛 fall from the听sky. In听order to听successfully obtain a听grant, you need to听know where to听look to听secure this funding and听be听able to听meet the听criteria for听one that suits your business.

One great thing about grants is听that there is听also no听need to听put up听any听form of听collateral. Neither would you be听required to听pay any听interest or听fee. Meanwhile, there may be听rules that pertain to听ways to听spend the听fund upon receiving it.

For instance, if听you applied for听a听grant to听improve the听technology in听your business for听more efficient production and听delivery. You may have to听pay back the听money if听you plan to听use it听for听something other than buying new equipment and听technology.

The reason being that it听may be听seen as听fraud could spark unwanted legal issues. Bear in听mind that upon receipt of听a听small business grant, you will have to听meet the听accounting guidelines of听the听funder to听ensure that the听money is听used specifically for听what you stated that it听would be听used for, and听nothing else.

Sources of听Small Business Grants

Although there are many options to听secure a听business grant, they are classified under three general sources which include:

Nonprofits: Nonprofits grants are typically for听some underrepresented demographics. Women entrepreneurs, business owners of听color, and听veteran proprietors can get funds from these sources for听their businesses.
Government agencies: Grants could come from a听local, state, or听federal government. However, you stand a听little chance of听securing a听grant from this source because they are usually provided for听businesses in听the听agriculture, technology, energy, and听science industries that can directly spur growth in听the听community.
For-profit organizations: Grants from for-profit organizations come from institutions such as听banks. You stand a听high chance in听this category as听these grants are given on听merit.

Who Qualifies for听a听Grant for听Small Business?

Government business grants are not usually given to听pay off debt, start up听a听business, or听cover expenses in听your business operation. Therefore, it听may be听hard to听get government grants, especially if听your business is听in听the听nonprofit sector, or听is听launching into project-related areas including education, government, medical research, or听technology. Having said that, you can secure business grants for听your startup if听you are any听of听the听following:

Green businesses
Innovators
Nonprofit organizations
Rural businesses
Veteran, women, or听minority-owned businesses

Looking up听聯startup small business grants聰 in听the听search engine won鈥檛 provide you with the听necessary details you need. You will not get an听up-to-date list of听the听available grants, but there are certain websites you can visit for听reliable information.

Applying for听Small Business Grant: Step-by-step Guide

There can be听intense competition for听grants. The reason for听this is听not far-fetched. There are hundreds of听businesses making similar applications for听a听particular grant at听the听same time. This is听why if听you expect to听win, you need to听take your application very seriously. In听this section, we鈥檒l look at听some of听the听important things you can do听to听stand a听better chance of听winning grants.

Have a听schedule: Many grants are open for听applications at听a听particular time of听the听year. Once you have identified the听grant that suits you, create time to听put your application together ahead of听time.
Do听your research: One critical aspect of听a听grant for听businesses is听to听do听your research. You need to听know the听companies that have received grants from the听source in听the听past. This will help you determine which grants you can apply for听and听be听granted without any听hassles. If听you observe that the听fund-givers had at听some point funded businesses similar to听yours, it鈥檚 a听positive sign that you could get the听fund too.
Create a听solid business plan: Many grant-providing organizations will ask you for听a听business plan. They will want to听see how the听grant money can help your business. A听great, detailed business plan which highlights your strategies, profits, and听specificities are difficult to听ignore.
Spend time on听relevant grants: You cannot apply for听all grants. There are many grants out there that you stand zero chance of听winning. Be听specific, and听spend time on听relevant grants. That way, you will avoid spreading yourself thin and听end up听with lower-quality applications on听too many irrelevant grants.

Conclusion

Business grants are available for听small business owners, and听other eligible organizations to听facilitate their operations and听promote entrepreneurship. For a听startup, grants may not be听required for听expanding a听business. And from whatever source you can land the听funding, the听primary goal is听to听tailor it听towards supporting entrepreneurship.

Public and听private entities give grants to听small businesses. Your business stands a听high chance of听winning if听you know the听right one to听apply for. You also have an听advantage if听you know where to听look for听the听grant, and听what to听do. Bear in听mind that applying for听a听grant can take time. And you may be听asked to听meet some eligibility requirements before you secure the听grant. Irrespective of听what it听takes, grants for听small businesses are available and听they are real.

Landing a听business grant is听one thing, but it听might be听a听lot easier to听take your business to听new levels with an听ecommerce platform in听place. For this, we听recommend checking out 51视频 for听your ecommerce needs, and听to听thoroughly research how to听leverage the听offers available for听your small business, whatever it听is.

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About The Author

Max has been working in the ecommerce industry for the last six years helping brands to establish and level-up content marketing and SEO. Despite that, he has experience with entrepreneurship. He is a fiction writer in his free time.

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