Small Business Grants
Grants are provided to small businesses by the government or agencies that support and encourage specific niche and industries. Applying and qualifying for business grant is a hot commodity in small business groups because they do not require any payback.
Understanding who, why and where you can get this grant can help increase your chance of getting that financial assistance that you need for your business. These things should also give you the bigger picture on why grants do not require payback.
Who are qualified to apply for financial grant?
Small businesses are among the many organizations that can apply for a financial grant. But before proceeding to the application, the business will first have to qualify as a small business under the definition and parameters provided by the government or the institution who will be giving the funds. The parameters usually include the number of employees and the net assets of the company based on the particular niche or industry. Once you are clear from this, then you can finally proceed to the actual grant application process.
Why is the government or the institution giving financial grant?
Contrary to the popular belief, business grants are not absolutely free. When your business is awarded financial grants you will be bind by obligations and expectations to uphold the interest of the institution who gave you the grant. This is the reason why it is important that you understand the reason why a specific institution is giving away financial grant. This can help you determine whether your business’s goals and niche match up with the institution’s, which can save you from conflict of interest in the near future.
Where to avail small business grants?
- State and Local Agencies — Every state has its own department in charge of the state’s economic development affairs. This department is the best start point for people who are looking for local government agencies that can provide small business grants. In case there are no grants applicable to the nature of your business, the department can forward you to other institutions that could offer low interest financial assistance. Note that the federal government does not typically provide general business grants, your business will have to be involved in specific niches that are within the government’s area of interest.
- Uncle Sam — As I have mentioned before, the federal government does not award grants to businesses for general purposes such as expanding or establishing a new business. The government however, has special funding programs for businesses under specific niche such as development of green products and health or medical research. To get more comprehensive information about the different federal government grants you may visit Grants.gov.
- Opportunity Fund — Non-profit organizations are the next top choice for getting financial grants. In an effort to promote entrepreneurship many non-profit organizations offer financial grants to people who want to start their own business. The organization usually ask interested parties to send in their proposal for evaluation. These proposals are carefully scrutinized and analyzed, whoever has the most lucrative business idea usually gets the grant. Keeping yourself updated about these funding opportunities can help increase your chance of getting the business funding that you’re waiting for.
- Amber Grants —The Amber Foundation is one of the many foundations promoting entrepreneurship among women. The foundation has been around since 1998 providing modest amounts of financial grants that can help women get started with their own small business. There are many similar organizations all over the world dedicated to empowering woman by helping them gain financial independence through small businesses.
- Love a Local Business — Love a Local Business is an initiative of Intuit company that offers financial grants to local businesses. The aim of the program is to get consumers, employees and local businesses to work together. Whoever gets the most number of nominations will be given financial grant. The program has already granted more than one million dollars from the time it was initiated.
Securing grants from public or private institutions can be easy if you know where and when to find them. So you have to make sure that you keep yourself updated about various programs and opportunities that are willing to award small business financial grants. The more organization you apply for the better, this can help increase your chance of getting a funding for your business.
You might want to consider looking into Intuit Loan Finder, The SBA and Multifunding.com , these companies can give you substantial amount of information where you can get additional funding without resorting to bank loans or any high interest bearing financial assistance.
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