How to Find and Apply Small Business Grants
Grants are free money that businesses can receive from both public and private sources, with eligibility requirements that take into account factors like size, location, financial motivation, structure and ownership.
Local grants may be easier to apply for as they typically have lower competition than national grants. Begin your research and gather all required documents.
What is a small business?
Small businesses are any independently-owned and operated companies that fall below a certain size threshold, often measured in employees or average annual receipts (depending on industry). To be considered small for government contracts or loans, additional requirements such as registration with System for Awards Management or compliance with federal regulations must also be fulfilled.
Size standards for grant programs established by the Small Business Administration depend on which grants they're applying for; disaster relief grants require businesses to be small in order to qualify, while other grants target socially or economically disadvantaged businesses.
Definition of Small BusinessDepending on your business type, such as research or technology development, qualifying for grants requires meeting various SBA criteria of "small business concern." In order to access such programs, specific criteria will be listed on each application form - these may include the minimum number of employees or annual revenues needed before being considered a small concern and how NAICS codes classify grant programs - this process can become complex with your employees changing year after year and revenue fluctuating yearly.
How to find grants for small businesses
Small business grants provide your company with free money that you can use for salaries, stock purchases and customer acquisition. But they're no free lunch - finding and applying for them requires effort and time - with many types of grants out there it is vital that you research each one thoroughly to fully comprehend how they're distributed and awarded.
One way to begin your search for grant programs available in your industry or location is to research available grants. Some grant opportunities are offered by private nonprofit organizations while others come from local, state and federal governments; additional grants may even target specific demographics like women, minorities or veterans.
When applying for grants, ensure you have all of the required documents ready. Review past winners to gain insight into what grant administrators look for as well as your chances of being successful.
Another crucial tip for applying for grants early is applying as early as possible. Many grant programs only have limited funds available and once those have been utilized will no longer accept applications - this can be especially true of federal grants that often attract hundreds of applicants. You should try finding one tailored specifically to your needs or consulting with professional grant writers on writing your grant proposal application.
How to apply for a small business grant
Grants provide small businesses a way to expand without the added strain of repayment, helping with startup costs, expansion efforts, research & development efforts, as well as supporting research & development efforts. But grants can be competitive processes; therefore it's crucial that applicants read all criteria before applying for grants that align with their business goals and read application processes carefully in order to select appropriate grants that align with them - also take your time with this application process and ensure all information provided is complete; incomplete applications may be rejected.
Start searching for grants with government agencies and foundations that distribute funding. They often have specific criteria they look for when awarding grants, such as minority-owned business or environmental impact initiatives. Furthermore, you could potentially also secure funding through large corporations and financial institutions.
GrantWatch can be an excellent way of quickly and easily finding federal, state, local, foundation, and corporate grant opportunities. Furthermore, you can contact your local Small Business Development Center (SBDC) for additional details and help with applying. SBDCs feature experts that are trained in helping small business navigate all their financing options available to them.
How to win a small business grant
Finding and applying for small business grants can be time consuming, so research must be conducted thoroughly to submit an effective application. Application processes vary depending on sponsor and grant requirements, but often a detailed business plan must be included as part of your submission in order to explain how funds will be spent while also taking into account any possible ramifications for the community.
As part of your application for grants, you may also need to provide information on your company's history, revenue and finances. Some grants require matching funds; it's important that you evaluate whether you can put up additional money prior to applying. It is wise to seek assistance from community business organizations who can help find grants and prepare the paperwork needed for submission; you could even consider hiring professional grant writers if the cost is within reach.
State and local governments often offer grants for small business grants to their constituents, so you should also consider these possibilities. Furthermore, private entities and charities frequently run small business grant programs tailored specifically to particular entrepreneur demographics or industries - for instance Nav, an online financing marketplace for small businesses, awards one $10,000 grant every quarter to an applicant who meets its qualifications; other organizations offering such grants include National Association of the Self-Employed (NASE) and Halstead Grant.
