How to Find & Apply for Grants for Starting a Business.

Contrary to what many people believe, grants for starting a business are not exactly free money.

They also are not readily available through the federal government. However, there is money available if you know where to look.

Knowing where to look, how to apply and the requirements to maintain the grant can make all the difference in the world for the small business entrepreneur.

The Small Business Administration - SBA

Many business owners turn first to the Small Business Administration, or SBA, when searching for grants for starting a business.

Government Small Business Grants

However, the SBA does not offer these kinds of grants. What it does do is help supply small business owners with valuable information including free help with business planning and small business loan programs.

It does provide grants for programs that support or enhance small business. These can include non-profit organizations, lending institutions, or state and local governments.

However, there are available other federal grants for starting a business.

Grants.gov is one site that helps small business owners find and apply for grants. In addition an entrepreneur can sign up to be notified when future grants become available.

Another place to search is the "Catalogue of Federal Domestic Assistance, CFDA", and the Federal Register, which publishes recent weekly grants. However, keep in mind that many of these federal grants are aimed at developing new technology or non-profit organizations.

State Grants

The best place to search for grants for starting a business is at the state government level.

These grants are wider in scope, because they are often aimed at promoting the economic growth of the state or region within that state.

At Business.gov, prospective entrepreneurs can enter information into a search form that will help them locate grants by state and apply for those grants.

Applying for a grant

Anyone seeking grants for starting a business needs to understand that they are dealing with a bureaucratic system that will require them to jump through several hoops.

For this reason, many businesses will hire someone to specifically to help them search for and apply for the grants.

This includes making sure the applying business qualifies for the grant and then developing the detailed proposal that will be required.

This generally includes the goals to be accomplished and the steps required.

Business Grant Requirements

Once grants have been awarded, small business owners must continue to work to make sure that the project goes as planned or risk losing the grant as well as suffering financial penalties.

This includes meeting government performance standards, providing detailed accounting records of grant expenditures, staying on schedule and ultimately reaching the stated goal.

Furthermore, any changes made to the plan must meet the approval of the agency overseeing the grant.

As a result, finding and obtaining grants for starting a business is no easy task. However, understanding the structure of U.S. business grants and where to look for them can simplify the process.

Those who are willing to put in the work required to research and then fulfill the grant requirements can really benefit from business grants.

It may seem like a lot of hoops to jump through, but some grants can be well worth the effort.

Ten Business Grant Tips

What's the point in having a great idea if you don't have any cash? You need capital to move your business from an idea to reality.

Here are some great tips to getting your business grant approved.
Businessman Advice and Tips
  • Talk to your local grant agency, local council economic development officer and Business Link to see if there are any grants available in your specific area.
  • Work out exactly what you need the money for because grants won't be provided for general running costs, they will support a specific outcome for example premises, training, trademarking etc.
  • Grants for starting a business are often tied to strict selection criteria such as age, gender, ethnicity, unemployment or have a specific purpose such as research and development or innovation. If your idea doesn't fit the grant criteris, don't try to force it.
  • Make personal contact by phone or ideally face to face with the grants officer and don't just send in your application cold. Talk through your proposition with them to check whether your idea is suitable and if it is worth applying in the first place.
  • Prepare a thorough business plan to bring with you and make sure it stands out from the crowd. Most importantly you will need to present a thought provoking vision, a passionate commitment, clear benefits and robust cash flow forecasts.
  • Know that grants are often handed out on a cyclical basis. Research upcoming deadlines and be prepared to wait several months for a decision don't expect a quick answer because it doesn't happen that way.
  • For larger amounts of funds, one grant will not usually fund ALL of the proposed costs so you will likely have to find more funding from another source.
  • Ask yourself if your business could get off the ground without a grant. Look at alternative sources of finance, such as loans, 0% credit cards, credit unions, friends and family.
  • Never stop monitoring your business. It's easy to get distracted by the allure of grant money and this can become the focus of your energy rather than building your business.
  • Take a steadfast approach because many people convince themselves that the only way to start a business is to raise large sums of money without realising there are other, less conventional routes that can be taken. Think of finding creative ways to support your start-up business until it turns profitable. The key trick here is to start small, start selling and start generating cash to fund your business growth.