How To Get A Small Business Grant

How To Get A Small Business Grant

Why should an entrepreneur know how to get a small business grant? Apply successfully, and you get free money. If your small business is going to succeed, it needs cash.

One of the main reasons for business failure is lack of funds. A sure-fire way to avoid this is to secure ample funding of course. A small business loan can be the difference between making $100K a year and business closure.

Business grants are the best of both. They provide business owners with funding for a new business that does not require repayment. Let us introduce you to the business grant.

1. Define company plan

If a corporation or non-profit organization is going to give any money away, they want to ensure the recipient is the most deserving. They will look at several factors, but one will be your business plan.

Necessary for overall business success regardless of you grant pursuit. It will spell out for you and any investor, how you turn your small business venture into a sustainable company.

Before approval, they will analyze your worthiness. And they can get a good glimpse with your business plan. What do you hope to achieve in year #1 or year #5, and beyond? Are your goals attainable? Is your team in place and ready? What have you achieved those far that is noteworthy?

Your plan will answer all these questions concisely. To be awarded any grant will absolutely require it.

2. Get legal

Any credible grant opportunity will require your business to be in good legal standing. What does this mean? It’s simple, you must be incorporated, possess any required business licenses, have an EIN number, Dun & Bradstreet number, etc.

Besides protecting themselves from potential lawsuits if you are found to be lacking any of these, those that do are more inclined to be successful. Makes sense that if your company already maintains a good legal standing that you will be a good steward of the grant as well.

You cannot escape the responsibility of tomorrow by evading it today. Abraham Lincoln

3. Conduct research

Check what’s available on a national, state, and local level. The US Chamber of Commerce for example list a huge amount of grant opportunities on its site. You will find grants for minority-owned firms, woman-owned firms, military vets, and more.

“How to get SBA grant” is a search term. But it does not provide as much, in the way of results, as the U.S. Chamber above and Grants.gov. These two sources provide a mountain information on how to get a grant to start a small business.

States like Georgia and the Georgia Department of Economic Development are a good source for yet more money. But Georgia is just an example. A quick search will undoubtedly uncover a grant source for your home state.

And remember it doesn’t stop at the federal and state levels. Look at cities in your geographical area as well. Many empowerment zone programs exist throughout the country.

In addition to these grants, many corporations have programs too. Firms like Amazon, Walmart, and FedEx donate tens of thousands each year to companies that positioned to make a difference. So, get started reviewing what grants you qualify for.

4. Watch out for scams

Scam artist know you are looking to get funding for a small business. So, be aware of any site asking for money in exchange for the promise of a grant approval. Legitimate grant sources are free and will never ask for any payment. And as covered just above, many of these sources are government agencies.

If it sounds too good to be true it is. Run, don’t walk away.

5. Become a grant writing expert

The last step to learning how to get a grant to start a business is mastering grant writing. This is simply your ability to give any review board what they request. Your writing must be spot on and clear.

First, you’ll want to confirm that you’re a good match. So, resist the temptation to just apply haphazardly. Second, follow the instructions to the letter. You don’t want to disqualify your company on a mere technicality. Next, you’ll want to clearly state what the purpose of the grant will be.

Grant writing is not rocket science, but there are dos and don’ts. Unless you have previous experience, expect some ramp up time to perfect it. You’ll know you’ve got it when your company get approved for its first grant.

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