You can apply for a small business grant from a variety of sources—the federal government, your state or city government, and a wide range of private foundations, charities, and corporations. Once you’ve found a grant that you are eligible for, you’ll typically need to apply online and attach a number of documents.
Business grants can be very competitive, so it’s worth spending the time to make your application as thorough and professional as possible. Grant applications can be quite time-consuming, but business grants have several key advantages over small business loans; most importantly, grants don’t need to be repaid.
Key Takeaways
- There are essentially four steps in applying for a small business grant: finding a grant you are eligible for, collecting the relevant documents, writing the application, and waiting.
- Most donors, including federal and state governments, will allow you to submit your documents and make your application online.
- You can maximize your chances of receiving a small business grant by doing in-depth research on grant opportunities, thinking deeply about how and why you are applying for a grant, and spending the necessary time on your application.
- Keep in mind that small business grants can be highly competitive—especially those offered by the federal government—and it’s unlikely that you’ll be successful on your first application.
How to Find a Small Business Grant
The first step in applying for a small business grant is to find one for which your business is eligible. In fact, this might be the most time-consuming part of the application process. Most small business grants are designed to meet the specific objectives of the donor organization and therefore can have very specific eligibility requirements.
To find a small business grant, you should check several sources:
How to Get a Small Business Grant
Once you’ve found a small business grant you are eligible for, it’s time to apply. The wide range of donors and available grants makes it difficult to describe the “average” process for this, but in general the process can be broken into three main steps.
1. Check your eligibility
This may sound obvious, but it’s a very important step in the application process. Most business grants, whether from the government or private donors, are designed to achieve the specific objectives of the donor, and have correspondingly specific requirements for who can apply. You should therefore read the eligibility requirements very carefully.
Most grants have requirements when it comes to your business location and size, and the industry you work in. Some also have “match” requirements, where you are obligated to match the funding you receive from the grant with investment from your own funds. Some grants require that your business be owned or run by women or someone from a minority community, and others may even require that you are a member of a specific organization before you can apply.
If you have any doubts at this stage, you should contact the grant administrator, because you don’t want to waste time applying for a grant that you are never going to get.
2. Gather appropriate documents
Most grant applications will require you to submit a number of key documents in support of your application, so you should make sure you have these before starting your application.
The most common document is a business plan. This should prove that your business is stable and well-run, and has feasible plans for growth. The business plan you submit as part of your grant application should also explain why you are applying for the grant, how it will help your business develop, and how you plan to use the funds.
Other documents that might be required as part of a grant application include:
3. Complete the grant application
Once you’ve found a grant you are eligible for and have all the necessary documents at hand, you can actually start applying.
The complexity of your grant application—and the amount of time you’ll need to spend on it—can vary a lot depending on the kind of grant for which you are applying. Grants from the federal government, for example, are highly competitive and can be for significant amounts of funding. In order to ensure that these grants go to the correct businesses, the process of applying for these grants can be quite complex.
Whichever type of grant you apply for, however, you’ll likely have to answer a series of open-ended questions about your business and how you plan to use the grant. Some applications will also ask how your business fits into—and contributes to—your local community.
Tips for Qualifying for a Small Business Grant
Since business grants are such an attractive source of funding for small businesses, they tend to be very competitive. This is especially true for federal grants. State and local grants tend to be less competitive, but in order to maximize your chances of a successful application you should still take the application seriously.
Here are some tips on making your application as competitive as possible:
While all these considerations can seem like a lot when you first start applying for grants, most businesses find that it gets easier with time. Once you have all your documents at hand and are accustomed to writing in a way that donors understand and like, you’ll find that applying for grants becomes significantly easier and ultimately more successful.
What Is the Most Common Small Business Grant?
The Small Business Administration (SBA) offers a variety of grant programs to support small businesses. The most popular federal grant program is the Small Business Innovation Research (SBIR) program, which provides funding for research and development projects.
What Is Considered a Small Business?
In accordance with SBA regulations, the majority of manufacturing firms employing 500 individuals or less, as well as non-manufacturing enterprises with average yearly earnings below $7.5 million, will meet the criteria for classification as a small business.
Why Would a Grant Be Denied?
There are many reasons why a grant application can be unsuccessful. You may not be eligible for the grant, or you might not have made it clear enough how the grant will support and develop your business. Alternatively, it could be that your application was great, but the donor received so many applications, they were unable to fund you this time.
What Are the Chances of Receiving a Grant?
The answer depends on the type of grant you apply for and the strength of your application. Federal grants, in particular, can be highly competitive, so only a small number of applications will be successful. If you are consistently denied a federal grant, it can be worth applying for state or local-level funding instead.
The Bottom Line
There are essentially four steps in applying for a small business grant: finding a grant you are eligible for, collecting the relevant documents, writing the application, and waiting. You can maximize your chances of receiving a small business grant by doing in-depth research on grant opportunities, thinking deeply about how and why you are applying for a grant, and spending the necessary time on your application.
This content was originally published here.
