How to Apply for Small Business Grants

The search for small business grants is popular among entrepreneurs, especially those with limited funds and access to capital. The process of finding a small business grant program and reviewing the requirements is time consuming, as is the application itself. Additionally, funding organizations will often take months to review and process grant applications. The grant process for funding a small business is, therefore, a highly competitive process with no guarantee for return on the time invested. However, if you are in search of a grant to start a small business, the following steps will provide you with knowledge and direction.

Instructions

Difficulty: Challenging

Things You’ll Need:

• Business Plan
• Budget
• Motivation
• Patience

A Sound Approach to Small Business Grant Applications

1. Develop a business plan. Strategically planning for your business will help you determine what type of grant you need and how it will support the development of your business. Show the grantor agency that you have given some thought to your request for a grant and that it is a priority. The importance of planning cannot be overemphasized.
2. Identify appropriate funding organizations. Find such organizations as they relate to the nature of your business. Begin your search with the most common grant funding agencies: federal government, state government, local municipalities, community and private foundations, and large national corporations.
3. Determine how to approach potential funders. Make your business intent and activities known to the funding organization before submitting any type of request or application for funds. Cultivate relationships with the organization. Utilize effective communication through phone calls, visits, and/or letters of inquiry to such organizations.
4. Provide a well-written proposal to each of your identified funding organizations. Clearly state the objectives and intended results. Include your strategic plan. Provide the budget for your business and its activities, as well as a proposed budget for the use of grant funds if awarded.

Tips & Warnings

• In the narrative of your grant request, describe everything as a matter of "need". For example, a criminal justice agency could express need in terms of crime prevention or control within a particular locality.
• Bring in outside experts to support your grant application. Utilizing an accountant or consultant can add credibility to your application process.
• The U.S. Chamber of Commerce publishes The Small Business Resource Catalog, a collection of published reports and business and employee development programs. The catalog is free and available by calling [phone].
• Many state development agencies offer direct small business grants and other types of financial assistance designed to encourage and assist entrepreneurs in starting or expanding a small business.
• Grants are generally not available for starting or expanding small businesses, unless your business involves the development of new technology or is a non-profit organization.
• It is extremely difficult to find or obtain grant funding to assist for-profit businesses. Grants are generally given to non-profit organizations with activities that benefit the community or the public at large.
• Don't be fooled by advertisements and promotions that tell you that you can get "free money" just by writing a letter. Grants are highly competitive.