Small Business Resources: Applying for Grants
By Michele Blandino
One of the biggest challenges facing virtually all new entrepreneurs is the ability to raise the money required to get the business off the ground. Many will turn to small business loans and other forms of credit in an attempt to obtain the needed capital, hoping that the business brings in enough revenue to repay those loans.
What many people don't realize, however, is that it may be possible to secure all or part of the needed funding without having to repay a penny. There are many entities - primarily government organizations - that make grants available to small businesses that need financial assistance to either get started or stay in business.
The Application Process
As would be expected, the application requirements for small business grants are relatively stringent and the competition for the available money fierce. To qualify, you must meet very specific criteria that is established by the entity or foundation sponsoring the grant. Depending on the specific grant, it may be months between the date you make your application and when you receive notification of the award, meaning that you should also look for alternative sources of funding.
Identifying and applying for grants can be an extremely time consuming process. Grants are awarded based on a number of different criteria, including the nature of your business, your geographic location, and even ethnicity. While the specific application criteria differs by entity, you can be expected to divulge budget information, including revenue and expense projections, an accounting of your assets, and other types of information that you would not ordinarily share.
Chances are, the entity funding the grant will also want to know specifically how you plan to spend your award. The better you can describe your plans, the greater your chances of receiving an award.
When You Receive the Money
It's important to know that if you are lucky enough to be awarded a grant for your business, your responsibilities do not end once you cash the check. Most entities and foundations that award grants will require an accounting of how you spent the money. In fact, if your award is of a substantial amount, you may only receive a portion of the award until that accounting has been completed. The timeframe for filing this report varies by foundation; you will be apprised of your obligations when you receive your check.
Where to Begin
One of the first things you should do is take a grant writing course. Check with your local chamber of commerce to see if they offer grant writing workshops; these are usually offered free-of-charge or only require a nominal registration fee.
To identfy grant opportunities, you can begin with these websites:
