Grants are an exceptional way to secure funding for your small business because it is money that does not accrue interest or need to be paid back. In most cases, the organization that issues the grant can dictate what the use of funds should be, making grant awardees a niche group of people that would benefit from it the most.
Where to Find Small Business Grants
To know where to look for a grant, first you must understand who provides small business grants. According to SCORE, the top three funding sources are the federal government, state and local government, and private organizations and foundations.
Finding and securing a grant is a timely task that requires extensive research. Grants aren’t considered ‘easy’ money just because they are free; they typically have lengthy application processes with strict requirements.
Grants can be found on sites such as:
How to Apply for Small Business Grants
Before you begin applying, it’s essential to understand that the grant lifecycle consists of three phases; pre-award, award, and post-award phase. If you catch a grant too far into its lifecycle you might have to wait to apply next year.
Pre-award phase only comes after you have identified the grant that you will be applying for. In this phase, you are carefully reviewing the grant requirements, collecting documents, and filling out your application.
Award phase is when the administrators of the grant evaluate and decide who will be awarded the grant. Separate from eligibility, they also assess whether the recipient will comply if they are awarded the money. Awardees are notified they have been selected in this phase.
Post-award phase consists of the recipient receiving funds and reporting all requirements necessary to remain in compliance such as progress reports, financial statements, and other required documentation.
Keep in mind that most small business grants do have to be reported to the IRS as an income for that tax year, unless you are an exempt business. While “free money” sounds appealing, grant application processes can be challenging and competitive, but the reward is vast! In the right scenario, securing funding with a grant can propel your business twofold.
Frequently Asked Questions
What is a small business grant?
Small business grants is funding that does not accrue interest of need to be paid back. However, the organization that issues the grant will have requirements of how to use the money from the grant.
Where to find small business grants?
Small business grants can be found from federal, state, local government, and private organizations and foundations. Grants can be found on:
What is the process of applying for a small business grant?
Each grant has a grant cycle that consists of three phrases; pre-award, award, and post-award. If you catch a grant too far into its lifecycle, you might have to wait to apply next year.