Starting and running a small business can be nerve-racking, especially without a source of funding.
Most entrepreneurs come up with perfect business ideas that could blow up
or solve a current crisis. However, they may be unable to actualize them due to a lack of funds. It’s critical entrepreneurs know how to apply for a business grant. There are various funding opportunities for small businesses, but unfortunately, some tend to charge high interests or demand collateral to secure the loan.
This ends up straining small entrepreneurs or even causing them losses and forcing them to opt-out of the business world altogether.
If you are an entrepreneur looking to start a business or a small business owner seeking to grow your business, read on to know all about business grants and how you can
apply for one.
Read our complete guide to business grants
A grant is money given to entrepreneurs or small business owners by the federal government, states, non-profit organizations, or corporations for either startup, growth, or expansion. Unlike loans, grants are free and do not require any form of repayment.
Government or non-profit organizations sometimes decide to set up grant money to steer innovation in a particular region, encourage minority entrepreneurs in a community, or promote women-owned businesses.
When this happens, the grants are available for all qualified people to apply.
Though they take time and effort to win, grants are a great way for your organization to gain new funding that does not need to be paid back. You can use grant money to start or grow your business. Applying for a grant also provides a great reason to reach out to other organizations and initiatives in your area with similar goals or that are serving similar populations.
Usually, the government gives small business grants to non-profit businesses or entrepreneurs seeking to launch a project in medicine, technology, or education, especially those people seeking to solve an existing problem.
The following demographics and organizations stand higher chances to qualify for a small business grant.
Qualifying for a grant usually requires specific documents. Though different organizations require different documents, the most common include:
After gathering the necessary materials, the next step is identifying specific grants. You can start with grants that are unique to your locality, then look at those offered nationally. After determining the type of grant you want, read through the requirements to ensure you are a suitable candidate. If you qualify for candidacy, then you write a business grant proposal.
It is advisable, if possible, to meet up with the funding source or get guidance over the telephone to explore your idea before writing the proposal. If you are looking for a grant writer to help you with the grant application process, UpWork is a great tool and resource to start winning grants!
Before you begin applying for a business grant, do the following to ensure you increase your chances of being qualified.
1. Get an expert opinionTalking to someone who qualified for a grant before, a mentor, or an expert in the field will help you get acquainted with the “do’s” and “don'ts.” You can also ask them to review your business plan and give advice.
2. Hire a grant writerGrant writers are experienced in this field, and hiring one to write your proposal will give you an upper hand.
3. Get applicable tax-exempt status paperworkThis will help you increase the odds of receiving the grant. This will help you increase the odds of receiving the grant.
You can choose to apply for plenty of grants, including; government grants, general small business grants like the Barstool Fund, or industry-specific funds like the Amber Grant for women. There is a pool of opportunities; you just have to look in the right places.
Are you a small business owner looking to get funding for your business but not knowing where to look? Search for grants in our Grant Marketplace for free.
Fundid is on a mission to get women-owned businesses the capital they need to grow so that we can all close the business wealth gap. While 42% of businesses in the US are owned by women, they only account for 4% of revenue generated by private businesses. We spend our time at Fundid thinking about what the world would look like if women also generated 42% of revenue and how to get them the capital they need to make that happen. Fundid is a challenger business bank, business lender, and grant marketplace built on the feedback of women entrepreneurs.