Starting and financing a small business can be difficult, especially with the cutthroat competition in the business field.
You should, however, not lose heart as there are a variety of funding options available from both the government and private entities. Read on for what you need to know about business grants.
Business grants are great financing options available to entrepreneurs who want to start or grow their small businesses. A business grant has several advantages over other funding options like loans.
First, business grants are essentially free money as they do not require repayment. Second, grants are available for all types of small business owners, including women, minorities, as well as disabled Americans. Third, information on the availability of small business grants is readily available online.
Here are some of the frequently asked questions involving the grant life cycle:
How Long Does it Take to Apply for Business Grants?
Grants are difficult to obtain, and you have to write a very detailed grant proposal. The information you will be required to fill in will detail all segments of your business from personnel, operations, as well as finances.
This is a long process that might take you upwards of 6 weeks, depending on the type of grant and the number of hours you dedicate to the application. It is after research, planning, as well as resource gathering.
Most writing does better if you let it breathe. Taking your time is beneficial as you can write, receive feedback and revise accordingly. Take some time away from the proposal, and you will find ways to make it better when you return to it.
Writing a good grant proposal is a slow and steady process. Productivity entails doing something well, not going fast, and this means taking control of your time. You can also have a life beyond writing a grant proposal.
How Long Does it Take to Get a Grant Approved?
After doing all the paperwork and submitting your grant proposal, it is now time to wait. But how long will you wait before you know if you were successful? It depends on where you applied, but expect to wait a minimum of six months.
The time between when you apply and getting a notification will vary since each funding source is different. Most funders have a guideline that indicates the funding distribution schedule. Each foundation has its own timeline, and you can find these on the funder's website.
How Long Does it Take to Receive a Grant?
Received an approval notification regarding your grant application? The next step is fairly easy. The grant funder will set a date for the transfer of the funds upon approval of your grant.
The funds might take one to three months to be deposited into your account. This depends on the payment schedule of your grant source. It will also depend on how long it takes to finish the legal framework for the funding agreement.
When Can You Start Using the Funds?
You can start using the funds as soon as you have received them and finished up on the legal paperwork that dictates how the funds will be spent. Always use the funds as dictated in the funding agreement to avoid legal repercussions.
Grants can be a great way to finance a small business or fund a start-up.
Interested in applying for this kind of funding? You can search for Grants in our Grant Marketplace. There are a variety of grants available that are tailored to meet your financing needs.
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 creating new ways to get small businesses the capital they need to grow and is built from the feedback of women entrepreneurs.