Congratulations, you did the research, wrote a worthy application, and were awarded a small business grant! Or perhaps you hope to get one and find yourself currently searching for options. First, do the homework and learn more about small business grants -- especially what to look out for once you get one.
No matter where you are at, like most processes in life and business, the grant journey only begins after receiving it. Managing your grant money efficiently is one of several keys to successfully using that money to nurture your company’s growth. At Fundid, we’re not just here to point you toward grants but to be a guide through the entire process. That’s why we broke down a few key questions and fine-print details to focus on once that grant money is in your business account.
What are the grant limitations and obligations, especially legal ones?
Obligations (or, what you as the grant awardee are required to do after receiving that money) depend on the type of grant. Any organizations or individuals awarded Federal funded grants need to submit financial status reports and some organizations are also subject to audits that look at operations. Learn more about both and find forms at this US Department of Health and Human Services (HHS) website.
What are the spending limitations for the grant?
Again, this answer depends on the grant type, but you should learn these limitations before you apply. Often, after receiving a grant, you will be paired with a grant representative. It’s crucial to find out who that is and begin a cordial relationship with them as soon as possible. Learn more here from this Iowa State University guide.
What must be reported in terms of spending and progress?
Most trustworthy grant organizations will check in with you after awarding the money. Be prepared to have check-ins where you submit or discuss spending about key areas of your business on a monthly or quarterly basis about how close you are to achieving the goals stated in the application. This article covers the pros and cons, including reporting, in finer detail.
Use a Grant to Fund Your Small Business
Are you looking for ways to fund your small business? At Fundid, our goal is to help small business owners access funding options to grow. Search for grants in our Grant Marketplace to find grants for start-up or expansion capital.