How to Obtain Small Business Grants

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By Cinda Roth
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Obtain Small Business Grants

Money is everywhere, you just have to be creative. There are grants available for small business, it just takes a bit of work to get them.

Difficulty: Easy

Instructions

Step 1

Federal Grants- While there are typically no grants from the federal government for small for-profit business development, there are many grants you may be eligible for. You just need to think outside of the box. Instead of looking for a grant specifically for a new business, look for grants that match your business's goal. For example if you want to start a daycare, look for child education grants. You may apply for a federal grant to provide education on eating habits and use it to fund DVD's, play food, and toys for your daycare. Many federal grants can be found at http://www.grants.gov. Remember when you are reading the grant to note if they give points for small business applicants- many do.
Step 2

State grants- Think about if your business will help solve a problem. An example is a recycling business may help with waste diversion goals of the state. Then look for state grants that target these goals. Look at your local state website for a list of grants. Particularly look at the state development offices.
Step 3

City and county grant- Many times if you have a strong business plan you can qualify for grants from your city or county. Check their website. These grants tend to focus on economic development and increased job opportunities.
Step 4

Foundations- Think about what problems exist and what your business would do to solve the problems. Then look at foundations that also focus on those problems. Many times they offer grants that even a for profit business can apply for.
Step 5

Library- Check your local library for resources such as the Directory of Corporate Giving, Foundation Director, and other directories that list grants. Then see which ones you are eligible for.
Step 6

Never give up- If you can not find a grant that meets your needs, make one. Locate corporations and foundations who would benefit from having a business such as yours (perhaps potential supplyers or customers) and ask if they accept unsolicited grant proposals. Many will, if approached, accept an unsolicited proposal. In most budgets there is discretionary funds, your job is to make sure they give those funds to you as a grant.
Step 7

Final thoughts. One you find a place to apply for a grant at, make the most of the opportunity. Provide complete, detailed, and accurate information in the application. An incomplete application could at best delay the process and at worst make them wonder about your ability to operate a business. Next call the grant contact and find out what their focus is and what they are looking for. This will enable you to write the grant in a way to meet their need. Make sure you have a well thought out and prepared business plan to submit to them. This should clearly show how your business will benefit the grant maker. Last but not least, keep in touch with the grant maker. In some cases they have fall through funds (fund that were awarded but the awardee did not need afterall); you want to make sure that you are the first person the grant maker thinks of when they have that extra money to give away. Additionally, it will keep the communication lines open so that you can find out what they look for when awarding grants, and more importantly what you can write in order to get the grant.