How to Obtain Small Business Grants

Rather than apply for a loan to open and operate a small business, consider applying for a small business grant. Small business grants are beneficial because they don't have to be repaid. This is ideal for new business owners or persons who want to start a non-profit organization. Unfortunately, acquiring a small business grant is difficult, and some businesses don't qualify for grant money.

Things You'll Need

• Business plan Grant proposal Grant application

Instructions

1. Search the Catalog of Federal Domestic Assistance (see Resources). The Federal government has a catalog that lists all available grants for small businesses. If you're looking for free government money, search the catalog and see whether your business qualifies. In many instances, grant money is restricted to minority businesses, community-service businesses and rural businesses.

2. Write a business plan. Once you find a suitable grant, it's time to write your business plan. The business plan is essential, and organizations base your grant approval on the contents. The objective is to explain (in detail) how you'll run the business. Include a mission statement, give a business description, outline long-term and short-term goals, discuss potential marketing tactics and provide a financial analysis.

3. Hire a grant writer. After completing your business plan, hire a grant write to create the actual grant proposal. You can write the proposal yourself and save money. However, it's wise to use a professional grant writer.

4. Complete and submit your small business grant application. Be sure to complete all requested files and include all pertinent information. Failure to do so can result in a grant denial or slow the approval process.

5. Be patient. Getting approved for a small business grant is different than getting approved for a business loan. Your application, business plan and grant are reviewed several times and some organizations receive thousands of grant proposals.

Resources

• Catalog of Federal Domestic Assistance