How To Get Grants For New Businesses

Starting out with a new business, being your own boss, and deciding how the company is run it can all be very exhilarating. Till the time the question of funds crop up. While loans and venture capital are still the most popular ways of funding a new business, you can also consider applying for grants.

What is a Business Grant?

A business grant is provided to a business or a proposed business after it fulfills certain criteria. It works very much like a commercial loan, except for the fact that you need not repay a business grant. Because the business grant does not burden you with issues like repayment and interest, the competition for these grants is fierce. They are harder to get than loans, and take longer to sanction, since a committee scrutinizes your application first.

Who Offer Business Grants?

Private organizations, business groups and government institutions provide business grants. In the US, though the federal government does not provide direct grants for small businesses, state government and many private organizations help out new businesses by providing grants.

Who is Eligible to Receive Business Grants?

For small business grants, almost all kinds of privately run businesses with less than 30 employees qualify. Whether you run a day care center, photocopying business, or retail from home, you can apply for a small business grant. The only eligibility criteria are that you must be above 18 years of age and a US citizen or resident. You need to submit a well-written business proposal in order to get a grant sanctioned, since you have to convince the grants committee about the feasibility of your business.

How Much Is The Grant Amount?

Typically, a business grant for new businesses, especially small businesses, can fall anywhere from $500 to $50,000. If you are starting a new business, you can get more.

How to Write a Business Proposal:

A business proposal is crucial if you want to avail the benefits of a grant. A business proposal details how to plan to run, organize and get fund for your business. You need to mention how much money you will need, how much you hope to earn through your business, what kind of business model you will follow, how many people you will employ, insurance policy, business failure planning and other information. If you have no prior experience in running a business, then you may want to consult a small business advisor while drafting a business proposal.

Entrepreneurship is vital to the economy of any nation, which is why governments and private institutions provide grants to dedicated people who want to make a success of their new business. If you are keen on making your new business a hit, then there should be no problems in getting your grant application approved. In order to locate a suitable grant, and for drafting a business plan, you may need to consider a small business expert who can guide you.