Business grants are assisted financing programs usually provided to entrepreneurs seeking to start a new business without the need for the entrepreneur to repay the granting institution. By its nature of not requiring the grantee to repay the granting agency, business grants are considered “non-repayable contributions”.
Usually business grants are given by government organizations as part of their financial assistance program to invigorate small businesses that wish to launch or expand. Also, potential grantees are subjected to a lengthy screening process which screens eligibility based on location, to-date sales revenue, years in the business, ethnic affiliation as well as the actual reasons why a business grant is being sought for.
If you are looking forward for possible business grants, chances are that the application process will be fairly involved, and may take away some time from core business processes such as marketing and sales. There is also the risk that the grant application will not be accepted, and the length of the approval process of the business grant discourages many potential grantees from even pursuing this route.
That being said, government agencies usually offer business grants particularly towards business development innovations as well as rural business development. Usually businesses with smaller needs for funding are prioritized over larger projects, which require more time to be approved. These approved business grants can then be used to acquire land, perform construction or infrastructural development, project development, capital infusion, income support for entrepreneurs, payment for rental and other expenses, and technical and training assistance – often times the main requirements of any starting business.
Here are some tips for pursuing business grants:
1. Satisfy the requirements for the application of the grant. Not providing complete details and requirements will only cause unnecessary delays in your application for grant. In the worst case, it may even disqualify your application from even being considered for review.
2. Know the funding limits of the grant, as well as concerns of the granting agency. It is best that you conduct some research about the granting agency and their disposition.
3. Have a well-thought and thorough business plan. Remember that you have to convince the agency that your business will benefit the granting agency once they approve your grant application.
4. Be credible. If necessary, have experts assist you in applying for the grant.
5. Keep following up the status of your grant application.
Business grants when approved, are like magic pies from the sky falling right on your lap. Applying for business grants, however, is no walk in the park, and requirements for satisfying conditions of the grant do not just appear out of nowhere. This requires fortitude, patience, and definitely a lot of luck. Thus there is no room for the weak of heart or the impatient in applying for business grants. If possible, consider other sources of funding, such as loans, personal credit lines, or the old-fashioned personal loans from family and friends.
