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Written by Anna Sonnenberg Reviewed by Noa Kaufman Last Update: November 2024 Are you seeking funding to start or expand your business? Explore small business grant opportunities to fund your startup's growth and development. In this article, we'll cover everything you need to navigate funding opportunities. You'll learn how to get a small business grant, including how to find funding, prepare a proposal, and manage grant funds. What Is a Small Business Grant?A small business grant is funding that organizations and donors give to companies. Think of it as a gift that allows a small business or startup to launch or grow. Depending on the type of grant, you may be able to use the funding for business operations or hiring new staff members. You may also be able to use grants for marketing purposes or capital expenses. Because this type of funding for small businesses is gifted or donated, recipients don't have to repay it. In other words, it isn't a business loan that collects interest and has to be paid back over time.Each grant has different guidelines. But as a general rule, the process of getting a grant involves meeting the eligibility criteria, submitting an application, and reporting on how you've used the funds. Types of Small Business GrantsThere are several different types of grants for small businesses. Review what's available to understand your options. Federal GrantsFederal government agencies provide grants for a wide range of causes. They tend to be larger in size, offering substantial funding for startups and small businesses.
State and Local GrantsState and local governments provide grants for new business owners and small companies in their jurisdictions. They're often smaller than federal grants, but they can also be less competitive.
Corporate and Private GrantsCorporations and private organizations often provide grants as a philanthropic initiative. They often apply to businesses in specific industries only and can be some of the more easy grants to get.
How to Find Small Business GrantsWith so many different types of grants available, finding the right one can be time-consuming. To research grants efficiently, rely on government websites and grant databases like:
While the two government websites are free to use and search, Foundation Directory requires a subscription. However, it's an important tool for locating funding from corporate and private organizations. How to Apply for a Small Business GrantWhether you want to get a start up business grant or a new business grant, you need a strong application. Follow the steps below to navigate the process. Prepare for the Application ProcessBefore you begin writing the proposal, read the application from beginning to end. Confirm the grant is a good fit for your business. Pay attention to these elements:
Once you've confirmed you're ready to move forward, gather the materials you need to apply. If you prepare these items beforehand, you'll avoid unnecessary delays as you complete the application.
Write a Winning Grant ProposalNow you're ready to create the grant proposal. As you write, keep these best practices in mind. First, avoid using generic explanations of your project and your funding needs. Always tailor the proposal to the organization or donor. Grant specialist Jesse Morris recommends "demonstrating clear societal benefits that address an urgent problem in alignment with agency priorities. Lead with this information and you will capture the attention of skeptical reviewers and program officers." Next, explain how you'll bring the project to completion. This is especially important if the grant only funds a portion of the total amount necessary. The National Environmental Education Foundation recommends listing any other funding sources you've secured. Including this information can reassure donors about the project's feasibility. Finally, make sure to include all required sections. A typical grant proposal requires:
For assistance with writing a grant proposal, consider taking a course. Nonprofit Ready offers free grant writing courses. Alternatively, consider hiring a professional writer. Both Professional Grant Writers and Allied Grant Writers offer this service. Meet Grant Requirements and DeadlinesAlmost every grant has an official deadline. This means you have to submit your application by the deadline to ensure the team considers your proposal. In many cases, however, you should avoid waiting until right before the deadline to submit your proposal. Some organizations review applications on a rolling basis rather than waiting until after the deadline. As a result, these organizations may award grants and disburse all available funds well before the deadline. To avoid this situation, aim to apply as early as possible. Once you apply for a grant, make a note of the next steps. In many cases, you can track your application status online. In other cases, you may need to follow up with the organization directly. Manage Grant Funds CarefullyIf your grant application is successful, take a well-deserved moment to celebrate with your team. Then, get to work on your newly funded project. Make sure your team understands the terms and conditions of the grant. For example, you may be required to allocate the funds toward specific activities and personnel. Typically, you'll need to keep detailed records of the project's timeline, goals, personnel, and expenses. Follow the guidelines for submitting this information to meet the terms of the grant. Examples of Small Business Grant ProposalsReviewing successful proposals can give you ideas for how to prepare your own. Here are examples of small business grant proposals that received funding.
Next Steps to Get a Small Business GrantFrom free grants to start a business to grants to expand your company, you have plenty of options for funding. Use the guidelines above to find relevant funding opportunities and write a winning grant proposal. Once you've received funding, you'll be ready to launch or grow your business. Explore our project management tools to keep your plan on track. | _ |