Getting Business Startup Grants

Locating a grant while starting a new business can get really hard at times. Grants can be given by either government authorities at a national or local level or by other smaller organizations. Typically grant money is not repayable and there is no interest levied on it. This does not make grants “free money” and a considerable amount of hard work needs to be carried out to obtain it. Due to a limited availability of grants, the competition for obtaining them is also severe. A tough scrutiny of your application also makes the grant take several months to get sanctioned.

Getting Started

The only eligibility criteria for obtaining a business grant is that you must be 18 years of age and a US citizen, though some grants may restrict the applicant’s age or his geographical location. Sometimes, clauses of personal and professional qualifications can get really difficult to comply with.

Initial homework is of utmost importance before applying for a grant. A business plan is indispensable and must include an overview of the business and its owners’ qualifications and achievements. A comprehensive report of the project that is been undertaken is a primary requirement. It is strongly suggested that you get a professional grant writer for writing a grant proposal.

The applicant needs to show how the grant money will be spent, thus a comprehensive cost analysis is essential. The company also needs to show an estimate of its potential income and target market. Any kind of technical analysis should be done with professional help only.

Agencies providing business grants are rather fussy. Only if you can show that your business plan has a good chance of succeeding, will you be considered for a grant. In short the business should look clear and feasible.

Sources Of Grants

There are various sources of business startup grants that you can tap into. A business startup grant provided by the state is comparatively easy to apply for. There are fewer competitors at the state level and depending on the credibility of your plan, your grant has a good chance of coming through as the state agencies have a good overall knowledge of the industry and market.

Grants offered at the national level are available through federal funding and are tailored to aid non-profits so be careful while applying. The situation may get difficult if you already run a profit oriented business outfit.

In addition, local government departments also offer grants to entrepreneurs with specific needs such as women, minority groups and the physically disabled.

Other Specific Needs

Your business plans must be in sync with the available funding as most grants are tailored for specific needs in a business, for example, purchase of heavy machinery or specific raw materials. An important feature to be kept in mind is that grants are normally not given for the complete project but only for a part of it (about 15% to 80%). Thus the applicant should be aware that he may have to match the funding by providing the rest of the project costs.