Steps to Get a Small Business Grant

1. Have a clear business idea
2. Define your personal status
3. Consider being a non-profit
4. Search for grants
5. Register as a grant applicant in the Federal government
6. Log in the federal grant application system
7. Request the necessary application forms
8. Write your grant proposal
9. Create a business plan
10. Fill out the optional grant forms
11. Review everything before submitting
12. Wait for the results

For entrepreneurs, getting a business grant is like catching a dodo bird. It simply would not happen. If you consider the requirements for loans to be very stringent, it is even more so for grants.

These are usually for very specific businesses like technology or medical-related, most of which are not even available for starting or growing businesses. Providers of grants are generally more willing to invest on established businesses with proven track record to minimize the chances of the money going to waste.

However, the field your business is in is not the only criterion they may look at. Currently, there exist a number of grants for woman-owned and minority-owned businesses. Thus, if you fit that more generalized category, you may have an actual chance for approval.

What are small business grants?

Small business grants are monetary incentive offered to certain businesses, depending on the set criteria for qualification. The set credentials are usually meant to further a particular agenda of an agency, may it be public or private.

There are different types of grants, and their classification is based only on the source of the money:

• Federal grants
• State and local grants
• Small Business Innovation Research (SBIR) grant
• Corporate and nonprofit grants

Although the grant is awarded to you, where you can use it is limited. The money is not meant for paying off business debts, starting or expanding your business, or covering operational expenses.

Small Business Grants for Women

Aiming to even out the playing field in the business sector, many institutions both public and private provide grants specifically for women entrepreneurs. The most basic requirement to be considered a woman-owned business is at least 51% ownership of the company. There are two major third-party certifiers like WBENC and NWBOC. However don’t forget there are also business loans for women.

How to become certified?

1. Know what level of certification you need

What you will need depends on your area of service, and on whether or not you will pursue government contracts as a women-owned business. If you only serve in a particular area and have no plans in entering government contracts, you do not need a national level of certification.

To make thing easier, simply ask yourself, what is your target market? If still unsure about what exactly you do need, you can always inquire on local agencies about what best fit your situation and about the certification requirements.

2. Compile, complete, and submit all the requirements

Depending on the type of certification you plan to get, you will have to prepare different documents for submission. Most importantly, the information provided must be complete and accurate.

Show your professionalism by organizing the documents a certain way that you feel will help the certifiers review them quicker. Also, expect that something will go wrong, perhaps they will misplace one of your files. Thus, it would benefit you to keep copies just in case.

3. Prep yourself up for the interview and site visit

If everything is in the clear regarding your paperwork, you will now have to prepare for an interview and site visit. They may choose to do this by surprise or by setting an appointment with you.

No matter the case, you will have nothing to worry about if you have nothing to hide. In the interview, just be confident and address all their questions clearly. Other than that, you have nothing to worry about.

4. Wait for the results

Now that you have complied with everything, the only thing left to do is wait for the results. Applications are hardly ever denied, when they are, reasons behind the rejection.

Moreover, you will be given thirty days to either contest their decision or make the necessary changes.

Small Business Grants for Minorities

According to the California Public Contract Code, a minority is defined as follows:

 “a citizen or lawful permanent resident of the United States who is an ethnic person of color and who is: Black (a person having origins in any of the Black racial groups of Africa); Hispanic (a person of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish or Portuguese culture or origin regardless of race); Native American (an American Indian, Eskimo, Aleut, or Native Hawaiian); Pacific-Asian (a person whose origins are from Japan, China, Taiwan, Korea, Vietnam, Laos, Cambodia, the Philippines, Samoa, Guam, or the United States Trust Territories of the Pacific including the Northern Marianas); Asian-Indian (a person whose origins are from India, Pakistan, or Bangladesh); or any other group of natural persons identified as minorities in the respective project specifications of an awarding department or participating local agency.”

The same with women-owned businesses, to be considered as such, 51% of the ownership must belong to minorities.

This goes for all third party certifiers and other pro-minority programs including a) SBA 8(a) Business Development Program, b) National Minority Supplier Development Council Certification, c) Department of Transportation’s Disadvantaged Business Enterprise Program, and d) State and Local Programs (MBE).

As the process is generally the same for both women-owned businesses and minority-owned businesses, we would instead discuss the differences among the qualifications of the third party certifiers.

Third Party Certifiers and Programs

SBA 8(a) Business Development Program

SBA requires a 51% direct business ownership of the minorities’. Aside from that, there is also a minimum time of operation of two years.

Meeting these qualifications would not suffice for this program. The business must also prove its growth potential through tax records. If your business fits everything mentioned, you can enjoy free certification, something it does not share with other certifiers.

National Minority Supplier Development Council Certification

If at least 51% of the business is owned by people having Native American, Asian-Indian, Hispanic, Black, and Asian-Pacific heritage, that business can qualify for this certification. Of course, documents proving the heritage would be required.

The cost for this certification ranges from $350 to $1,200.

Department of Transportation’s Disadvantaged Business Enterprise Program

Available to minorities, women, and people with disabilities, your business can qualify for this certification for as long as you yourself are running and managing the firm. This, you can prove through a site visit.

State and Local Programs (MBE)

Having the most relaxed requirements, State and Local Programs offer the same advantages to minority-owned businesses as the other certifications and programs.

Business grants particularly for minorities

Unlike with the women-owned business, small business grants for minorities may not cover all sectors.

The Rural Business Enterprise Grants (RBEG) Program

This program aims to encourage growth, increase the income, and generate jobs in rural areas by granting funds to small businesses within a particular location. While people from rural areas are not minorities in the strictest sense, the grantor reserves the right to deem a group of persons as one as he sees fit.

The money acquired here can be used for all business expenses like expanding the business, financing equipment, and constructing a physical store.

The Miller Lite Tap the Future Business Plan Competition

Minority-owned businesses can have the opportunity to expand their operations through Miller Lite. With a goal of helping minority entrepreneurs boost their financial status, they hold an annual competition where the winning business plan gets the funds to execute it.

Small Business Innovation Research (SBIR) Grants

Encouraging minorities to delve into the exciting world of science and research, your business can have the opportunity to implement their innovation through this grant.

For the first phase, you can receive as much as $100,000, and another $750,000 for the second phase.

How do you apply for a business grant?

If you want to take a chance and apply for a business grant, go for it. To get started, follow these steps:

1. Have a clear business idea

As the competition is really strict grants, much more for small businesses. Thus to have a greater chance against every other application, create a business plan. It must be comprehensive, and highlight the profitability of your idea.

Aside from these, it should also include information about your business, its financial needs, and its operation. If you do not know how to get started, you can contact U.S. Small Business Administration for free business assistance.

2. Define your personal status

If you are a woman, a minority, a veteran, or disabled, you can accelerate your grant application process through special grants. If you do not fit in the criteria required by non-minority grants, this would give you hope that you can still apply.

3. Consider being a non-profit

Being a nonprofit opens a lot of doors for you. There are very specific grants, in healthcare for example, that you will be available for you. If your business can fit the model, its operators will receive a fixed salary and generous benefits. That is regardless of whether you get a grant or not.

4. Search for grants

There are a number of grants that you can apply for in various government, commercial, and non-profit agencies. While it may be discouraging to see a lot that you do not qualify for, you should still review every entry.

For local, state, and federal grants, you can visit Grants.gov, the official federal grant website. Other non-government agencies that have grant programs will have the information posted in their official website.

You do not need to check each of their websites to know whether they are open for applications or not. A simple google search will show you a list of grants available depending on your field.

5. Register as a grant applicant in the Federal government

If you are going to apply for a federal grant, you will need to register first in their website. Provide all the necessary information as required, but make sure that when you apply, you will maintain consistency. hat means same email address, home address, and such.

After a few weeks, you will receive a notification indicating whether your registration is approved or not. If you have successfully registered, you will receive a unique username and password which you will use to access the federal grant application system. Needless to say, this step is unnecessary the grant you are eyeing is non-government.

6. Log in the federal grant application system

Here, you can start downloading the instructions that you must follow for grant applications. In some cases, the application forms themselves are there as well.

7. Request the necessary application forms

For state grants, they do not usually provide information. Thus, you will need to go to the agency’ office to request all the necessary application forms for a particular grant. Commercial grants, on the other hand, may have all the information listed on their website.

8. Write your grant proposal

Now that you have all the forms, write your grant proposal. The main goal of your proposal is to express how the grant money will help achieve its designated goal. Of course, this should be shown more than in writing.

You should be able to concretize this using a business plan. Address all the how’s and remove all their doubts. Show them the numbers. List everything that can go wrong, and indicate how it will be dealt with. In case it does not work out, do you have a fallback plan?

9. Create a business plan

Whether you do or do not consider being a non-profit, you still need to make a convincing business plan that will show how you plan to spend the money in case you get chosen. Grantors can limit how the funds can be used. Thus, you may have to make multiple variations to fit each grant you are going to apply for.

Here are the essential contents of your business plan that you should take note of:

Executive summary

This is a one-page report detailing everything else included in your business plan. It is the highlight of your plan as sometimes, it is the only thing that lending officers look at. Here, you should include a short description of your company, the system which it uses to gain revenue, as well as the revenue projections. Your marketing efforts, both past and present, must also be in your business plan.

Business description

Describe what your business does and what it is all about. In applying for small business grants, it is important that you sell your plan and your business as well. Let the grantors see how your business and the purpose of the funds are aligned. Show some general information on how it generates income, so that they could see that whatever money handed to you does not go to waste.

Target market and competitive landscape

Define who your potential customers are. Who are they? How old are they? What are their pain points? What are their goals? For this part, a customer avatar would come very useful as it presents a general yet realistic idea of for whom the business really is.

Having an already established name in the market can really help you getting small business grants. However, you can still apply even without this advantage. You must examine your competition. How saturated is the market? How do you separate yourself from the competition? These should be addressed.

Product and/or service

Explain what your business offers, either products or services, whichever may apply. Explain how these would appeal to your audience, and beat the other products available in the market.

What it is that this have that would want people want to buy it? How is it different from the others? Describe how your product or service will help your customers achieve a goal or fulfill a desire.

Promotion, marketing, and sales

Sure, you have an excellent product that exceeds and sets a new standard for your niche. How are you going to let the world know about that? Applying for business grants means taking care of all sides of the business, including promotion, marketing, and sales.

What have you done so far to increase brand and product awareness? Do you have further actions in the future? An example would be an email marketing campaign which consists of five parts that aims to get people to buy the product/service itself and whatever upgrades available. Say, from this, you project a 20% increase in total sales.

There must be continuous efforts on getting your business’ name out there to stay relevant. In this part, detail your action plans and what the expected end results would be.

Management team

Tell the grantors about the minds and talents behind your business. What are their qualifications? How long have they been in the industry? Such information will help raise the grantors’ confidence on your business, increasing your chances of landing business grants.

Financial data

Assuming that you are not looking for startup business grants, you already some information about your current revenues that are available to you. From there, exhaust more information that your grantor may find useful.

Revenue projection and break-even analysis are the very basics that you must provide, and both must be products of accurate data and right analysis tools. Just as important, include here how you plan to use the grant funds to concretize your plans.

While you must fulfill whatever the purpose of the grant is, exhibit the nature of your business as a private earning entity. Thus, along with the grant-related funds, show through numbers how your company will benefit as well.

Appendices

All the related research that you have conducted which were mentioned in the business plan, along with the logos and other images are put here.

Make sure to organize everything according to the type of material it is. All research papers and other studies must go together, and the same way should be done with images and other appendices inclusions.

10. Fill out the optional grant forms

While, as its name entails, it is not required, all additional information you provide the grantor increase your chance of approval. Fill out all the optional surveys. This will show that you really are serious, and that you wish to be as transparent as possible.

These can also help your case as there might be items on the forms that can better explain your situation in ways that your letter and your other documents cannot.

11. Review everything before submitting

Make sure that all the information you provide is correct and complete. Missing information can greatly reduce your chances of approval. For federal grant applications, submit it at Grants.gov. For state grants, look for instructions where you should your proposal should be directed.

12. Wait for the results

After receiving confirmation that you have successfully uploaded your application, the only thing you have to do now is wait. For federal grants, you will have a tracking number, allowing you to know where in the process your application is. On the other hand, non-federal grants will have a contact where you can inquire.

Whether you get a grant or not, you should not be discouraged, like the many who failed here. Your business can still be a success, and who determines that in the end is you.

Government Grants

Other Grant Options

FAQ

During the course of a business’ operation, there are times when the current funds on hand may not be sufficient to cover all of the needed expenses to further operations. In this situation, a small business grant can provide the much-needed funding to help a business stay afloat and even to help it expand.

Small businesses, women-owned businesses, and minority-owned businesses have the option to take advantage of these business-specific grants. However, there are also general grants available for businesses in a variety of different sectors. Learning about how to obtain small business grants can facilitate business owners in meeting their funding goals. A business loan calculator can certainly help in this process. 

Small Business Grant Basics

Learning the basics of what a small business grant is can help you understand whether or not this is the best option for your business funding needs. Every business is different and what works for one business may not be beneficial for another. For this reason, it is essential to do sufficient research and learn the small business grant basics.

Getting Business Grants

Obtaining a business grant is a very secure way of funding your business operation. You can obtain business grants for the purpose of funding your business once you learn the necessary steps you should take. Becoming familiar with the process of obtaining a business grant can aid you in fulfilling your dream of owning your own business.

Starting and Expanding Business

Starting a new venture is an exciting undertaking but it is not without its challenges. One of those challenges is obtaining sufficient funding to keep your business afloat. Learning how to start a business and obtain the funding that your venture needs can help you to pave the road ahead successfully.

Specific Types of Business Grants

If you are applying for business grants under unique circumstances, then you will need to learn the specifics for applying for that type of grant. By learning about the specific types of grants, you can get the type of funding your business needs for success.

Writing to Get a Grant

Many grants require a written proposal before they will award funding to the applicant. Learning how to put together a grant proposal can increase your chances of obtaining the grant that you need for your business. Writing to get a grant can be a very involved process but with the right knowledge, you can move forward through the process confidently.

Miscellaneous Grant Questions

Below are answers to other questions related to obtaining grant funding. By finding out as much information about the grant process as possible, you can be well prepared to apply for a grant for your business needs.