What is a Business Grant
A business could fail due to poor management. Or to lack of financial funding to get it through until it becomes profitable.
The good news if you are a small business that has something special about you, you may qualify for money that is given entirely for free by the government or some institutions.
Small business grants are money provided to businesses to help them get started or expand. Unlike loans that must be paid, grants are given for free. That is why it is not often that you can get them easily. You have to go through a lengthy process of applying, complying and qualifying.
Why are business grants given for free?
The putting up of any business has several implications to the general economy of the place where it is set up. First, it will mean creating job opportunities to the locals. Next, it means tax revenues to the government. That is why there are grants especially set up for small businesses.
Where can you find business grants?
And that is why small business grants are channelled through the local government. There is currently no grant directly available from the federal government. Anyone wanting to avail of business grants should look into their state or local office to learn information on how to get access to the money. The web site of the Small Business Administration, though, has a section providing information that can lead grant hunters to the specific agency that doles the money. But the government is not the only entity that provides grants. Foundations, local organizations and financial institutions (like Bank of America) also distribute grants to support certain causes. Recently, Bank of America promised to provide $10 million in small business grants. Sometimes grants are given to help minority groups or women in order to give them an opportunity to uplift their status.
Small Business Grant Requirement
Because the source of grants has a specific purpose in providing the fund, one of the major requirements in qualifying for a grant is: the business must belong to the target group of the provider. It could be medicine, security, or education. Another deciding factor is whether the business supports the economic growth plan of the place from which it is applying for a grant. Still another is whether the establishment of the business is vital to the overall progress of the place. And basic of all, whether the business promises to be viable in the long run.
Qualifying for a grant could prove challenging. First, there is the basic requirement that could be too specific for only certain businesses. Then there is the application process that will require an investment of time and effort. Anyone wanting to apply for a grant must realize that this is a tremendous task. But the rewards could be worth it in the long run.