Start Your Small Business With A Small Business Grant
You can start your small business with money from many different sources of small business grants. Grants are available for many different sources such as federal and state agencies. Usually, these funds are into many different categories. The Small Business Association is the government agency that helps small businesses by directing them to sources of federal or state funding. Financial assistance is intended to help entrepreneurs start or expand a business venture and is more plentiful than is known. Regardless of the need, small business grants can offer the type of money that a small business needs.
A business can be categorized a small business based on general size standards. These standards include the amount of money the business is worth, if the business is geared towards the wholesale or manufacturing trade, and the number of workers the business employs. Most manufacturing businesses that have no more than 500 workers could be eligible for a small business grant. A business that wholesales products that has no more than 100 workers would also be eligible for a small business grant. There are also grants that are available that an individual can apply for in their own name as opposed the business’ name. This individual wouldn’t be applying for the grant on behalf of a specific organization or business. Although the Small Business Association (SBA) can provide assistance for some small businesses to obtain a small business grant, they don’t, as an agency, provide grants that are intended to expand an existing business venture or start a new business venture. Most of the SBA’s programs are intended to help smaller businesses technical, management, or financial problems and they can guide an entrepreneur to the appropriate program.
There can be many different reasons for obtaining a small business grant. These reasons might include purchasing inventory, marketing, help with the business’ debt, needed capital, overhead, or help in purchasing property for business purposes. The size of these grants can range from a few thousand dollars to as much as millions of dollars. There are many sources that can help a business apply for small business grant. Usually, the first thing that needs to be done is to develop a grant proposal, when a business is pursuing a grant. In order to guide the applicant every step of the way and to take the mystery out of this process there are grant writing workshops available. All entrepreneurs who want to apply for a small business grant needs to be familiar with the components of grant proposals. Usually, there are eight basic components that make up a grant proposal. These components include the budget, future funding plans, evaluation, design, methods, a problem statement or assessment, the introduction and the summary.
Gathering letters of community support in addition to a well thought out proposal will help with receiving approval for the grant. The objectives of the granting agency and the applicant should be similar when choosing which of the many available grants would be the best for a certain entrepreneur. Providing the granting agency with the articles of incorporation, bylaws, any deadline that might apply, and tax exempt certification are other important concerns that the applicant need to consider. These things should all be considered prior to applying for a small business grant.
Most applicants should have a plan for providing funds once the money from then grant has all been used. For example, the granting agency will want to know how the building will be maintained once the grant has expired, if the funds from the grant are to be used for a building project. A budget that is well planned is also required when applying for a grant and it might make the case for the potential future of the small business.