USA Small Business Grants – Eligibility and Application Procedures

The classification for the small scale business is done based on its capital, profit, manpower and productivity. Few of the business are commenced with self finance and mostly it is done with the funds borrowed. The government in many countries has started funding by wayto small scale business mainly to prevent the huge down payment as interest to the banks. The grant given for the business assists the owners or the proprietors to get the principle amount and there is no worry for them to repay the amount in future.

It has given to the small scale business also helps in developing the growth of the small companies as the source from where the financial support received is reliable and stable. Generally, for business is obtained from the local authorities, state government of the national government. Few industrial organizations and the corporations that are established well also give these kinds of grants, but are not desirable all the time.

The funding by way to small scale business is limited. Particular areas are targeted for this kind of funding. Principal amount is the main area where the capital investment is very less or not available. The small scale business grants are also provided for other business related works like husbandry, fishery and farming. It is also targeted towards manpower hiring, purchase of new equipments or machinery. If there is necessity of a building separately, then the small business grant will be intended for purchase of land and construction of the building. In the case of business that is established, the small business grants are provided for development and research and also for technology improvement. The small business grants are also given for enhancement of international trading to the foreign exports.

The business plan should be drafted well and to be submitted to get the small business grant. Generally, the loan contributor for these small business grants is the SBA called as the Small Business Administration. It is also important for the borrower to clearly mention the places where the grant money will be utilized as the expectation is that around 50% to 85% of the grant money should be invested for the business purpose. The grant is given based on this guarantee of investment in business. Once the grant is approved, analysis is done on the credit and concluding report has to be submitted to the lender. Then the amount will be disbursed directly to the owner of the business by the lender.

Small Business Grant Source:

Learn the application procedures, various funding sources for specific types of businesses and eligibility criteria for small business grants.

Small Business Grants – Are You Eligible?

Government small business grants are a hot topic of discussion among small businessmen with limited access to funds and capital. The federal government does not provide grants for developing or expanding a small business; but the state governments does.

Small business grants are handed out to entrepreneurs by their home state governments. It is not very difficult to get business government grants, though it is time-consuming. The federal government on the other hand, does provide some low-interest loans to encourage and assist upcoming entrepreneurs. The criteria to get a small business grants usually depends on location, race, sex, sales revenue, total number of years in business and the purpose for which it has to be funded. The requirements for grant eligibility are specific and one must be prepared thoroughly for it with a clear-cut plan.

The initial steps involved in seeking business government grant are:

1. You have to spend a good amount of time and resources to search for small business grants program in your state. Thanks to computer and internet it has become less tedious now.
2. After you have searched a grant program matching your business plan, hire a consultant to apply for the plan. The consultant will make your grant application a presentable one before the state authority. Alternately you can spend some time learning the grant application process and apply. Remember you have overcome bureaucratic bottlenecks.
3. Define for yourself the time limit-do you want it now or wait for a year.

To find small business grants, one can look into the Catalog of Federal Domestic Assistance (CDFA). This CDFA lists thousands of grants from all government agencies. Many of these business grants are targeted at rural business improvement, minority business development or export-oriented businesses. After finding a Small Business Grants suiting your business needs be prepared to undergo lengthy and time consuming process of approval. You must be ready or tough competition as the grants’ funds are limited.

There are some tips to receive a grant.

1. Complete and accurate information of your business outfit is necessary. If your application contains incomplete details or inaccurate information, it may not make through the review process or may end in an ordinate delay.

2. It will be advisable to interact with your grant officer and come to know their concerns, budget limits, and constraints with your grant.

3. A well prepared business plan and demonstrating your strong business acumen will make your approach a discernible one. A smarter strategy would be to show the benefits it will make to US government agencies.

4. Bringing in an outside expert or consultant would add credibility to your application. Also it would create an impression of professionalism.

5. Keep tracking your application process. It will be helpful to be in contact with a concerned grants officer in a non-intrusive manner to tilt the balance in your favor.

Small Business Grants Applications

The application for the grant can be applied by a person either as an individual or as a part of an organization. The applicant can also apply for more than one grant at one time. Some of the tips are given below that will help the applicant who wish to apply for the business grant.

Firstly, the applicant should decide on the type of grant that is required. Some of the applicants will not get the grants they have applied. This is mainly because they do not know their exact requirement. Under these circumstances, they can contact their business administration locally or the business development center. Thus it is necessary to ensure that he meet all the requirement of the grant before the application for the same is submitted. Some of the grants are generally offered only for the individuals and some are only for the organizations.

When the process to apply for the business grant is commenced, the applicant should first make his business plan ready as many of the grant applications insist for the business plan. The business plan should contain the details of the business and also the goal. The details regarding the finance should be precise, clear and should be simple to understand. The business plan can be tailored to the grant by just making references to mission statement of the grant organization.

The most difficult part in preparing the grant application is grant proposal writing. The applicant can take a seminar locally or can choose the community college or even go in for the online course in the grant writing. Alternatively, the applicant can also locate for a mentor like professor, curator or a teacher with good experience in grant writing who will be of much use in the preparation of grant application.

When the proposal for the application is written, the applicant should bear in mind the questions that may arise by the committee while going through the application. As far as possible, the answers for these expected questions to be answered in the grant proposal. Complete attention need to be given in meeting the requirements of the grant committee by answering all the questions as a part of the grant application.

The proposal for the grant should be short and clear. Whatever questions that may be raised by the grant committee should be answered properly in the proposal. The proposal for the grant should be realistic or otherwise it may be rejected.

The title page and an abstract should be included in the proposal. The introduction and a review for the proposal should be available in the grant proposal. The project for which the grant is required should be described properly and the requirement of the staff for the project should be indicated.

Small Business Grant Source:

Learn the application procedures, various funding sources for specific types of businesses and eligibility criteria for small business grants.