If you’re a small business owner, you know the world of grants can be complex. Though each grant is different, a basic understanding can be a huge help as you begin searching and applying for grants for your business.
Let’s start by defining the word “grant.” A grant is a sum of money given by a government or other organization for a particular purpose. In order to receive a grant, you must create a grant proposal. As you might assume, a grant proposal is a document that provides information to the giver of a grant about the applicant. Grant applications typically include a company background and a projected budget or use of funds. They do not typically include an application fee.
Types of Grants
Before you begin searching for a grant, it could be helpful for you to know where to look and what common types of grants exist. As we stated previously, the government and other organizations can provide business grants. Some of these other organizations can include large retail companies that offer grants to small businesses. It’s worth noting that schools do not provide business grants. Government grants are worth various amounts of money and do not need to be repaid. Here are a few examples of grants issued by the government after the pandemic:
- During the pandemic, the federal government offered grants to small businesses to help with COVID-19 relief.
- The Small Business Association launched the Restaurant Revitalization Fund, a restaurant funding program, to help local restaurants negatively impacted by the pandemic.
- The American Rescue Plan Act of 2021 included $24 billion of stabilization grants for daycare and early childhood education centers.
As you can see, even if you provide services rather than tangible goods, you are still eligible for grants.
Receiving a Grant
Once you have determined the type of grant that you want to apply for, you will begin the grant writing process. If the entity providing the grant selects your company, you will receive the money dedicated to the purpose or project outlined in your proposal. Grants are generally considered taxable income and need to be documented as such. Make sure you’re also staying within the grant terms. Once the grant has been received, the business owner must be diligent about reporting progress and compliance with grant regulations.
Finding and obtaining the right grant for you and your company doesn’t have to feel so complex. If you’re interested in getting grants for your business, we might be able to help you. Learn more about our services here.