How to Get Government Grants for Small Business

If you are an entrepreneur with limited access to funds and capital, then small business grants from the government is something that would interest you or that it already has in the past.  The things that you read on the papers or the internet make getting government grants for small business sound too easy. The typical process that you would learn about is first, find a government small business grant, apply for it and it will be granted to help you grow your small business.  

Most grants are available through the state as a program they are running for small business.  Other groups are also known to provide grants to small businesses.  Most departments in the U.S. government do not provide grants. A lot of the programs that provide grants often award those in the fields of education or medicine.  The criteria for eligibility for such grants are very specific indeed.

So the process of finding a program that provides grant for small businesses and gathering the requirements needed is very time consuming.  Sometimes, the requirements are very difficult to produce.  There are many criteria to be eligible and it is required that you meet if not all, most of them.  Basis of eligibility can vary from the location and years of your business, your race or sex, to purpose of funding.  Before venturing into seeking a grant for small business, consider the following:

• Make sure that you have the resources and time to search for grants and apply to those grants.

• Consider going to a consultant to learn about the process or maybe you can learn it by yourself.

• Does your business really need the funding now or can it wait?

• Can your business afford to have marketing and selling time taken away from it?

You may go to CFDA or Catalog of Federal Domestic Assistance for a list of government agencies that provide grants for small businesses. The grants they provide are geared towards the development of rural businesses and minority businesses.  There are other programs to assist small businesses available such as grants for training and surplus equipment.

Once you find a grant program for your small business, be ready for a long processing and approval procedures.  To help you, ensure that:

• All information you provide in the application form are accurate and complete.  Most of the time, incomplete requirements or information are the causes of delay or disapproval of a grant.

• Make your business plan stand out from the rest.  Submit a detailed and justified business plan to your grant officer to let them know you have an in-depth knowledge of your business.  Demonstrate that by granting your business with additional funding, it will also benefit the government agency.

• Taking along a consultant or an accountant sometimes help your credibility in the process. It shows how committed and serious you are about the business.

• You are always in touch with your grant officer but not in an intrusive way.  Always act professionally so that they will not get tired of you.

Looking and applying for a small business grant is not as easy as it sounds.  It is not for the impatient kind nor is it for the faint-hearted. If you really need additional capital or funding, consider other alternatives first like personal credit lines, loans from banks, and help from family and friends.  Weigh all the pros and cons of each alternative and see which one will best suit your business.