When a small business is awarded a grant, the money typically does not have to be paid back. Grants awarded for new small businesses can vary from state to state, but some grants are given out to new businesses regardless of location. There are grants that are available only to certain types of business, such as retail, fashion and nonprofit. Small businesses that want to qualify for grants must meet the specific criteria specified in the grant application.
Business Plan
When applying for grants, a new business owner will need to develop a business plan. The plan will let donors know their money is not going to waste, but into a good company. Also, a business plan allows donors to know if the business is nonprofit or profit, which can make a big difference when applying for grants. If the small business owner does not know write a business plan or grant proposal, he should consider hiring a professional to help him do so. Presentation is everything.
Small Business Administration
The Small Business Administration provides grants for businesses that provide small business management, technical or financial assistance. In addition, the SBA assists new small businesses to find grants to help with start-up costs. A new small business owner should contact his local SBA office to receive assistance finding available grants that are not listed online.
Corporate Grants
Large corporations sometimes offer grants to new small businesses. The grants often are awarded by companies that feel they have something to gain from the recipient business. Small businesses that accept grants from corporations should be aware that the corporation could possibly want a stake of some type in the company in the event the small business becomes successful.
Minority Grants
Some grants for small businesses are for minority business owners only. One such grant for existing businesses is the Women's Business Grant. Grants for new businesses range from $100 to $5,000. Any new existing business can apply for this grant, regardless of what type of business it is.
Professional Grants
Professional grants are available to new small businesses owners. The professional grants are typically made by organizations or groups promoting a cause. For instance, a business geared toward helping disabled children or individuals may be eligible for a grant from a professional organization that donates to those with a disability. To find a list of these charitable grants, you should contact organizations that have the same interest as your business would have. You will have to go through a grant application process.
