Understanding Business Grants

Answer 1

Business grants are essentially free money, as they do not have to be paid back. This makes grants a better option than loans, but the qualifications for business grants are much more strict than loan requirements. Business grants are typically awarded by the government, but there are some organizations that off grants to small businesses. Often, these organizations are Fortune 500 companies, and are given to small businesses in their area as a show of good faith, and to keep the local economy in good condition. Grants can range in size, but are typically under $10,000. In most cases, recipients of grant money are small businesses. If the business is non-profit, or charitable, then it is more likely that they will receive grant money. There are methods in which other large and small businesses can obtain grant money, and often entire projects can be funded by grants if approached correctly.

If a project is being undertaken by a small business that can help larger businesses, then that small business can approach the larger business, and pitch their idea. If the larger company sees value in their project, then they may choose to fund a portion of it, or all of it. This way of obtaining grant money is the most often pursued method, and is often in the largest amounts. While these grants are numerous and the rewards are large, they can be terminated at anytime by the investor, should they feel that the project isn’t going well. This will require a lot of follow up by the small business, and the investor will often require a grant writing and reports on how the project is going.

Grant writing is the most important step in obtaining grant money. When grant writing, the borrower will outline why they should receive the grant, what the grant will be used for, and how the investor can be assured that their money is being put to good use. Businesses often hire professional writers for this task, as it will determine whether or not they receive the grant. Business grants are available to almost all small businesses, and to all charitable organizations. There are also alternative routes in which larger businesses can pursue grant money from organizations outside of the government.