People who are struggling to make ends meet can apply for government grants and loans. While these taxpayer-funded programs are not technically “free money,” they do connect individuals and families with resources to assist in paying for things like utilities, groceries, college tuition, and even a down payment on a home. Here’s all you need to know about government grants and how to get one:
What Is a Government Grant?
A government grant is a monetary award made by a federal, state, or local government authority to support a worthwhile project. It is, in essence, a transfer payment. Technical support and other financial help, such as a loan or loan guarantee, an interest rate subsidy, direct appropriation, or revenue sharing, are not considered grants. The recipient is not expected to repay the money, but rather to use the grant funds for the specified objective, which is usually to benefit a broader good.
There may also be revenue-sharing arrangements with the government in some situations, such as when a discovery leads to a profit-generating patent.
Every year, 26 federal departments administer over 1,000 grant programs to support the arts, sciences, and educational institutions. Government grants assist in funding ideas and projects that provide public benefits while also promoting the economy. An economics curriculum, for example, could be developed to improve empirical and theoretical economic analysis, as well as the methodologies for doing rigorous study on economic activity.
Grants may also be used to support vital recovery efforts, agricultural projects, and innovative research in a variety of disciplines.
How To Get a Government Grant
Government grants aren’t just handed out; they have to be applied for. Obtaining a government grant is a very competitive process. The documentation is complicated, and candidates must explain how the money will assist the local community or the general public. Writing a convincing proposal is so difficult that many applicants seek expert assistance. Grant proposals are a specialty of some freelance writers.
Federal grants are authorized and appropriated by legislation enacted by Congress and signed by the president. Grant authority varies by agency. In several of its counseling and training programs, the Small Business Administration (SBA) may award funding to nonprofit groups.
Applying For A Government Grant
It is not easy to obtain a government grant. Although grants are theoretically free money, you must invest time and effort into making your application the best it can be. You want to provide your company with the best opportunity to win a grant and funding.
Obtaining a government grant is similar to obtaining any other type of award:
- Gather the necessary grant application materials: You must devote significant effort to assembling your application papers, which include a business strategy, business records, administrative details, and financial objectives.
- Apply for the appropriate grants. Following that, you must specify what types of grants you are eligible for and carefully examine grant requirements to select a couple that directly pertain to your firm. Before applying, consider meeting with the funding provider.
- Submit your grant. The final thing you should do after writing and submitting your grant proposal, or hiring a grant writer to do it for you, is wait. Unless the grant specifies application tracking or next actions, wait three to six months before following up.
What Are Some Pointers for Obtaining a Government Grant?
It’s one thing to apply for a government grant; how do you get the grant? Here are five grant-writing tips:
#1. Make a professional resume:
Hiring an expert to help your CV stand out and look more professional may be beneficial. This improved CV should include responses to any questions the funding organization may have when reviewing your application. It should also mention how long you’ve been in business, how much money you make each month, and how you intend to use the funds. A business plan and a professional photograph are also required.
#2. Collaborate with a significant local organization
Consider collaborating with a well-known local organization. “Begin by researching large corporations or brands headquartered in your area that have a corporate social responsibility strategy,” Ty Stewart, CEO of Simple Life Insure, recommended. “Grant programs and partnerships are frequently supported by businesses to help develop the communities where they are located, particularly around regional or global headquarters.” They have a vested interest in ensuring the viability of those communities, including assisting related small enterprises.”
#3. Contact the economic development council in your city or county
There may be an economic development council in your area. “This branch of government often aggregates a continual list of grant opportunities,” Stewart went on to say. “Having a working relationship with economic development council staff or members can help you stay in the loop on these grants as well as elevate your business’ visibility in your community, which will help come application time.”
#4. Make use of your digital assets
Ensure the strength of your digital assets, including social media profiles. “Businesses should also focus on digital assets like social media handles and websites, along with other physical assets,” Ward said. “The digital assets act as the face of the company and should give a good first impression when people search for it.”
#5. Consider thinking outside the box in order to differentiate yourself from the competition.
“It is important for small businesses to stand out from the rest of the other grant applications,” he said. “In order to impress the people in charge, business owners should think creatively and implement out-of-the-box ideas.” A lighthearted movie describing why your business strategy is worthwhile to invest [in] can do the trick.”
Where Can You Find Small Business Government Grants?
For many small enterprises, government grants are an attractive source of finance. The following resources can help you find government grants:
- SBA.gov: SBA.gov is a great site to look for grants. The government website is chock-full of grant and financing opportunities. The Small Business Administration (SBA) also provides SBA loans, which differ from traditional loans in important respects.
- Grants.gov: Grants.gov is the ultimate federal grant database. Grants can be found by funding type, eligibility, category (arts, business & commerce, health), and agency. Be cautious: Sorting through the database will take some time. The possible return, on the other hand, is locating a grant opportunity that is ideal for your organization.
- The United States Economic Development Administration (EDA) offers subsidies to economically challenged localities in order to foster new job creation and commercial growth.
- Small firm Development Centers: The Small Business Administration’s Small Business Development Centers provide local resources to assist your firm.
- Challenge.gov is a website that organizes challenges and award competitions to fund groups that have unique solutions to pressing concerns.
These are not the only government funding opportunities. Businesses should look for grants at all levels of government, including federal, state, and local.
What are some examples of government grants to look into?
Here are some well-known government grants that your company may be qualified for.
#1. Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs
The SBIR and STTR programs are among the top federal awards available to for-profit small enterprises that specialize in scientific and technology innovation. They are highly competitive and encourage small enterprises to perform R&D in the expectation of someday commercializing their product. These programs, in addition to money, provide possibilities for small enterprises to collaborate with charitable groups.
To be eligible for the SBIR and STTR programs, you must run a small firm in the United States that is more than 50% owned by Americans and employs fewer than 500 people.
These programs are divided into three stages:
- Phase I: A $50,000 to $250,000 award for six months (SBIR) or one year (STTR). The goal is to assess technical value, commercial potential, and viability.
- Phase II: The average award is $750,000 for two years (SBIR and STTR). The goal is to continue Phase I research and development initiatives.
- SBIR and STTR programs do not give funding for Phase III. The goal is to commercialize the product.
#2. State Trade Expansion Program (STEP) grant
Small firms seeking state grant funding might investigate STEP financing, an SBA small business grant. STEP prizes are granted to state entities in order to enhance exports and sales in their respective states.
Small firms can locate STEP grantees in their state to have access to STEP resources and broaden their worldwide client reach. STEP financial assistance assists small enterprises in learning how to export, participating in overseas trade missions, and designing and developing items for foreign buyers.
#3. Environmental Protection Agency (EPA) grants
The EPA provides billions of dollars in grants and other assistance agreements to a wide range of businesses, from tiny NGOs to huge state governments. Its primary goal is to promote the advancement of human health and the environment. The EPA’s home website provides useful information such as available training and funding opportunities, application processes, and rules and policies.
#4. U.S. Department of Agriculture (USDA) Rural Business Development grants
If you own a small firm (fewer than 50 employees and less than $1 million in gross revenue) in a rural location (population under 50,000), you may be a good candidate for a USDA Rural firm Development grant.
This grant is given to public entities such as towns, communities, state agencies, and nonprofits in order to help small and emerging businesses in rural communities with land acquisition or development, pollution control and abatement, rural transportation improvement, and economic development.
Other rural grants, loans, and loan guarantees are also available from the USDA. You can filter your search based on your location. visit learn more, go visit the Rural Business Development Grants webpage.
#5. U.S. Department of Education grants
Small firms in the education industry can apply for funds from the US Department of Education. There are dozens of grants available for specialized purposes such as scientific research, state education, and special education. Each grant includes program details such as who is eligible to apply, total program financing, award ceilings, and the number of awards.
#6. Service-Disabled Veteran-Owned Small Business (SDVO SBC) program
The SBA’s Service-Disabled Veteran-Owned Small Business Program provides government funds to service-disabled veteran small business owners.
You must meet specific ownership and operational standards to be eligible for the program. For instance, one or more service-disabled veterans must make day-to-day and long-term decisions at your small business, and they must own and control it at least 51 percent of the time. You will be able to compete for set-aside contracts as a member of the SDVO SBC Program.
Receiving A Government Grant
There are no hidden costs or fees with government grants: they are outright gifts, not loans. However, because government grants are paid for with tax funds, they involve severe compliance and reporting requirements to ensure that the money is spent wisely.
After receiving a check, the recipient must submit thorough records detailing how the funds were spent. If the funds are received in installments, these reports must be maintained throughout the award duration. Any successes or failures must also be documented and presented to the sponsoring agency by certain timeframes.
Receiving a government grant is a distinguished event, indicating that an individual or nonprofit organization has made a large, positive impact on a community, field of study, or industry sector. It frequently puts a project on the donor radar, attracting other sources of support, both nonprofit and for-profit. It may also give the grantee some clout with or attention from the supporting agency.
Government grants have no strings attached, including the application process; therefore, if you are requested to pay a fee to apply for or learn more about a grant, it is likely a fraud.
A Government Grant Example
The performing arts are a prominent grant category for many government bodies. For example, in early 2019, the United States Embassy in Moscow requested grant proposals to find and choose American artists and performers to come to Russia for short-term programs in music, dance, theatre, film and television acting, and culinary arts.
Nonprofit organizations may be eligible to receive up to $650,000 to produce performances in Russia. The goals of all enterprises, as well as public and private universities that might receive grants, were strengthening “people-to-people ties” between the United States and Russia, as well as “showcasing American values by presenting the full range of American creativity and innovation.”
In Conclusion,
While there are ways to obtain government financial help, there are also grant scammers who promise to provide you free money from the government in order to steal from you. Don’t be duped. The government rarely approaches people with offers of free money, particularly for launching a new business or addressing personal expenses, and when it does, it never does so through social media. State and federal programs aim to assist needy individuals and families back on their feet and on their journey to financial independence.
- How To Apply For A Small Business Grant
- Where to Get Free Money to Start a Small Business
- Grant Management Software: Top 10 Options For Nonprofits
- Federal Grants For Small Business
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