4 Tips for Getting a Business Grant

Marissa Scott
 — Business
When you run a business, you often have to spend money to make money. Business growth and expansion can be costly, but when executed correctly can have a positive impact on your bottom line. But how, exactly, is a business supposed to raise the capital needed to scale? Many business owners turn to traditional financing options such as business loans and lines of credit, while others may consider personal loans or business credit cards. However, one funding option that is often overlooked is a business grant. Many business owners dismiss grants because they find them intimidating, or because they don’t know where to find them or how to apply. The good news is that a wealth of grant funding is out there, offered by private organizations as well as federal, state, and local governments. And unlike business loans, grants do not typically need to be repaid. So, even though they require a bit of time and work upfront, grants are a valuable resource for business owners.

Here are some tips to help your business secure grant funding:
 

1.    Research to Find the Right Grants for Your Business

A search engine can be a great place to start researching grant opportunities. Search specifically for business grants located in your area and industry. If there are specific traits that define your business, try searching on those as well. Grants are often available for startups, veteran-owned, women-owned, or minority-owned businesses. Once you narrow down the list of opportunities that make the most sense for your business, you should prioritize them based on how well they fit your business, how likely your business is to qualify, the length and requirements of the application process, the amount of the grant, and the deadline. Information on grants available in MA can be found at https://www.smallbusinessma.org/grants and additional grant opportunities can be researched using the resources below:

2. Understand the Grant’s Objectives

Understanding a grant’s objective is critical when applying for a business grant. Granting organizations have specific goals they want to achieve, and they wish to fund businesses and projects that align with their mission. If the goals of your business don’t match up with the grant’s objectives, your application is unlikely to be successful. Be sure to thoroughly review the grant opportunity and only apply if you can demonstrate how your business will directly contribute to the grant’s goals.

3. Ensure You Can Satisfy the Application Requirements

Every grant is different, and you'll need to be sure you can satisfy its application requirements before you apply. Thoroughly review the grant guidelines and pay close attention to eligibility criteria, deadlines, and required documentation. Many grants have specifications around the types of businesses that are eligible, or their location, industry, or size. If your business meets the eligibility criteria for the grant, you can start gathering any necessary documentation. At a minimum, you’ll likely need to provide your business financial statements when applying for a grant, so the granting organization can understand the health and stability of your business.  

4. Write a Strong Business Plan

A well-structured business plan is essential to a successful grant application. Ensure your business plan is up-to-date and tailored to the grant’s objectives. The Executive Summary portion of your plan should clearly state how your business aligns with the grant’s goals, and you should also emphasize your company’s relevance to the grant in your Company Description. In the Financial section of your business plan, you should outline how your business will use the grant funds. Business grants are typically awarded through a rigorous application and review process, and decisionmakers do their due diligence to ensure funds are awarded to applicants who will put the money to good use.
 

Applying for business grants can seem intimidating at first, but the more practice you get, the easier the process will become. Try to carve out some dedicated time for grant research and applications, or consider hiring someone to help with the process. Grants can be a valuable funding resource for your business, so don't be afraid to toss your hat in the ring - you might be surprised by how many grant opportunities your business may qualify for. 

If you’re a business owner in Massachusetts or Rhode Island who is looking for cash management, business financing, or business banking solutions, don’t hesitate to contact our dedicated Business Banking Team today.