Eric

· 05 Nov 2021

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Small business startup grant

         People have excellent business ideas but lack financial aid to start their business ideas.

Small businesses face a tough time to start off, let alone the sustainability of the company.

However, much support is currently available either from the state or private

sector.  Majorly, the license may be in the form of a grant, a loan, or a leg up. But what does a

grant support encompass?

What small business startup grants entail

          A small business grant is a financial aid given by the government or an organization

aiming to assist sole traders and companies in succeeding in establishing and sustaining the

business ventures. Contrary to awarded loans, grants have no obligation to pay back. Also,

grants require no registration fees or collateral support in acquiring them.

        However, grant monetary have rules that direct on how to spend it. For example, if you

apply for a license to upgrade mechanization in your organization but use the finance to pay

your employees, you be liable to pay it back or be guilty of fraud.

Who is eligible for a Startup Small Business Grant?

        Typically, grants aimed to pay off debts or cater to operational expenditure are

unavailable.  Nonetheless, different business types and owners stand better chances to be

awarded grants. They include but are not limited to:

•    Innovators

•    Green businesses

•    Rural businesses

•    Women and minority-owned businesses

•    Nonprofit organization

      Most importantly, project-oriented to technology, medical research, or education stand

a higher percentage likelihood of grant financial support.

How do you apply for a Small Startup Business Grant?

          The startup grant application and successiveness is not a magic bullet, neither a

straightforward process. Much effort is required to stand chances of successive

application. They range from the understanding of the application specifications, the

timelines, and any other relevant obligation.

         Further, the application may demand a work or business proposal plus the

organization's financial data. Essentially, seek a buy-in of experts such as accountants and

skilled grant writers who will draft a grant proposal.  Nonetheless, success and reward are

forthcoming for business owners who dedicate time and resources to develop an inclusive

grant proposal despite the adopted application roadmap.

Sources of a small business startup grant

i.    Government grants

        The government, in its role, to create sources of income for its citizens, set aside money

to support small businesses. The available funds may be obtained directly from the central

government or be distributed to the local government to enhance availability at the local

level. Grants may divide into different stimuli such as innovation grants, post-economic

crises grants.

ii.    Corporate grants

          Corporate grants are based on the commitment to company social

responsibility.  Further, the corporate funding may be used to fuel a corporate goal, such as

intensive research on the specific area of interest.

iii.    Nonprofit grants

       Private organizations also provide a considerable amount of grants, especially

special-interest groups. Essentially, such a private organization establishes a defined

purpose and only awards grants to applicants oriented to the specified purpose. For

instance, community-based organizations will only award grants to community-based

projects.

        In conclusion, grants play an essential role in the growth and sustainability of the small

business. Government grants, corporate grants, and nonprofit grants assist in achieving the

business prosperity of minor business persons.

https://www.thebalancesmb.com/how-to-get-a-startup-small-business-grant-4685991