How to Get a Government Grant - and Avoid Getting Ripped Off
The federal stimulus package created grants galore for companies, small businesses and local governments. The money's out there, but there's two catches for small businesses: finding the grants and applying the grants. Grants are necessary in this economy where lenders are stingier than dog with a t-bone steak. Small business owners must remember that there are many essentials to secure grants.
It's also important to note that there are many companies online that will offer to find and apply for grants for you. While some of these may be reputable, many will simply charge you for getting paperwork that you could fill out yourself, and most are no more knowledgeable about the grant proposal process than you are.
Finding grants
There are two primary government venues for small business grants. The government created www.business.gov, which contains a comprehensive look at business grants and loans. Here you'll find the rules and opportunities to help you apply for a grant. The site also includes information on how to raise capital for a small business. Additionally, check out the Catalog of Federal Domestic Assistance (CFDA). The CFDA is a free listing of federal grants, including many for small businesses. Use these resources to find the appropriate grants to fit the business' mission.
Applying for grants
o Yes, there's free money available, for a given value of 'free,' anyway. When and if the right grant has been found, applicants must follow many key rules when applying for grants.
Use accurate information
o False or mistaken information often leads to disqualification. Grant funders receive hundreds and thousands of applications. They look for even the smallest details to disqualify someone. They're not interested in having to do the work for the grant applicant themselves.
Think about the mission
o A good grant application understands the mission of the funder must be more important than the applicant's mission. Grant applications need to explain how the applicant can help the grant funder achieve their goals.
Be clear about the business' intentions
o An application should clearly express the intent and purpose of the business applying for the grant. In short, what they plan to do with the money and why they are qualified. This may seem basic, but a clearly written statement of intent is essential.
State how the business will account for the funds
o Government agencies are often under great pressure to account for the money they grant. Therefore, a grant application needs to explain an accountability method: how the business will keep track of the money and verify it is used as intended. Government agencies get a lot of flak for losing money. The government at least wants to see on an application why they should believe the money will be accounted for.
Create a dynamic proposal
o Grant applications need to stand out among the myriads of other applications. Grant applications are often dozens and sometimes hundreds of pages. Break up the lengthy text blocks with statistics in boxes, charts and graphs. The old adage, don't tell, show, is never more true than grant applications. Make it visual and easier to skim. The application will go further that way.
Write quality material that can be recycled
o There are so many grants to apply for, so applicants should expect to apply for and get rejected from several.
While the federal government allocated so much money for grants, the government often encounters more applicants than funding. To avoid being overwhelmed applying for dozens of grants, recycle material. Write a comprehensive mission statement and use it for different grants. Tinkering and tweaking always beat re-writing, especially if the applications are similar.
Grants are more than just an illusion. They do exist and with these tips, the federal government can become the Santa Claus for a small business.
