Could a Small Business Grant Work for You?

For many entrepreneurs, the concept of grants for small businesses may sound like a pipe dream. Free money? For my business? You’ve got to be kidding!

Yes, there are grants – “free money” – for small businesses. In fact, there are a lot of them, covering an almost unimaginable range of topics. The catch is grants are usually available for very specific purposes or have other strings attached that can make a grant difficult or impossible to obtain. Grants are usually very targeted and if your business is not in that bullseye, you’re wasting your time. Grants are also very competitive and require considerable paperwork to even have a chance.

Worth a Look

These and other reasons are why grants involve a lot of up-front investment in terms of time and even money. You’ll need to do a lot of research to even find possible grants, then more research on the granting agencies to verify that your business is a good fit and what they look for in an application. Competition is fierce, and you do all this with no assurance you’ll be rewarded for your work.

On top of all that, even if you win a grant, the money you receive will be limited in what you can use it for. There are strings attached – you probably can’t use a grant for “going green” to pay for new computers.

Despite all of this, it’s an area worth considering. Business grants offer essentially free money, so they are a great way to help establish and grow your operation without needing to make repayments. If you find a grant that covers an area you want or need to pursue, they can provide a jump start to enter or grow your business in that area. There are even startup grants that can help during an especially tought time.

Learn the Territory

A good idea is to gain a solid overview of small business grants. You can avoid this by hiring a grant consultant – which is definitely something to consider – but most small business owners need a DIY approach precisely because they need money in the first place.

Fortunately, the internet offers a lot of good information. A good one we’ve found is this article on Small Business Grants: Your Guide to Finding Funding available at Moneygeek.com. It features a great overview and sources to learn more.

Regardless of your path, small business grants are a legitimate option for many entrepreneurs. When you can, budget some time to learn more.