Free Internet-Based Training on Business Grants
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INTRODUCTION
What is Business-Grants.com? This web site is a free educational platform for small business owners and entrepreneurs who want to learn about business grants. Created by the Global Institute of Small and Minority Business Grants, our goal is to help you find and obtain grant funding for your business. We do that by offering you free online training. What Drives Us? The American economy is at its worst in years, and this affects millions of families and businesses. Banks and financial institutions, who were traditionally designed to assist needy individuals, are helping less and less. However, business grant funding is alive and well. We want to make sure that entrepreneurs are fully aware on how to take advantage of these opportunities. How Does This Site Work? This site operates almost like a slide show presentation. Below you will notice the table of contents that outlines the different educational lessons. We recommend that you review each page in numerical order. If needed, you can also download the free e-book to have the entire training on your desktop. Unfortunately, we do not offer customer support or a live person to facilitate the training. This is a do-it-yourself training platform.
WHAT ARE BUSINESS GRANTS? A grant is a monetary aid designed to financially assist the recipient. Grants can be given for a variety of reasons, such as to pay for college, to assist in the launch of a non-profit organization, to conduct research, or even to rebuild a torn
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down community. However, business grants are specifically designed to help start a new business or expand an existing one. The amount of the funding can vary from $500 to as much as $5 million. Typically, the funding is given to further the growth and development of small businesses - thus the term "Small Business Grants." However, many grant opportunities were created to assist disadvantaged minority businesses - thus the term "Minority Business Grants." Such grant funding essentially provide the money (fully or partially) that an applying entrepreneur need not consider as a part of his or her own risk. In other words, its completely risk free. The amount granted does not have to be repaid. This is much different from a business loan, which does require repayment with interest. Depending on the stipulations however, some grants can only be used in certain scenarios. For example, some opportunities require that the project or business that you are requesting funds for cannot already be in existence. Others may require that the applicant must have 5-10 years of business experience. The rules and regulations really just depend on the corporation, organization, or government agency that is providing the funds. In addition, although you are not required to pay this money back, there are tasks that the applicant is required to perform. Many times these tasks can be quite tedious. For instance, the grant recipient is almost always required to keep very detailed records as to how the funds are allocated, as well as to prove that the finances were used within the allotted timeframe laid down by the distributors of the grant at the time it is awarded. Business grants can prove to be very useful for a small business or a minority business operation, but such funding is not easy to obtain. The process can often take months or even up to a year, with tons of paperwork and long applications.
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However, those who are in it for the long haul will reap huge rewards from the financial assistance that grants can bring.
WHY BUSINESS GRANTS EXIST Starting or expanding a company, whether it is at an alternate physical location or in your own home, can be very difficult to do. It can easily require money that most individuals do not have upfront. Therefore, small business grants were created by the federal and state governments to help entrepreneurs. Why would the government care about helping people fund their businesses? Well, because the government is interested in your tax dollars. Every business has to pay taxes, and the government understands that by helping you get on your feet - it will eventually mean more tax revenue for them. In addition, small businesses drive the economy. The more successful your business becomes the more taxes you will pay, and the more people you will employ - who will also be required to pay taxes. If your company is successful, it is also very likely that you will be keeping other companies in business.
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In many cases, the government will also promote SBA loans from the Small Business Administration - a federal government agency. Although this type of funding is required to be repaid, it is another initiative designed to help the small business community grow. Often, the repayment for these types of loans is at a lower-than-usual interest rate. Business grants are also given by corporations for community relations purposes. Many major corporations like General Electric, Ford, Wal-Mart and others have foundations that they use to give away money away to charities, relief efforts, and grant recipients. This helps the company to have a good image in the public eye, which supposedly encourages customers to be more loyal. Most grants given away by major corporations are in the form of scholarships for college. However, several do give actual business grants to low-income families and individuals who want to become business owners.
SMALL BUSINESS GRANTS VS. MINORITY BUSINESS GRANTS There are several types of business grants available - specifically for small business owners, minority entrepreneurs, women entrepreneurs, and even disabled veterans. Essentially, the grant opportunities are one in the same. The difference is that the grantor has specified a certain group that they want the funds to be allocated to. Generally, the motivation is to assist a group of people who are disadvantaged. For instance, women and minorities have long been mistreated and undervalued when it comes to equal opportunity. So, a women-owned organization who has grant money to give away may decide to only help women and girls. The same may occur for a minority organization that wants to help only minorities, and so on.
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By creating women business grants or minority business grants, these targeted groups can know that the available funding is specifically for them - encouraging them to better take advantage of the opportunities. The motivation behind small business grants may be slightly different though. These may have the sole purpose of restoring a tarnished economy. Usually, such grants are given by federal and local governments with the long-term goal of rebuilding a large community of other small businesses. Such grants are designed to intentionally leave out large corporations who because of their size would be better advantaged to win the funding to use for their own benefits. The general reasoning behind this is that 1) large corporations shouldn't need this type of assistance; and 2) twenty small businesses are better for the economy than one large corporation. In conclusion, both small business grants and minority business grants are targeted to specific groups of people, but with two purposes. One needs a boost because of previous centuries of unequal treatment, and the other needs a boost because the economy literally thrives on them. Of course, minority business owners are a part of the small business community - and thus they contribute to the economy too.
HOW TO FIND BUSINESS GRANTS AND LOANS Unfortunately, the first thing to often go when the economy falters is programs, such as those that help finance grant opportunities. On the other hand, oftentimes grants will be awarded to business owners in order to attempt to stimulate the economy during these particular times.
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A simple search of the internet will produce an assortment of grant opportunities. There are various companies and organizations out there who wish to assist small business owners in succeeding in their entrepreneurial start up. However, as cautioned above, do not believe every opportunity you come across. Unfortunately, there are many scammers in the world who would like nothing less than to take the money right out of your hands during a time when you need the finances the most. According the U.S. Department of Health and Human Services, a genuine online resource that serves as “a central storehouse for information on over 1,000 grant programs and provides access to approximately $400 billion in annual awards” is www.grants.gov. Although this site does not exclusively include small business grants, there are valid opportunities available. Women business owners may find the grants that they are seeking finances for through several web sites that are excellent grant resources. There, women entrepreneurs can access various grant opportunities both state by state, as well as by specific diverse group. The funds could either aid in the start up costs of a new business or help a business currently in operation to fund a new program. If you happen to live in the United Kingdom or Ireland, J4B’s web site offers over 4,500 financial programs that include those pertaining specifically to small businesses. The site, updated daily, offers the option to have updates sent to you via email when new grants arise that match your business needs. The web site
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includes helpful information regarding deadlines and funding success, among other topics. In addition to using the internet as a resource for finding a grant, there are also books available that list hundreds and hundreds of grant opportunities. Much of the time these are divided into sections or categories, making it easier to locate the specific grants that may apply to your business. Although these books are obviously widely available for purchase, often times you can find the same or similar book at a public library, enabling you to peruse the various opportunities at no cost to you.
HOW TO APPLY FOR BUSINESS GRANTS If you are a small business owner who is seeking a grant, there are a few things to remember. First, when you find a grant that you are interested in applying for, take the time to do some research on the specific grant, as well as the grantor. A June 2008 article on About.com encourages grant applicants to pay extra attention to application details the first time, you will prevent problems in achieving an approval. Whether this pertains to omitting a necessary detail or going over the maximum word count, an application that is not filled out correctly or thoroughly could cause delays or even result in exclusion from the application being reviewed. It is also helpful if you present a grant proposal or business plan that allows your business to stand out above other businesses who are also seeking grants. A business proposal helps to give the grantor details as to how you plan to operate your business.
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According to an article in Business Source Complete by Louis Cole, it is often imperative that you demonstrate with the grant proposal or business plan how your business plans to “provide jobs and or significantly raise the skills levels of your local employees." If you do not have someone who is proficient in this area, it may prove to be beneficial to hire a professional who knows how to achieve this goal. Allow enough time in the grant seeking process to fill out the necessary paperwork and ensure that you turn the application and supporting documentation in well before the date it is due. It is best to get it in as early as possible, as this demonstrates to the grantors the motivation you have in obtaining the grant. Even if you do not find the fortune of obtaining a small business grant the first time, do not let this be an obstacle. By applying for numerous grant opportunities, you can continuously increase your chances of being approved for one.
DISADVANTAGES OF BUSINESS GRANTS The disadvantages of obtaining small business grants are actually very minimal and to some, non-existent. Despite the risk-free arrangement that most grant programs have, many complain about the long application process and the tedious requirement of keeping detailed records. However, this is an extremely small price to pay when you are getting award with free funding for your business. The reality is that the advantages far outweigh the supposed disadvantages. Below are just a few case studies of how grant funding how helped difference businesses across the country.
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• In 2007, a $1 million award was given to the Pullman Industrial Park in Spokane, Washington. According to Robin Toth, director of business development for Greater Spokane, the area of the industrial park, one of two areas referred to as the “Innovation Partnership Zones,” will “spur the economy and grow jobs and companies for the region." -- Spokesman-Review, October 2007 • Skip Grant, president of GAIM Engineering Inc, was able to secure several grants that subsequently allowed him to buy new equipment and put himself and some employees through training courses. These courses made it possible for them “to become certified as a quality-control manufacturer to the automotive industry." -- Regional Business News, June 2004 • In 2007, the Miami-Dade Chamber of Commerce granted 10 small business $5000 each. This made it possible for business owners, such as Alma Knight, to lessen the strain that has been causes through their own self-financing. Alma’s business offers free or low cost healthcare to members of the community. -Miami Herald, March 2007
BUSINESS GRANT RESOURCES Business.gov - A small business guide to government grants and loans. Discusses SBA loans, venture capital financing, and small business grants. BusinessFinance.com - an online search tool that allows individuals to sift through 4,000 sources of business financing - including loans, capital, and investments.
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BusinessGrantsUSA.com - Offers free CD-ROM with an extensive directory of the latest grants and loans funded by federal and state governments, and private foundations. Also, features business plan resources and grant writer secrets. Ed.gov - An online grants resource by the U.S. Department of Education to facilitate scholarships and grants for students, educators, and businesses involved in education. Entrepreneur.com - Respected resource and search feature for business grants and venture capital. Also, offers news and announcements about the latest funding opportunities. Grants.gov - A unified site sponsored by the U.S. Department of Health and Human Services for interaction between grant applicants and the federal government agencies that manage grant funding. Grants.NIH.gov - A listing of small business research funding opportunities from the National Institutes of Health, Office of Extramural Research. GrantsForWomen.org - Online resource for women and girls looking for grants to start or expand a business. Also, features tips and advice on grants for launching a non-profit organization. Hud.gov/grants - A program from the Dept of Housing and Urban Development whereas they promote opportunities available through local governments and non-profit organizations to make financial assistance and counseling available. SBA.gov - The Small Business Innovation Research Program and the Small Business Technology Transfer Program help ensure that the nation's small, hightech, innovative businesses are a significant part of the federal government's research
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PICTURES
Pictured with First Lady Laura Bush, three Afghan women are the recipients of a small business grant from the Women's Business Council.
Four students from Trent University after winning a local small business grant competition.
A couple wins small business grants through the Minority Business Plan Competition in Philadelphia.
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