Securing Small Business Government Grants

Thankfully, over the past few years, the government has realized that the small business sector is where the economic recovery is going to come from and to that end, a number of incentive programs have been developed. In order to get started, the first important point the small business must consider is the purpose of the application.

Is this grant application for starting a new business? Or is this perhaps to fund certain business ideas such as launching a new product or extending operations into a new territory?

Additionally, the government has a strong interest to fund minority small business grants as this sector offers particular strength in the export field, thanks to cultural compatibility, language capability and proven business agility.

Finding available funds

Before embarking on the search for small business loans, it’s pivotal to check that funds are available; it is not guaranteed that funds for the organizations requested are available all year round. Secondly, small business loans are more commonly available than small business grants, so timing is the key and the best chances for success are at the beginning of the period when the funds are made available.

Generally, the government agencies which will handle applications will keep up to date information on their websites so at any time, the availability of funds can be checked. If no funds are available for the intended small business grant requests, it makes sense to wait for the right opportunity. It also makes good sense to search for information on small businesses that have been successful in their application for small business grants or small business loans.

Oftentimes, there are extremely informative case studies about the business opportunity, the need for a grant or a loan and the intended success criteria of the project funding request. This information will help to shape the form of application that should be better received by the government fund agency.

Preparing the application

The application for a small business government grant should be prepared like a business plan and there must be a logical structure and a clear message to be sent across. One of the approaches to consider is the SMART strategy which means that your application should be:

Specific

• Well defined
• Clear to anyone who has a basic knowledge of the project

Measurable

• Know if the goal is obtainable and how far away the completion is
• Know when it has been achieved

Agreed Upon

• Agreement with all the stakeholders with a common goal

Realistic

• Within the availability of resources, knowledge and time

Time Based

• Enough time to achieve the goal
• Not an extremely long duration which can affect project performance

It’s important that all the team members who are going to be involved with the application request are aware of their roles and responsibilities as well as the various deadlines to complete their tasks.

Selecting the right government fund agency

Small business government grants are available at both the national and regional government level. It makes sense to take time to check if regional small business grants or small business loans are available as the process of working with a regional authority can be less arduous than working with the national government, in addition, regional small business government funds may be focused on activities that the small business is looking to achieve through grant acceptance whereas national government may be focused in other areas.

Typically, the application for a small business government grant will be through a government grant agency as there can be as many as twenty or more specializations by these agencies. It’s very important to check if the selected one works with the requirements of the organization. A particular example is that minority business government grant applicants should become familiar with the workings of Minority Business Development Agency (MBDA).

This agency helps to get access to minority business government grants, provides organizations with information and support through trade missions to export markets. As this sector has been highlighted by the US Government as one of its key targets for funding, the specialised program is known as the NEI National Export Initiative and the fund had a further injection of $140 million USD in January 2010.

The declared aim of President Obama is that minority small businesses will drive a doubling of export revenue over a period of five years starting from 2010, and will lead to the creation of two million new jobs.

Usually, the small business government fund agency should not charge for its services, if the small business is requested to make advanced payments or commit to financial commitments, the agency in question should not be selected.

If any proposals are considered to be too good to be true, they are probably just that and should be avoided at all costs as well. Small businesses have access to both telephone and internet based support organizations if they feel they have not been treated fairly or if they suspect any fraudulent activity.

Registering the organization and submitting the application

Registration and submission of the application will typically take place over the internet. It’s essential to start the process understanding that the initial registration acceptance can take up to two weeks to complete. If the agency of choice has information available in FAQs and tutorials presentations about its services either as videos or in documentary forms, review these carefully prior to your registration.

Also check if the organization is already registered with the small business government grants service, this can mean that the organization profile and history (if previous small business grants have already been issued) already exist and if the person chosen as the principal contact representing the small business already has a profile.

When information is submitted, it is vitally important that it is accurate and up to date. Without doubts, checks will definitely be performed, thus if there are irregularities, these could lead to delay or actual rejection of the application in its entirety. Once the registration process is completed, the principal contact can create user profiles for himself or herself, and assign profiles and privileges to the grant application team members.

Careful compilation of the application forms, additional optional forms and the provision of supporting documents such as plans, images and reports should be checked and double checked in order to ensure that the grant application has been initiated correctly.