Everything You Need To Know About Business Grants

2. 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 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. Pictured with First Lady Laura Bush, three Afghan women are the recipients of a small business grant from the Women's Business Council. 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. However, those who are in it for the long haul will reap huge rewards from the financial assistance that grants can bring.

Table of Contents 1 Business Grants - An Overview 2 What Are Business Grants? 3 Why Do They Exist? 4 Small Business Grants Vs. Minority Business Grants 5 How To Find Business Grants and Loans 6 How To Apply For Business Grants 7 What Are The Disadvantages? 8 Business Grant Resources