Entrepreneurs who run small businesses typically operate on a tight budget. Government grants for small businesses are a perfect solution for small business owners to obtain funding for their business. The greatest advantage with receiving a government grant is that it does not require any repayment.
It is important to know of the terms and conditions that apply to Government grants for small businesses. For instance, a business cannot apply for a grant to start a new business or for the expansion of an existing business. There are very strict guidelines regarding the categories as well as the various programs under which a business is eligible for grants. Grants are generally provided for research or development needs of a business. Therefore, it is easier for technology based or pharmaceutical based businesses to get a grant as compared to a retail or service based business.
According to the catalog of federal domestic assistance, there are twenty-one categories under which a person can apply for grants. These include agriculture, art, business and commerce, community development, consumer protection, disaster prevention and relief, education, employment, labor, and training and energy. The other categories of grants are environmental quality, food and nutrition, health, housing, humanities, information and statistics, law, justice, and legal service, natural resources, regional development, science and technology, social services and income security and transportation.
The business and commerce category receives the most number of applications. Many small businesses apply for government grants to fund their research and development programs. Often, small businesses do not have sufficient capital to spare from their limited resources, to conduct these programs.
A small business can apply for a grant by applying online through the US government’s official website for grants. There are also many other private agencies that offer grant programs. A small business owner can choose from the many grant options available today. It is important to remember that the number of applicants under each category of grants is very high and it is quite possible that many grant applications would not be approved. Therefore, an organization has to prepare well prior to applying for the grant as their credibility is extensively checked as a part of the screening process for government grants.