Small Business Grants: How to Secure Financing for your Business

Every business can do with a bit more cash, and there are grants available to help. The process for applying for a grant is a little more complicated than simply putting your name on a list. You also need to remember that not every grant is right for your business. Therefore, learning about grants and grant-issuing organizations is the first step in securing financial assistance.

From my own experience, we’ve been successful and unsuccessful in a number of grant applications. Here is what I have learned.

How to get a small business grant

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This is not free money. Ok, well in a sense it is as lenders do not expect to be paid back. Lenders do not expect to take an equity claim to your company either. However, there are expectations and incentives for lenders to provide you with money.

Lenders want to see a return on their investment. This doesn’t mean a paid back. Instead, lenders want to feel that you and your business are contributing to their organizations mission and values.

Here are some key points to keep in mind.

1. Industry-specific grants

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Small business grants are normally targeted toward a business type or an industry. When searching for grants, focus on your industry. Don’t waste your time applying for grants not related to your work or your values.

Tip. Remember, the grant industry is small. By applying for grants in your industry you’ll be networking with the right people. So even if you are unsuccessful this time round, you will have built-up contacts you can lean on when other grants become available.

2. Read the eligibility requirements carefully

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Applying for grants takes time. This may sound like common sense, but ensure you read the eligibility criteria before you apply. It may be that your company is too big, it may be your company is too small, or there may be geographical restrictions. Check out the eligibility criteria carefully, before you invest your time completing the application.

3. Make sure your business aligns with the organization’s mission‍

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Aligning your business with the lender's goals, mission and values are essential to successful applications. Take time to truly understand what the lender organization is seeking to achieve and then base your application on that goal. Don’t submit generic applications. Sell your business in alignment with the lending organization.

4. Know what you’ll be spending the grant money on‍

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Know your numbers. Depending on the grant application, you’ll have to provide evidence on how you will spend the grant money. Even if the grant application does not require much evidence, you will stand in a much better light if you can truly show what you will spend the money on and how that will help your business. Knowing your numbers will help the lending organization align more clearly with your business.

5. Focus your pitch on innovation and expansion

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Organizations that issue small business grants typically favor businesses that they see as innovative, forward-thinking, and on a path to growth. Focus your pitch on how you plan to scale, any new technologies you might be developing (like Load List), and what your business can do to help the organization with its mission.

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List of grant funds

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USA

Australia

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