11 Steps to Writing a Grant Proposal for Small Business Funding

This section should establish why you are seeking the available grant, describe your organization or project and illustrate your professionalism. What’s involved in the typical small business grant application process? The process for obtaining a small business grant has three main phases.

You should know that businesses of different sizes and types have different kinds of grants and they are different organizations that offer these grants. Government sites such as Grants.gov are excellent places to start your search because they offer the most variety of programs. However, there are also non-governmental sources where you can find grant programs. Small business grants provide free money to small businesses, startups and organizations alike. Businesses can use these funds to grow their business, recover from the pandemic or do work that benefits the public, among other purposes.

What is the Grant Proposal Process?

This is one of the major or even the only lure of grants. A grant differs from small business loans in that loans must be paid back, typically with interest. Because they offer free money, grant giving organizations are usually quite strict in their requirements.

The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. With the vast number of options available for this kind of funding, many applicants can find a grant that suits their business needs. However, there are potential downsides to seeking grant funding, including the competition and the time it takes to acquire it.

What is a Grant Proposal?

Our guide will help you write a better grant proposal and win more financial support for your project. Of course, one of the most important grant proposal topics is budgeting. This is the moment when you go into detail about exactly how you’ll be using the resources from an operational standpoint.

Explain the idea in the simplest way so anybody can understand it clearly. Remember that the project budget section is the true meat of your grant proposal. This is one of the most important steps to writing a grant proposal, as all funders will look for evaluations. Client recommendations, letters of thanks, and feedback from customers and the general public are must-have things to write in a grant proposal. Every winning grant should start with a brief executive summary. The key objective of your cover letter is to compel the reader to get to your proposal.

These include programs that target B2B-focused, tech-focused, veteran-owned, minority-owned and women-owned businesses. First off, those applying should start their search using Grants.gov, a website offering the most comprehensive look at federal grant options for businesses. The site has thousands of grants to apply to for companies from all backgrounds. The Grants.gov site lists federal grants from agencies including Health and Human Services, Department of Justice, Department of Defense and more. Business News Daily emphasizes the importance of meticulously following instructions when responding to a request for proposals. For example, grant proposals generally instruct applicants to follow a specific outline to use an attached template.

You can qualify for a small business grant if you are a small business owner looking to start and grow your business, and meet the granting organization’s criteria. The organization granting the funds will often specify what it is looking for during the application process. Call its office or review its website for more information about grant eligibility requirements.

Your grant proposal may or may not be successful

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee. Remember, the reader might not have your technical expertise in an area, so don’t overwhelm them with technical terms and jargon. Student’s productivity, increase their knowledge, and make their overall learning process better. Here you should emphasize the significance of your project and its contribution to science if implemented successfully.

Eligibility requirements vary based on the type of grant you’re applying for. A grantor may require that your business operates in a specific industry, fits its definition of a small business and meets a minimum annual revenue threshold. You also should stay informed about which grant making agencies or organizations change important personnel or grant fund requirements. That way, you won’t depend on getting grants that you no longer have access to and can plan properly for your future grant funding needs. Private organizations may also offer grants for businesses.

If your grant proposal is too confusing or too difficult to understand, it may have less of a chance of being accepted. Focus on conveying information in a clear, concise way and avoid giving it a lot of embellishments. The proposal should first address what impact the business will have on the surrounding community. Identify what the business aims to do, and make an outline of projected goals the business intends to accomplish. The project description section is the main section of your grant proposal.

How Can I Find Grants for My Business?

Eligibility for grants for small businesses, including COVID-19 grant funds, depends on your business type and the grant you’re applying to get. For example, granting agencies may only extend grants to those with certain statuses. So, you have a better chance at finding and getting approved for grants if you’re a veteran, woman or minority business owner, Native American or LGBT. Sure to read the grant guidelines carefully and provide all of the required information. Be sure to include a detailed business plan that outlines your goals and objectives. After you have determined what type of grants are achievable for your business, carefully read through the grant requirements and narrow it down to a few select grants.

• (The fact that there is a lot of money available doesn’t mean they will fund just anything).
• Specify direct costs—the expenses for which the requested grant funding will be used.
• Grants provide funds that you don’t have to pay back, unlike loans, which can help your business without putting you in debt.
• This means you can only use the money as stipulated and must adhere to reporting and accounting requirements.
• In this document you should pinpoint the main reasons the grant is needed and how it will solve the problems of the granting organization.
• Unfortunately, while there are a lot of loans that are specifically for veterans, there are very few grants.

To do that, you need to how to write a receipt how to write a grant application that gets results. Unlike other organizations, an NGO needs to drill down to the key community issues and show how deeply its work can affect the people it’s meant to serve. Primarily you should convey your message to the grant-making organization, even if they don’t know much about the kind of art you create.

Read Samples

Think about the people from the agency offering this grant who will read this proposal. How is what you want to do aligned with what this agency is all about? How much do these readers know about what you are interested in?

Grant committees know that understanding all the details of the grant proposal requirements can be a challenge, so they typically provide someone to answer questions that arise. Correct any grammar and spelling errors prior to submission and pay close attention to deadlines. The best way to start grant writing is to thoroughly research the funding source you’re interested in and make sure that your project aligns with its mission and goals.

However, finding available grants and applying can be time-consuming. But other federal government agencies and state and local agencies also provide small business grants. You can find grant funds for national business activities by going to Grants.gov where you’ll learn what’s available, how to qualify and how to apply. If going global is your interest, you’ll want to apply for a State Trade Expansion Program grant. Once you have a clear understanding of the grant program, you can begin writing your proposal. Start by introducing your business and outlining its mission and objectives.

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If applying electronically through Grants.gov please ensure that adequate time is allotted to register and download applicable software and forms. If you’re a small business owner looking for funding to grow your business, grants can be an excellent option. Grants provide funds that you don’t have to pay back, unlike loans, which can help your business without putting you in debt. To effectively respond and create a grant proposal, it helps to follow the grant application requirements in order. Answer each question that is asked using the same “voice” as that found in the documents.

Explain how the grant funds will be used to achieve these objectives, and provide a detailed budget outlining how the funds will be allocated. There are a variety of grants available for those looking to start a business. Grants are given to businesses for free, so they are not to be paid back.

• Don’t go to all that work just to have your proposal rejected because of logistics.
• However, to win a grant, you need to do your research and have a strategy.
• Explain how the grant funds will be used to achieve these objectives, and provide a detailed budget outlining how the funds will be allocated.
• Many government grants will have stringent personnel requirements because they want you to create employment with the money that they are giving you.

You may be guilty of fraud, too, which could cause legal issues for you and your business. The requirements for maintaining a grant are something you should be aware of ahead of time, although they are usually not too difficult. Once you establish an agreement between the grant funder and yourself, you are ready to move forward with your business or project. Reischer said a common mistake among business owners is not following directions.