How to Get Grants to Help Small Businesses in the Economy

There is no denying that today’s economy has put numerous strains on small businesses. A lack of capital makes starting, maintaining and growing a business difficult. Grants award business owners a sum of money to start or expand an existing business. Unlike loans, grants do not have to be repaid. The Internet offers a wealth of information on different types of grants and helps you narrow the qualifying parameters of each program.

1. Create a business plan, and determine the financial needs of your business. Winning a grant relies on information on the application and proposal. A grant proposal outlines the specific need and use of the money. Ask for help from an experienced grant writer to improve your chances of receiving grant money.


2. Search the Federal Government’s grant website, grants.gov. Use the search function to narrow the different grant categories. The website allows you to search by funding activity, agencies offering grants and eligibility criteria. Submit and track grant applications online.


3. Find a grant search section on the Small Business Administration’s website. The majority of the grants apply to non-profit organizations, state and local governments or lending institutions. There are some grants available for high-tech or research and development businesses.


4. Review the Catalog of Federal Domestic Assistance, CFDA, website for programs offered by a variety of Government agencies. Know that the majority of grants specify certain restrictions such as minority-owned businesses, community-service businesses or rural-community businesses.


5. Look for grants at the state and local level through economic development agencies. Search for their contact information online or in the phone book. Contact the local chamber of commerce for names of grant organizations in your area. Cities or rural communities wanting to boost the local economy award grant money to new business that set up shop in town.


6. Use the Internet to search for small business grants based on your business niche or special eligibility group. Research and development in agriculture or medicine may qualify you for grants not available to anyone else. Women, minorities, veterans and people with disabilities qualify for a number of small business grants.


7. Search the grant database on the Foundation Center website. This searchable database allows you to search for free money sponsored by foundations, non-profit and charitable organizations by category, state and purpose of grant. The site also offers information about the application process.