Online Business Grant
Module 7 - How Business Grants Work
A. 6 ways to apply for business grants
1. Paper/Online applications
6. Matching Grants
B. Legal Perimeters of Business Grants
1. Milestones and legal matters
C. How Grant Funds are Issued
There are Only 6 Ways You Can Apply for a Business Grant
Entrepreneurs that are unaware of how business grants work, believe you apply for business grants in the same way student apply for grants to attend college. This is far from the truth, business grants are package in several types of platforms. The platform in which a business grant will be given is determined by the grantmaking agency.
Paper or Online Application
All business grants start with some sort of application, but only a tiny fraction will stop there. The number of small grants business to apply for that will only require a simple application is the most challenging business grants to find, and only a couple of grantmaking entities use this method.
Business challenges that give away business grants has become increasingly popular among startups. In this format it is common for a business team to apply to compete, in most cases it is an eligibility requirement in order to participate. Business challenges favor technology ventures, and almost always offer grants ranging from $15,000 to $150,000. 100% of business challenges involve multiple steps in order to apply. Due to the large grants, some challenges will require your go through a short program, where you are competing against other teams to receive the grant..
Applying to business competitions awards large grant amounts, they involve multiple steps in order to win, and they are some of the most popular business grants available. Business competitions usually require a business plan and you will have to compete against other entrepreneurs to win one of the several grants that are being offered, some business competitions require travel.
Accelerator programs involves classroom time before you are awarded a business grant. Accelerator programs usually last from 3 to 8 weeks, that time is spent going over entrepreneurial concepts and business startup training. Most accelerator programs end with a capital investment, but very few programs give away business grants.
Business pitches for cash are so popular they are several reality shows based on it, there are hundreds of business pitch competitions throughout the country that issue several grants in varying amounts each year. The process of winning a business grant through a business pitch is usually initiated by an application process, if your application grabs the attention of the grantmaker, you will be invited to present your pitch, this may or may not involve trailing to to the grantmaker to give your pitch.
With a matching business grant program, you have to put up a specified amount of money, that is predetermined by the grantmaker, once your business grant application is approved, you will need to provide proof of funds, once that step is complete, you will be issue a matching grant dollar for dollar. If the required amounts is $10,000, you will be provided a grant for $10,000, this is how matching grants work.
The Legalities of Business Grants
One must be of accepting a business grant, and be fully prepared to implement the business plans presented to the grantmaker. Acceptance of a business grant is the acceptance of a legally binding agreement between yourself and the grantmaker. Failing to use a grant for your business venture as you outlined in your grant application will result in your business grant being converted in to a full loan you are required to pay back. Grantmakers also reserve the right to take it a step further and sue you for any assets you may have purchased with the business grant.
Business milestones are utilized convert your business strategy and tactics into action, its also a method used by grantmakers to track if your keeping up with the details of your business application. Exactly like a milestone on the side of a road marks how far you've gone, a milestone in business tracks your progress as you grow and implement your plan. Same business grants are give in installments, as each milestone is is achieved, a fraction of the business grant is issued, if you fail to meet a milestone, no money will be given, if you do not keep up with your milestones your grant will be forfeited.