Grants for small businesses abound, yet only a small percentage of them are taken advantage of every year. That means that every year billions of dollars that could be invested in burgeoning businesses go unspent. Small business grant money, and even small business loan money, is easy enough to get hold of with nothing more than the ability to follow explicit directions and hit deadlines. With those two characteristics and a pen (access to the Internet helps), a small business grant can be yours.

A grant is a sum of money offered by a grantor, usually the government, a charitable institution, or an educational institution to cover the cost of a specific project or time period. For example, there are grants for college tuition, grants to cover living expenses while an artist works on a project, grants to cover the cost of supplies for scientific research, grants for small business banking needs, or business start-up or expansion costs. Grants do not need to be repaid, although there are also small business loan grants, but those are a different matter. You will most likely, however, be required to show how you used the funds – in detail. There are government grants for almost anything, and the criteria to qualify for these grants are usually very specific and require a lot of your small business information.


Getting government grants for small business depends on a number of things. It starts with a clear assessment of what you have to offer and who you are. There are a number of questions to ask yourself that will help you narrow down your search. Do you have a strong non-white heritage and are opening a minority small business? Are you a woman? Is this a change of career for you? Are you under the age of 30? Are you opening a business in a new field or a new aspect of a thriving field? Does or will your business serve the scientific, farming, or education communities? Will your business serve to research aspects of any field? If any of these characteristics describe your business, then start by looking at the long lists of organizations that provide grant money with these specific things in mind. If not, there are still a number of generic business grants available through the government. It may take a little bit of creativity, but finding a list of grants that would suit your business is not as hard as it sounds.

The type of business that you run, as well as who you are and your background, will be components of consideration for some grantors. Some characteristics of a business that would be suitable for grants include:

Your business must satisfy a real, honest need. This can't be a sham created to get money, but an honest passion of yours that fills a real need in the economy or in the community.

You must have a strong and detailed business plan with a clear goal and detailed path outlined to achieve that goal.

A business that offers something that no one else does or that no one else wants to offer has an even higher chance of being chosen for a grant.  This is especially true if it could somehow serve the organization that is providing the grant.

When you choose the grants that you would like to apply for, request applications from each one as well as any guidelines that they have to offer. If they have websites with profiles of past winners, check this out. Take advantage of everything available to help you. When you have your applications, create a schedule for yourself. Start with writing in the due dates and the last day you can mail your application in order to get it in on time. Work your way backward to the present day with the steps you will need to take in order to satisfy the requirements for the application fully.

You will need, in addition to the application, fully researched data that is recent and compelling to support the need for your business as well as an expert or experienced manager to oversee the business project if you are not that person. You will also need to show that you have the financial background to handle money properly and if you are a new, first time business owner then you will need a highly detailed financial prospective for the next year, five years, and ten years. A full business description is a must, including who your distributors will be, your advertising plans, what you will offer and who needs it, how you will market, how you will expand, and every other detail that is specific to your unique business.

Though anyone and everyone can apply for general small business grants, finding one that seems as though it was built specifically for your business goals or matches your ethnic or religious background may be a better choice. Small business grants for women, for example, are common. There are even whole organizations dedicated to helping women find funds to invest in their business. Research, research, research! Find out who knows what you need to know, find out who has the money you need, get the applications to apply for that money, and fill them out to the letter and turn them in on time. Then go onto the next application and do it all over again. There is no limit to the number of grants that you can receive from different institutions.