Need business capital? Here's how to apply for a grant

One of the biggest challenges many business owners face is having a great idea or opportunity, but not having the money to make it happen. Fortunately, there are hundreds – perhaps thousands – of organizations that want to give money to small businesses in the form of grants.  

Grants are money that is given away, usually for a specific purpose. The great thing about grants is that you don’t have to pay them back. As long as you do with it what you agreed, the money is yours, free and clear.  

Corporations, non-profits, and other organizations will offer grants to small businesses for many reasons. Sometimes, it’s a way to get publicity for the company and to demonstrate its commitment to Main Street USA. In other cases, there’s a desire to promote business growth in a certain geographic area, or in a certain industry. Other organizations offer grants for certain demographics of entrepreneurs, such as businesses owned by women, Hispanics, Blacks, and other underrepresented groups. There are even small business grants for veterans and small business start-up grants. In any event, a grant could mean free money for your business, and that’s a good thing.  

Here's what you need to know.  

Finding grants for your business 

Grants are out there, but they can be elusive, and competition can be fierce. However, the more you can find, the better chance you’ll have of finding some that you’re eligible for, and of actually getting the award. There are a couple of ways to find grant funding for small businesses. 

First, you can use Google or another search method. This will likely turn up the most results, but you may have to sift through a lot of information that’s not relevant. The key here is to be as specific as possible – search for ‘grants for women entrepreneurs in food service’ rather than ‘business grants,’ for example.  

Related: 15 Small business grants women entrepreneurs can apply for 

You can also try a website that lists various grants that are available from different sources. Hello Alice is a comprehensive website that links to numerous grant opportunities.  

There are also services that will match small businesses with grants they may qualify for and will assist with your application. Danita Doleman is the managing principal of SEAS Community Partners, which recently launched Grants4Biz, an online portal for grant opportunities.  

“Grants4Biz identifies potential matches for your business with available grants,” Doleman said. “We comb the internet for grant opportunities, and then match them based on the profile that the business owner creates. We send notifications when there’s a match.”  

In the past five years, SEAS Community Partners has had 250 grants approved, with a 95% success rate. This represents $9 million in funding, with the largest award coming in at a hefty $400,000. The company uses its knowledge and experience in writing grants for non-profits, corporations, and government entities to assist small businesses in applying for grants through Grants4Biz.  

Choosing the right grant to apply for  

There are thousands of small business grants available, but applying for those you’re not qualified to receive is a waste of your valuable time.  

Doleman said, “I challenge people, and say, what is a grant that you think you can get? And are you eligible?” The Grants4Biz platform can narrow it down, so that you’re only applying for grants you have a solid chance of getting.  

The most important thing here is to read the grant application carefully. You want to be sure that you meet every single criterion for the grant. If you’re missing something, your application is likely to be rejected in the first round.  

When you’ve found a grant, you qualify for, make sure you have – or can get – all the information that is required to complete the application. Again, don’t leave anything out – you’ll be competing against other businesses that have provided all the information requested.  

Information required for a grant application 

Every grant application is unique, so read each one carefully to make sure you know what’s requested. There will be standard questions about your business, and some questions that are unique to each application.  

“Grantors will want to know about your project,” Doleman said. “What is it that you want to use the grant money for? They want to see a detailed budget and narrative. They may want to see financial statements, to see the financial health of your small business.”  

There is one other thing that grantors often want to see, that you may not consider when you begin the grant application process. “They also want to know how you are impacting the community,” Doleman said. “How are you giving back?” 

Grantors also want to know how your business is different from others. “You want to think about your story,” Doleman said. “What differentiates you, and how are you better than the next applicant?” 

Many grants will require that your business has liability insurance in order to apply. The grantor will request a Certificate of Insurance, sometimes called an ACORD, that shows the type and amount of insurance you have. If you don’t already have coverage, it’s easy to get a quote and get covered the same day.  

Related: What is a Certificate of Liability Insurance? 

What not to do when applying for a grant 

The most common mistake businesses make when they apply for a grant is that they are not able to articulate how they want to spend the funds, according to Doleman. “The grant will tell you what you can spend the money on,” she said. “And you will need to show that you spent it on what it was intended for and not something else. 

“You have to adhere to those guidelines. For example, in some instances, salaries may be an eligible expense, while in others it may not. The grant agreement will tell you the dos and don’ts and you have to adhere to the requirements for how those funds can be used.”  

Expert advice on applying for business grants 

Calling on her years of experience in grant writing and assisting grant applicants, Doleman has advice for those seeking grants for small businesses.  

“Do your research,” she said. “Make sure you have a compelling story. Make sure your application is in top-notch shape. If you’re unsure how to do that, hire a professional who has expertise in writing grant applications. And make sure it is submitted well before the due date. So many people wait until the last minute and then the website crashes and they can’t get the application in on time. Don’t do that. “ 

Doleman also recommends that grant applicants keep some perspective. “Grants are a gift. Grantors will be very specific about their requirements, so you have to adhere to everything they are asking for,” she said. “It’s their money, and they are gifting it to you.” 

Hear more from Danita Doleman about how she started SEAS Community Partners and Grants4Biz on the Hiscox Side Hustle to Small Business podcast.