Many people inquire about getting a grant to fund their small business, but getting a grant is quite difficult. In fact, on my apps, people ask precisely the question of how to get small business grants extremely often. First of all, not everyone is even eligible. And even when people are eligible, they must search for grants that they can apply for. And the success rate of getting a grant to fund a small business is very low due to many takers and only a reasonably small number of grants being available.
We will go over all these issues, but first let’s see who is even eligible for getting a grant.
To determine if you are eligible for a grant, visit the United States grant eligibility page. If you are not based in United States, just find the equivalent page for your country.
Just a reminder, many people who would like to get grants have the intention to use them for personal financial assistance. Below we list types of grants most readily available.
Grants For Government Organizations
Organizations within state and local governments, city or township governments, and special district governments are eligible for a number of different grants. Also eligible are Native American tribal governments (federally recognized and not-federally recognized).
Grants For Educational Organizations
A number of different types of organizations that deal with education are eligible to receive grants. These entities are independent school districts, public and state controlled institutions of higher education, and private institutions of higher education.
Grants For Nonprofits
Another popular category of organizations that are eligible for grants are 1) Nonprofits having a 501(c)(3) status with the IRS, other than institutions of higher education and 2) Nonprofits that do not have a 501(c)(3) status with the IRS, other than institutions of higher education.
Grants For Small Businesses and For-profits
This is a less common category of organizations which are eligible for grants. Towards the bottom of this article, there is a link to a tool where you can search for grant availability. If your project is in this category, that would likely be the most clear way to find out what grants are available for you.
Grants For Public Housing
One of the more common types of grants for public housing is for Public Housing Authorities such as the Indian Housing Authorities for example. For more types of public housing grants available, check the grant-finding tool provided in the link at the bottom of this article.
Small business loans and small business grants may be awarded to companies that meet the size standards that the U.S. Small Business Administration (SBA) has established for most industries. The most common size standards are as follows:
a) 500 employees for most manufacturing and mining industries
b) 100 employees for all wholesale trade industries
c) $6 million for most retail and service industries
d) $28.5 million for most general & heavy construction industries
e) $12 million for all special trade contractors
f) $0.75 million for most agricultural industries
Grants For Individuals
Individual can apply for grants on their behalf, and not on behalf of a company, organization, institution, or government. Individuals sign the grant application and its associated certifications and assurances that are necessary to fulfil the requirements of the application process.
People applying as individuals will be able to apply to grant opportunities that are open to individuals. An individual cannot submit a grant application to a grant opportunity that is just open to organizations.
Other Fundraising Ideas
Grants are not your only option if you are raising money. Take a look at our article on the different ways you can raise money. And take a look at this video with seven different fundraising ideas.
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Author: Alex Genadinik