Know about business grants

Our society is so designed that there is one or another way to help people, no matter what their status is or whichever situation they are in. Funds, grants, loans, etc. were introduced for these very reasons. The presence of such financial help is a promise of growth and hope for both person/ institution that receives it and the society as a whole.

What is a business grant?

A grant is the sum of money that is paid by an individual/ business institution – public/ private or government agencies to an NGO, small business institutions, or an individual. Neither does it come with an accruing interest nor is one required to repay. These grants are mainly made for a specific project. Even small businesses are eligible to receive funds based on their requirements.

How to get a grant?

To receive a grant one is required to submit a grant-writing or a proposal, stating the purpose of the project. It can either be written by the seeker by the owner or upon the request of the funding agency.  If it is an NGO that is making the submission, especially in the business houses, then they would be required to mention about the tax-exemption status.

After submitting the proposal

Since there will be a lot of proposals that the business house or government agencies receive, they appoint a committee of experts to review it. Based on their report, the submissions with highest point of value are funded. This also helps the founding team to avoid any project that would come in conflict with their policies.

The benefits of receiving a grant

  • No need to repay
  • Since a detailed structure has to be laid down for the project, it is easy to keep track of milestones achieved
  • Once one grant is received, the other funding agencies too will be ready to invest in
  • Because a panel of experts has done thorough research on this, it gets validated automatically, thus boosting the confidence of investors

Drawbacks of getting a grant

  • It is not flexible. Once the grant is received for a particular project, it should be used only for that job. It cannot be spread over to another venture
  • Periodic submission of the project reports for the funding agency to keep a track of course and direction taken
  • If the funding is done by a government institution, chances are there that they might pay only half of the amount requested. It might also be done after the project is completed. In such a case the seeker will have to arrange for the required funds from elsewhere
  • Also, while submitting a proposal one has to make sure that they have covered all the points and have made a very convincing presentation. As there are others aiming at funds for similar work

There is a lot of support available out there. It is up to us to seek it in a right and effective manner.