Grants is a financial assistance given to Small Businesses for specific purpose.
Small Businesses requires financial support especially at its startup to cover operational expense.
Many financial institution openly avoids any sort of credit facilities to startup because of its volatile nature.
Largest Grants donor includes Government, Non governmental institutions, big businesses and successful Entrepreneurs.
National Government sometime use Business Grants to encourage entrepreneurs to concentrate on a particular industry.
Types of Small business Grants
Free Business Grant
This is the most popular grants. It's mostly given to start-up and established small businesses without any obligation of repaying the money.
Soft loan
This is a unique type of business loan with lower interest rate and considerable repayment options.
Rescue grant
This is given to struggling but valuable business or industry. Sectors that receives such bailout are important to national development.
Sector grants
This grants is meant to encourage start-up in selected Sectors or industries like Agriculture and Textile.
This grants is meant to encourage start-up in selected Sectors or industries like Agriculture and Textile.
Reasons for Small Business Grants
1. What small businesses actually need is not credit facilities from financial institution but support in the form of business Grants. Not all small businesses have the golden opportunity of Silicon style Angel investors or venture capitalists.
2. Some small businesses takes time to break-even. However, with some financial support, some can survive.
How to attract small business grant
Even though most small businesses are qualified for a business grants, few of them actually get it.
These are the procedures to follow in attracting business Grants.
These are the procedures to follow in attracting business Grants.
1. Register your small business
It's advisable to register your business at least few years before applying for Grants because many small businesses are not registered.
A traceable office address and annual filling of return, regular tax payment and compliance with statutory deductions could be an added advantage.
2. Register with business cooperatives
Some Grants is directly given to business cooperative and trade organization for disbursement especially agriculture.
3. Take part in essay competition
This is vital for a start-up. Non governmental organizations and big businesses often advertise for submission of essays on specific topic in return for business grants.
4. Request for small business Grant
Many national government or NGO has a small business grant procedures.
Small businesses that are struggling and feel grants can simply bring them back on track should kindly take bold step in requesting for rescue grant.
It's not a crime to request for Small Business Grants because even big businesses often get rescue fund.
Finally,
The only small business that doesn't necessarily requires small business grants and can survive bank loans are importers and traders.
