What is a grant in business?
Grant in business enables the eligibility of individuals, companies and organizations that have certain financial resources to qualify for a grant. The government, NGOs or private sector can offer an amount of money as a grant for a specific purpose that is to achieve their objectives. Grants can be for research, community development and even training to increase productivity.
Reasons to Get a Small Business Grant
Grants are a great way to raise capital. When you need money to purchase equipment, begin a new business or hire new staff, a grant can help get your project off the ground. Small business grants are available across the country and vary in terms of funding amount and how long they will last. Here are five great reasons to get small business grants:
1. Grant in business? It’s free money (sort of). Rather than relying on annual fundraising, which can feel overwhelming and exhausting, a business could apply for a long-term funding program from the government or other organization. Like other types of grants that you may have heard of before, these come with certain restrictions to help ensure good behavior.
2. Grant money can help to shore up working capital, help the business fulfill its growth ambitions, or decrease seasonal cash flow. Grants are an important part of any business’ growth strategy and require a careful consideration before applying for one. Businesses can use grant funding to cover their short-term funding needs while giving them the extra cash they need to take on orders or boost their inventory level.
3. Your business might require the purchase of new assets to improve your operations and increase sales. Sometimes these expenses can be unaffordable without loans, or grants. The Grant can help fill this void by giving you the money and credit you need to buy these new assets.
4. A grant is a financial boost that you receive in order to design, build and operate a business. This is something that will not only help you to get your business off the ground but increase your chances of succeeding in the long term. A grant can help you cut down on start-up costs and provide you with an influx of cash that could be put toward research, design and more.
5. You can apply for grants that will help you expand your business. For example, the Small Business Administration provides grants to assist small businesses with export development or to create new jobs. In addition to these opportunities, there are other grants that can help you expand into other markets such as the Department of Commerce’s International Trade Administration (ITA).