Federal Grant Money
In this specific discussion we
are going to focus on federal grant money and how you can obtain funding from
the federal government in order to develop and launch your business operations.
As we discussed before, as it relates to obtaining government grants and
small-business loans, federal grant money is typically reserved for individuals
have fall into a specific disadvantaged ethnic group or that the business will
be owned by a woman. However, there are a number of exceptions to these rules as
it pertains to receiving federal grant money for your business. Foremost, we
strongly recommend that you should tenuously visit the grants.gov website when
you're searching for federal grant money, for grant programs, and other federal
benefits that may be available to your business so you can further your
entrepreneurial activities that were seeking capital from the federal
government. It should be also noted, a number of the federal grant money
programs that are available are specifically geared towards individual firms
that are operating on a for-profit basis to provide a tremendous general benefit
to the community. Namely, a vast number of federal grant money programs that
have been developed and approved by Congress are specifically geared towards the
development of new energy technologies. This, of course, is primarily due to the
fact that the
United States is addicted to oil and finding
new ways of improving the energy grid and other energy infrastructures is
imperative to the ongoing security of the country.
As such, you can see that
primarily when you apply for federal grant money that you are undertaking
responsibility not only develop a profitable enterprise, but you also need to
provide a tremendous benefit to the country for your localized community. There
are a number of specific federal money grants out there that focus specifically
on assisting businesses with developing new locations in underserved areas. This
is primarily due to the fact that the federal government would rather have a
small business entrepreneur develop services for a rural/urban area rather than
having to spend the money to manage and develop services on their own. This is
one of the tremendous benefits to federal grant money, and you may able to
provide general business services imperative for a rural community in which are
operating within so that you may be an excellent candidate to receive federal
grant money programs. Of course, much like applying for any other type of grant,
but you'll need to have a well structured business plan that clearly showcases
how you intend to use these funds. Unlike our discussions as it relates to
business loans, leasing, and investment, capital, and other forms of investing,
federal grant money providers require that you can clearly showcases more so the
benefit is going to provide to the community and less so the collateral that
will be used to secure any type of equipment purchase that you will be
undertaking. The other interesting things about receiving federal grant money
are that you typically do not need to repay these funds provided you operate
within the guidelines of the specific grant program. This substantially makes
the process easier as it pertains to providing the appropriate financial
statements that are going to be reviewed by the federal grant money program that
you are applying to. However, while the financial requirements in order received
a federal grant money are typically less stringent than those of traditional
financial institutions, you still need to be aware that the federal government
wants to see that you're developing a for-profit enterprise that has a long-term
economic viability. This, of course, is due the fact that they want to ensure
that their investment, through federal grant funds, will provide a better
community, a technology business, minority owned business, or a female owned
business with in ongoing stream of revenue throughout the life of the company.
The federal government is not simply in the business of handing out money on it
a free basis with no intent of providing a benefit to the general public,
inner-city communities, rural areas and the other type of area in which they're
seeking to improve partnerships with for-profit businesses.
In your search for federal
grant money, you can certainly conduct a search on your own accord by going to
the number of different websites are available and managed by the federal
government in showcasing which grant programs are available to you and your
business. You can also hire a gram search company as well as a grant writing
company that actively assist you in finding the federal grant money programs
that are most appropriate for your business. In one of our previous articles, we
touched on the fact that you need to be careful when working with a grant search
company or a grant writing business. Recently, the number of scandals involved
pertaining to the usage of these terms in order to receive federal grant money
capital that is being sought from the federal government. Issues pertaining to
these firms primarily relates to the fact that they charge their customers
substantial upfront fees, in some cases upwards of $10,000 before they are even
able to secure capital on behalf of their clients. In many instances, these
grant writing firms and grant search firms never actually produce anything of
value that would leave the client receiving federal grant money. As such, and as
we discussed before, any time you work with any firm that is actively assisting
you with obtaining capital for your business should conduct a thorough search of
people they work with in the past, their profile, their Better Business Bureau
record, and their success rate as it pertains to securing federal grant money.
Through these discussions, as relates to federal grant money and other grant
programs, will continue discuss the issues as it pertains to working with these
firms while concurrently showcasing new to you how you can save a tremendous
amount of money by conducting this work on your behalf.
In regards to grant writing
firms, this will be the best investment that you make as it pertains to securing
federal grant money that they were able to produce for you the appropriate grant
application while concurrently developing a business plan that is specifically
focused on the grant program to which you're applying for. In many instances,
you can anticipate that the fees associated with grant writing services
typically range anywhere from $300-$3000 depending on the complexity of your
business and the specific federal grant money program that you're applying to
for funds for your entrepreneurial venture. When you are working for grant
writing firms then you need make sure that the specific focus of the
documentation that you will be required to provide to the federal government is
very appropriate for the specific nature of your business and the specific
nature of the federal grant money program that you need. Returning to our
discussion as it relates to grant search firms, this is the part of the capital
raising process, as it pertains to grants, that you should be very careful with.
This is primarily due to the fact, again, that these firms to charge substantial
upfront fees and often times not produce the results that are needed as relates
to securing federal grant money. Again, a number of major grant search firms
have recently come under a tremendous amount of scrutiny from the number of
attorneys general among all states as it pertains to securing capital on behalf
of their clients have investigated many of these firms. This is primarily due to
the fact that these grant search firms have overinflated their ability to
provide effective capital sourcing services as a relates to the federal
government grants. Of course, it saddens us to have to continually mention these
issues primarily due to the fact that there are a number of legitimate firms out
there that are very helpful when you're searching for the appropriate grant. The
most legitimate firms that work within the grant search industry only charged
small upfront fees, but with a large contingency fee if they are able to place
the federal grant money up on your behalf and on behalf of your company. As
such, when you're working with these types of grant writing companies then may
be in your best interest to focus on the working with an individual or company
that works primarily on a contingency basis. This will ensure that the money
that you're spending in order to effectively obtain federal grant money, what
will be done appropriately and with your best interest and market. This, much
like our discussions pertaining to business loan brokerages, more clearly as
aligns the interest of the grant search for the fat of your company.
As you continue to apply for
federal grant money, it is imperative that you not only have the appropriately
developed business plan to showcases to the specific grant program a as to how
you intend to use the funds, but also to develop a second piece of documentation
that clearly outlines the benefits of the community that you're going to be
operating with it. Many people often put this directly into their business plan,
but in is our experience among clients are seeking federal grant money that the
best results come from developing a unique document that showcases the specific
area that you're working with and estimated benefit that it will be for the
community at large as you receive federal grant money. This document should
include clearly showcasing the geographic region that are operating and,
especially if you intend to develop a for-profit enterprise, underserved area,
or inner-city area. If you are seeking federal grant money for the development
of new technologies, then you should also develop a second piece of
documentation that clearly shows that the potential result that will occur once
the grant money has come into place. This will drastically assist you in your
search for federal grant money as it relates to receiving grant funds from the
federal government. In the second document, especially if you are developing a
business and you underserved area, you should focus on job creation, the overall
economic benefit to you as to why you should receive federal grant money, and
other issues pertaining to the benefits that will arise from your usage of the
songs. Again, the primary reason why a number of federal grant money programs
have been developed so that it entrepreneurs can specifically developed
businesses, real estate ventures, and other ventures that seek to benefit the
community without having to have the federal government actively develop and
manage constructions, infrastructure developments, and other factors that go
into the development of new enterprises. It should be noted that one of the
recent pieces of legislation known as the American Recovery and Reinvestment Act
has provided for a number of different new federal grant money programs that
allow entrepreneurs to specifically capitalize on the demands from the federal
government to assist small and medium-size businesses with jumpstarting the
struggling economy. We recommend that you check out these discussions, as they
are related to small business administration loans as well the requirements for
federal grant money which have dropped substantially as the federal government
seeks to pump money into the economy with the intent to create new wealth for
small business entrepreneurs who are creating new jobs and the economy at large.
Again, within any piece of documentation that you develop in regards to your
application for federal grant money, we strongly recommend that you focus
substantially on the economic benefits that you intend to provide to the
community job creation. With unemployment rates nearing 10%, the demand among
politicians as well as federal government regulators has increased substantially
for new programs that create economically viable jobs as long timeframe. As
such, if you able to clearly showcase within the documentation that you are
developing the you all stand it excellent chance of receiving the federal grant
money that you are applying for as your primary funding source.
The primary differentiation
between federal grant money and federally sponsored loans is that in the event
that you receive a grant you typically do not need to repay any of the funds
that you received. However, this is not always the case as it pertains to the
federal grant funds. In some instances, grants may come as abatements on
interest rates, payment reeducation penalties, and other forms of protections in
regards to your business operations. In these circumstances, you may be required
to repay certain portion of the grant funds that you receive from the federal
grant money program they used that specifically apply to when you were seeking
grant funding. You should always review the documentation that is provided to
you by the federal government, as it pertains to the federal grant money
programs, as to whether or not there will be a repayment. Of course, if any of
these terms seem foreign to you we strongly recommend that you work with a grant
writing company, a grant search expert, a certified public accountant can
further educate you as to the terms that you will face in regards to the grant
that you intend to receive from the federal government. Additionally, these
individuals and firms can assist you with developing the appropriate
documentation when presenting your case to federal government and its related
agencies. It should be noted that the documentation that is required when you
are applying for a grant is typically substantially greater than applying for a
conventional business loan, business line of credit, small business
administration loan, or other type of traditional financing. Again, this due to
the fact that there are a number of individuals out there that seeking the same
financing as you are seeking through specific grant programs. Unlike banks and
financial institutions which have a tremendous amount of capital to lend to your
business, the federal grant money programs have a cap as to how much money they
can provide the specific grants. Although these programs often allocate hundreds
of millions of dollars for specific developments, the demand among individual
entrepreneurs for this money is tremendous given the fact that, ultimately, it
will never need to be repaid to the federal government. By providing your
business with federal grant money you are receiving a no-cost, no repayment
investment from the federal government
with the intent to better the community in which your business will reside.
It should also noted that many
of the federal grant money programs that are out there are specifically targeted
towards small businesses. The primary exception to this rule is for corporations
are developing highly experimental pieces of technology that will provide
promising results as a relates to improving infrastructure and improving the
electrical grid area has become one of the hot topics among political debates as
the United States currently uses a tremendous man of energy from foreign
sources. However, certain large corporations do have access to certain federal
grant funds especially for large-scale infrastructure development projects.
However, again, a vast majority of federal grants are geared for small
businesses and small business entrepreneurs. This is primarily due to the fact
that large corporations have a much easier time sourcing the capital he needed
from traditional funding sources such as banks and other financial institutions.
When you're seeking the federal money grant program that you intend to apply to
then you should clearly look to acquire the funds that have been set forth by
the specific program. Upon many of the websites are operated by the federal
government, the requirements for each federal grant money program are clearly
spelled out in the description of the specific grant program. As such, you
should make sure that your business falls into those categories prior to even
applying for the grant as you would be immediately rejected should your business
not fall within one of the acquirements that has been set forth by the specific
grant program. Additionally, for some federal grant money programs you may need
to have what is known as the SBA 8a certification. The certification, is granted
by the small business administration, and allows that individual small
businesses to work directly with the federal government as it pertains to
receiving contracts for work, the federal government grants for small
businesses, and other benefits that are outlined among a number of other pieces
of legislation as it relates to the ongoing development of small businesses
working with small business entrepreneurs. As we've mentioned previously in some
of our other discussions, the U.S. Congress has introduced number of new pieces
of legislation that require that a certain percentage of any federal government
contract go to a business that is certified by the small business administration
as an 8a certified small business. As such, as you continue to look at the
requirements for federal grant money programs encourage you make sure that your
business falls within the guidelines of the eight a small business
administration program so that you can effectively receive the capital you need
via a federally sponsored grant program. This is going to be one of our
continued discussions as it relates to the SBA 8a program and how you can
receive financing from the federal government walk on currently receiving
contracts allow you business with the federal government on an ongoing basis.
This is one of the beauties as to working with the federal government is that
the only provide you with the money that you need to start your business, but
also provide you with contracts that will provide your business with revenues
and profits. Of course, it is not as simple as that as it relates to the program
money and receiving federal contracts but the demand within in the federal
government to provide this service for small business entrepreneurs and
medium-size businesses.
There are also a number of
different stimulus grants that are now available to you even if you're not
directly serving the greater good of the community, but rather are looking to
expand your business during the difficult economic times and we are currently
experiencing. However, it should be noted that a number of these stimulus grants
are specifically geared towards business is that intend to do a significant
hiring as they receive the funding they are seeking. Again, the American
Investment and Recovery Act has provided for a number of grants to small
businesses that are growing and are economically viable, but are having
difficulty finding the capital they need through traditional funding sources. As
such, you can apply for one of these stimulus grants from a number of different
federal grant money programs today are able to receive the funding need to
expand your business not necessarily providing the greater economic benefits
that we discussed earlier within this article. Of course, when applying for
stimulus grants through federal grant money programs you will need to present
much of the same documentation as if you're applying for any other type of
federal financing program. This includes having a well-developed business plan
as well as a secondary document that showcases how you intend to use these funds
especially as it relates to the hiring of new workers. In the second piece of
documentation as it relates to stimulus grants as well as federal grant money
programs, you should clearly indicate that he will are going to hire new people
with the funding that you receive. Again, by showcasing a benefit to the federal
government, via your grant request, you put yourself in a much better position
of being accepted into one of these programs as relates to receiving money from
the federal government. Of course, you also need to show the federal government
the economic benefit they'll be rendered to you and your company by receiving a
stimulus grants. The best candidates for stimulus grants, as we discussed above,
are typically individuals that fall into any minority category for that the
business is owned by a female.
As it pertains to federal grant
money funding, with a focus on solar grants because they have become the most
popular programs that are available through the federal government as an
alternative funding source. Solar energy has become an extremely popular method
of generating electricity, at very little cost, for the electrical grid. As we
discussed above, the demand for grants among entrepreneurs are developing new
technologies while expanding the energy infrastructure the
United States is tremendous. Additionally, on a
political basis the demand among congressmen to have the
United States have been all but foreign sources
of energy has also increased substantially. As such, if you are an alternative
energy entrepreneur, as stated earlier, then you excellent chance of receiving
the federal grant money that you are seeking if you are developing solar energy
programs. The costs that are associated with launching a solar energy business
are relatively low as they can be scaled up quickly to any size provided that
you have the necessary space. In many of our future articles, to discuss solar
grants on a much greater detail so that you can have a clear understanding as it
pertains to receiving federal grant money for alternative energy programs. As it
pertains to alternative energy, there are a number of programs available out
there beyond solar grants that apply to biodiesel companies, companies are
developing new forms of energy, as well as businesses are looking to produce
energy-efficient products that substantially reduce the draw of electricity from
the electrical grid. As time progresses, it is anticipated that the government
will aggressively ramp up its programs as it pertains to solar grants and other
forms of federal grant money in relation to alternative energy sources and
alternative energy projects.
In conclusion, the demand for
federal grant money is tremendous primarily due to the fact that there are very
few stipulations that are tied to receiving this type of funding. As such, you
will be in competition with a number of different entrepreneurs as well as large
corporations are seeking to capitalize on these programs while concurrently
providing an economic benefit and a social benefit to the United States with the
local community. As such, it is imperative that you have well prepared
documentation so you can clearly present your case to the federal government and
its related agencies so that you become the most viable candidate for receiving
federal grant money. If you are struggling in your search for before grant
capital, then we strongly recommend that you do work with a legitimate grant
writing for as well as a grants search firm that will assist you and guide you
through the process of finding the appropriate program is available for you
while concurrently assisting you with developing the appropriate documentation
that you'll need to submit with your grant application. Again, prior to working
with any of these firms, you must be your due diligence with any group that
you're working with is operating in your best interest in that they are looking
for capital on your behalf and there are no conflicts of interest as it pertains
to sourcing grant capital on behalf of your company. In doing so, you'll save
yourself a tremendous amount of headache and a tremendous amount of money as you
progress through this type of capital raising activity and time in your
business. Also, it should be noted that unlike financial institutions which
typically provide lending decisions investment decisions within a matter of days
or weeks, federal grant money programs can take up to six months to one year
before rendering a decision as to whether or not to disperse funds that have. As
such, we strongly recommend that as you are looking for federal grant money that
you also work with a number of different funding sources such as angel
investors, small business investment companies, venture capital firms, and other
funding sources that can provide you with additional financing as it pertains to
your entrepreneurial activities. In most instances, you'll receive a decision
from these traditional funding sources much quicker than any federal grant money
program that you are applying to for your funding needs.
Additionally, you should never
be discouraged as you progress through your capital raising activities
especially as it pertains to federal grant money. For many businesses, the
capital raising phase of these businesses typically does take anywhere from
three months to one year to complete. As such, and again, is very important that
you're prepared to discuss at length with any individual, investment firm,
federal government agency, or state government agency exactly what you intend to
do with the proposed funds that you are seeking. This is going to include our
article as it pertains to federal grant money and related grant programs.
In several of our subsequent articles will further discuss specific
grant programs that you can use as it relates to enact new technology in
improving the economy at large. Thank you again for tuning in and we look
forward to continuing to provide you with information as it relates to all of
your business planning, sourcing, and funding needs.