Certification/Recertification Application
Certification/Recertification Application

Everything You Need to Know About Grants — Part 1

“In the United States, thousands of grants are available to small businesses, which are a vital part of the economy,” as noted by Investopedia. This includes business grants that specifically help to break down funding issues. Unlike loans, grants typically do not have to be repaid. However, it’s important to note that the IRS does consider business grants as taxable income.

Where can grants be sourced?

“Grant sourcing is a daily activity that requires grant-seekers to find a database with an interface they find comfortable and user-friendly,” according to Curt Watkins, EMSDC Director of Operations and External Affairs. There are many large grant databases that do a good job of sourcing grants from both public and private sources, such as GrantWatch.com. It’s best to try out several of these popular grant databases (utilizing their FREE versions at first), and then decide which works best for you. At a minimum, Curt recommends looking for a database that allows you to save search histories and search by geographic region.

How do competitive grants and noncompetitive grants differ?

Competitive grants fund specific projects with a fixed timeframe. They require a proposal that outlines your goals and needs, and you will be competing against other organizations to secure these grants. On the other hand, noncompetitive grants are awarded without a competitive application process, and they are typically based on meeting specific eligibility requirements, such as being an educational institution or small business.

What types of grants are available to small business owners?

According to Curt Watkins, “small business owners can apply for a wide variety of grants, determined mainly by the nature of the business and its location.” Common options include:

  • Federal Grants: These are offered by various government agencies. For example, the Small Business Administration (SBA) provides grants for small businesses in specific industries, particularly those involved in research and development. These will typically be the most lengthy and detailed applications to complete.
  • State and Local Grants: These typically focus on areas like economic development, job creation, or specific community initiatives, such as hydroponics and agriculture. Slightly less lengthy, they sometimes offer the opportunity for small businesses to connect with a live grant administrator throughout the process.
  • Nonprofit Grants: Some nonprofit organizations provide grants to small businesses, typically in the areas of healthcare, education, environmental issues, and others. Though these are typically the shortest and easiest grant applications to complete, they can be very difficult to win without a direct relationship with the funding organization.
  • Industry-Specific Grants: Some grants are specifically tailored for certain industries, such as technology, healthcare, agriculture, or green energy. These grants often aim to bolster a movement, aid in the adoption of new techniques, and/or foster innovation and sustainability. Most industry-specific grants are noncompetitive, and they can be a godsend for organizations that fit the criteria.
  • Grants for Certified Groups: This is a highly competitive category that aims to promote dynamic Whether it’s helping businesses to become certified, finding consulting help, or connecting with banks or government agencies, these grants can help achieve many business goals.
  • Emergency Grants: During times of economic crisis (think Covid), government-affiliated agencies may step in to provide emergency grants to help businesses survive. These are typically short applications that yield funds within 30-90 days. Agencies may circle back to do accountability and outcomes measurements long after the crises have passed, meaning record-keeping is critical.
  • Business Competitions: Some organizations award grants via annual competitions. Often promoted as a way to encourage business innovation, winners rarely repeat, and the grants are typically accompanied by a showcase event. Grant competitions are a good opportunity to network and get publicity for your business, but make sure you trademark and protect your ideas first.

Grants have two important time frames. For many organizations, the fiscal year concludes at the end of June, while the new fiscal year starts in July. Therefore, spring is a very active time in the grant cycle. The second busiest time frame for grants is January, as noted by Curt Watkins.

Stay tuned for Everything You Need to Know About Grants — Part 2, where we will cover what a small business needs to be grant-ready.

The mission of the EMSDC is to stimulate and support economic development throughout Pennsylvania, Southern New Jersey, and Delaware. As a 501(c) (3) non-profit organization and regional affiliate of the NMSDC, we certify and connect our certified member businesses with member corporations to create a more dynamic supply chain. We invite you to explore our website at emsdc.org to learn more.