Everything You Need to Know About Grants — Part 2

In Everything You Need to Know About Grants — Part 1, we covered where grants can be sourced, how competitive grants and noncompetitive grants differ, the many types of grants available to assist small business owners, and more. Today, in Part 2 of this highly informative series, we will discuss what a business needs to be grant-ready.

According to Curt Watkins, EMSDC Director of Operations and External Affairs, “The most important factor influencing success or failure in competing for and/or winning grants, is a grantee’s back office. Having a sharp administrative assistant or department during the grant submission process is essential because there is simply too much in terms of information, documentation, and data exchange to manage for someone who doesn’t have this as their main job. One clerical error or erroneous submission could lead to disqualification.”

What else does a business need to be grant-ready?
There’s a lot to consider when it comes to securing grants for your business, but here are a few areas to focus on.

Business Plan: A clear, comprehensive business plan outlines your mission, goals, target market, services/products, revenue model, and growth strategy, and it is a must for any business. Typically, a grant application will ask that you forward one. Even if it’s just a formality, doing so can help to provide clarity on how grant funding will be used.

Financial Records: To secure a grant, you must have and demonstrate a history of maintaining accurate, up-to-date financial records, including income statements, balance sheets, cash flow statements, and tax returns. Grant administrators are looking for errors and judging the speed at which applicants are responding to requests, so be ready.

Eligibility Requirements: Have a clear understanding of the eligibility criteria for the grants you are applying for. This includes factors like business size, industry, location, and specific use of funds, as well as the population you serve and how you serve them. Grant application language is often lengthy and sometimes contradictory, so it’s smart to participate in grant info sessions and ask questions beforehand.

Grant Proposal Writing: Businesses can choose to hire professional writers that specialize in grant proposals, however, doing it yourself has never been easier. With helpful tools readily available on the internet, grant administrators are putting less emphasis on the language in grant applications, and some are even using AI to scan for relevant keywords.

Budget Preparation: A detailed budget demonstrates financial responsibility and outlines how grant funds will be spent. Be sure to include all expected costs, as well as any matching funds. Most grantors provide a template to simplify the process but pay attention to grant language regarding what can and cannot be purchased. Putting restricted items in your grant budget is a big red flag.

Major Partnerships: Some grants require partnerships with other organizations. Even if this is not the case, identify and establish partnerships with major community groups and organizations (such as EMSDC) that will show broader support for your project and strengthen your application. This can typically be demonstrated by attaching an MOU.

Compliance Procedures: Here’s where your back office and/or admin comes in handy. Businesses must have systems in place to ensure compliance with regulations and reporting requirements. This includes understanding any necessary certifications, licenses, or operational standards. Sometimes, this can be accomplished by demonstrating your relationship with an accounting firm as well.

Impact Measurement: Impact measurement is critical for all phases of the process. Funders demand to know how their investment will create positive change, so a business must be able to measure and communicate project success and impact. This should be accomplished by collecting and sharing objective data without flowery language.

Independent Audits: Particularly important for government grants, grantees should be prepared for potential issues by having third-party audits of financials or operations. This can build credibility with funders and put them at ease, especially with 6-figure grants, according to Curt.

Capacity Building: If problems occur, funders want in-house accountability and communication with the individuals responsible for writing and running the grant-funded program (one reason not to hire outside contractors when it comes to grants). Ensure that your team has the skills and resources necessary to manage a grant effectively, such as training in grant management and reporting.

To be grant-ready, businesses should be able to clearly state who they are, what they do, who they serve, and why they provide the service, and create a well-crafted grant proposal that explains the project, its goals, significance, and how it aligns with the funder’s priorities. If you are a certified member business of the EMSDC and in need of assistance with grants, contact us today.

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.