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Commentary on Grants

There are a lot of myths out there about Grants, and Government Grants in particular. These myths are perpetuated by people who want you to believe that there is money going begging that you can just go submit a simple application and walk away with, if you just know where to look. 

That myth is completely a lie. The reality is far from that.

NOTE: If you paid money to any company for information on grants, and found our information in their listings, you were mislead! Our grant is free, information about it is free, and we do NOT award ANY money for any purpose. This is STRICTLY a service grant, we provide SERVICES to help businesses develop a successful web presence, and nothing more!

Typically, money is not awarded to individuals. It is awarded through other organizations, usually non-profit organizations. There are exceptions to that, but NOBODY will give a grant to someone who is not able to demonstrate good credit, a track record of some kind that indicates an ability to succeed, and an application that shows that you can follow through neatly and accurately. Documentation is usually very extensive.

If you ask the SBA, they will tell you there are no Government Grants for starting a business. They will tell you that it is very difficult for for-profit businesses to get grant money.

That is, essentially, true - there are NO grants that exist solely for the purpose of helping you either start, or build, a business. However... there are some grants available that can help you advance a business, if you meet very strict criteria.

Grants are NEVER a shortcut - you will WORK for them, whether you win the award or not!

They come in two basic forms:

1. Private grants. These are hard to find, and highly competitive. One such is IdeaCafe, who periodically grants a $1000 grant for business ideas. Private grants tend to be fairly small, and pretty specific, and require a pretty good documentation process for the award. You may find grants that are available for licensing, trade show attendance, educational classes, etc. Many are not grants at all, but contests which are random, or voted on by a membership so they become more of a popularity contest.

2. Government Grants. These can happen at all levels (city, state, and federal), and in several ways. They are highly specific, and so hotly competitive that it is very difficult to get one (except the smaller specific task grants), because you will be competing with people who are paying professional grant writers to make them look good (real grant writers, not scammers). Some states have programs to assist business owners and entrepreneurs get federal grants (SBIR, and other federal funding).

Government Grants are never for business operational expenses. They are for such things as:

  • Developing a technology concept
  • Enhancing rural business potentials
  • Increasing rural communications
  • Revitalizing inner city infrastructure or business potentials
  • Providing opportunities for minorities or economically challenged population groups
  • Trade Show grants through a state agency
  • Business Incubator programs (though these have a lot to do with who you know)
  • Other purposes which go beyond a single business

It states in the grant applications that the funds must be used in a certain way, and that it cannot be used for operational expenses. You CAN pay yourself, as a cost of developing whatever it is that the grant is for.

We would have qualified for a Rural Technology grant through the Phase 1 SBIR program. For that, you must have a concept that has a chance of making a significant difference to both your own community, and other communities. We had a concept for developing a technology educational curriculum, which would have qualified. In the end though, we decided not to apply for a grant.

In Wyoming, there is a Phase 0 program. You can apply for a $5000 preparedness grant, where you present your concept to the Phase 0 board, they judge whether it might have a good chance of being awarded the Phase 1 federal grant. If you get the Phase 0 grant, it pays for help in assembling your advisory board, and for assistance in writing the Phase 1 grant.

The Phase 1 grant is awarded only once a year, in an environment of competition that is increasingly difficult (there is a lot of pressure currently to open the Phase 1 grant to larger businesses, which will effectively KILL the chances of microbusinesses to compete for the grants). There are a thousand applicants for every award given as it is. The awards can be quite large, but you pay a heavy price for them.

You must assemble an advisory board, with proper educational credentials. They look very heavily at educational qualifications, and experience. The grant must be written with documentation of the concept, how it will benefit your community and other communities, a complete plan for developing the concept, and for making the concept realize its potential. Dollars and cents must be documented and calculated for both development expenses, and potential returns and impact. You must also document your experience, credibility, credit rating, and other aspects to validate your personal eligibility. The whole concept has to be researched, considered and planned extremely well, and validated by your advisory board.

This kind of grant is very difficult to get, no matter how good your idea. This is one reason we decided NOT to do it.

We would have spent probably two weeks of hard work to get the Phase 0 grant, IF we got it. We would have spent that time whether we got it or not, and the work would have interrupted our existing business.

To get the Phase 1 grant, would have taken several months of my time - and then I'd have had to do it on their schedule. It was three months until the deadline for the Phase 1 that year, and if I missed it, it would be another year before they were awarded again, then another 6 months to 1 year before any funding actually arrived. My concept was time sensitive. I did not want to have to do it on someone else's timetable, or did I want to hang my chances for success on someone else's decisions. I didn't want the grant teams to have yes or no power over MY progress!

It seemed that if I spent the time that it would take to have a CHANCE at getting a grant, that I could have actually accomplished a good deal of the goal during that same time. It felt a lot like gambling - spending all that time and effort on a long shot, when I could be working on a sure thing instead!

I find it interesting that after making the decision NOT to pursue a grant, things began to fall into place for us to develop our concept in a different way. It is slower, and it has to be worked in around the rest of our business, but it is happening in a way that is giving us experience and credibility as it happens. We are bootstrapping the project, and it is working - we are getting paid for it through other sources, which I could not see at the time.

There is one more thing worth saying. If you choose to apply for a grant, it is important to understand that grants are usually awarded based on VALUE. Yes, you have to get your ducks in a row, or you won't even be considered. But beyond that, the winners typically are able to show value beyond themselves.

If you qualify for a grant, and can demonstrate that your project will better the lives of more than just yourself, then you have a better chance of getting it. How will it impact the community, who will it help besides yourself? Grant awarders like "causes". They like to help solve large problems - poverty, racial inequality, rural stagnation, etc. So how does your project benefit others? If you fail to show that, in a persuasive way, you'll lose even if you get everything else right.

Our application and screening process here is simpler than most. We've tried to keep it that way, while still gathering enough evidence to let us know that we are backing a winner. We are just like every other grant awarder - we want to ensure that we award a grant that has the ability to change more lives than just one. If an individual successfully builds a business around the assets that our grant provides, then it WILL impact many people for good. If they are awarded the grant, and do nothing with the asset they've been given, then they have harmed others, rather than helping them. We do this to make the world a better place, not to give a handout to someone who does not want to do any more than ask for handouts. That may sound harsh - but every grant program considers such things.

Documentation is the price you pay to get someone else to fund your dream, no matter how they fund it.

Grants aren't for everyone. And there is competition for every one. But even if you don't win the full award, you'll learn something from the process. And if you decide to just do it other ways on your own time table, as we did, then you'll learn to build on your own determination. Either way, you come out better.

 
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