Business Federal Grants – Purpose and benefits

Business federal grants are forms of gifts that are given to individuals by the federal
government. It is a certain obligation that is barred as part of the guarantor.

Hence applying and getting a federal grant will be helpful, but at the same time the applicant will
have to fulfill certain objectives. Majority of the business federal grants are awarded to
organizations, institutions, state governments for specific projects concentrating on specific
sectors or specific community of the population. Some of the examples include funding for an
irrigation project, a real estate project, to attract a new business in an area, etc.

Some of the types of business federal grants include Formula grants, Project grants, Earmark
grants, Categorical grants & Block grants. Formula grants are provided as per the law. This
includes some allocations to state and local government in accordance with the law or the
municipal council. Examples of this type include employment training, soft skill training to
individuals, community development, etc. Project grants are popular for known periods
depending upon the complexity of the project. They also include scholarships, training and
research grants, planning & evaluation grants, survey grants, technical grants, social services,
arts, healthcare, & real estate grants. Categorical grants are spent only for specific purposes
defined by law. Block grants include that are not applied to specific purposes and grant seeker
applies to state government for these funds. Examples include development for block grant and
alcohol and mental health services, etc. Earmark grants are provided by the U.S. Congress.

Apart from these there also includes grants which does not involve case which are classified as
non financial assistance. These include exchange, sale or donation of assets, property,
commodities and other goods including buildings, land, etc. Use of property, equipment, and
facilities form the federal government are also provided as part of non financial business federal
grants. Recipients of business federal grants include state and local governments, which also
include territories and possessions across the commonwealth of Puerto Rico, Virgin Islands,
Northern Marina Islands, American Samoa, and the Pacific Islands. Apart from these, nonprofit
organizations, private individuals like native Americans, refuges, aliens, senior citizens,
physically challenged, health & educational professionals, real estate builders and contractors,
low income individuals, etc. However federally funded organizations like research centers are
excluded from business federal grants.

Sometimes nonprofit organizations serve as sponsors who wish for financial assistance.
Individuals can work through a sponsoring nonprofit organization but cannot directly apply for
it. There are several business federal grants including grants to communities to help start up
small businesses and also to expand further, grants to develop new technologies for businesses,
grants to publish books for a particular audience, grants to provide employment for people with
disabilities, & grants for minority businesses to enter new markets. Business federal grants
enable each and every business in every sector to grow and expand & form the pillar in times of
financial windfall like recession, depression, etc
 Business Federal Grants – Key opportunities for small businesses for growth and expansion

Federal government allocates grants to assist in businesses for individuals who wish to set up a
new venture or upgrade technology for existing business. Both, state and the federal government
offer assistance in the form of money to prosper one’s business. Federal government has
allocated several billion dollars for business federal grants, domestic expansions, new ventures,
overseas expansion, inventions, research, medical and health care, etc. These are helpful not only
for grants but also for information and loans as well. For instance, if one wishes to set up a retail
farm or even poultry the techniques that must be cultivated and developed will be assisted by the
federal government. They constitute a panel of experts in that domain who can assist in helping
to grow and expand further. If one needs help in exporting the domestic products produced by
business in home country then federal government assists individuals in such cases to expand
beyond boundaries and thus aid small and medium businesses to achieve above average returns
and grow in the globalized world. Any type of real time information can be obtained from the
federal government.

Due to competition for grants, achieving business federal grants has become difficult. Seeking
business federal grant requires considerable amount of time and potential in order to get
convinced as to why the grant is applied for. Very few individuals have the ability to prepare to
and apply for grants which are reasonable and for genuine purposes. In case if the grant recipient
fails to execute the objectives while applying, the individual can face legal action which can lead
to imprisonment and fine since its direct misuse of public funds. All the granted funds by the
federal government must be spent else the remaining money will go back to the federal
government. Detailed program objectives must be adhered strictly as per the schedule and
exactly as specified in the grant application. Any changes mid way must be approved by the
federal government. All projects for which the grant has been applied must be completed in time,
failure to which will lead in penalty and withdrawal of funds.

Some of the major agencies for business federal grants include: Department of Health and
Human Services (HHS) GrantsNet, Department of Housing and Urban Development (HUD),
Department of Education Grants and Contracts Information, Environmental Protection Agency
(EPA), Federal Emergency Management Administration (FEMA), National Institutes of Health
(NIH), etc. Apart from this include grants for housing loans which are low interest from FEMA,
Californian administered IFG grants unemployment assistance for special disaster and also
variety of other federal & volunteer agencies.

Hence business federal grants form the pillar in most of the businesses that are in dire financial
or non financial need. There are also challenges that are faced in application for business federal
grants such as time and potential for the application process.
 Business federal grants – Advantages & opportunities for small & medium enterprises

Federal business grants specifically focus on small and medium businesses to help them grow
and expand and also support in times of financial windfalls. Small and medium businesses form
the backbone of nation’s economy and help in the significant contribution of Gross Domestic
Product.

Federal business grants helps not only to finance starting up a small businesses but also in the
continuation stages like technology repair, international expansion, business advices, etc.
however, everyone is not qualified to avail a business grant. Grants are made available only to
specific community groups or specific industries of businesses. Specific guidelines are made use
of before making use of federal business grants. Applying for a government grant takes
considerable processes and formalities and hence, time consuming. This is the biggest drawback
of applying for federal business grants.

List of grants from several government agencies can be obtained from a catalogue of Federal
Domestic Assistance (CFDA) free of cost. Grants come in different stimulus likewise rural
businesses, business development, lease of equipment and financing and others. One should find
a business grant program that is best suited for that business. Then one should be ready with the
business plan with all the conditions fulfilled which are specified for that particular grant in order
to deserve the funding assistance. A good business plan can be made effective by highlighting
the nature of the business, history of the business, efforts undergone in bringing the business to a
particular stage, etc. However one has to convince as to how the business will be benefitted if
there is additional funding in order to fulfill the panel of judges of the federal government. It is
also recommended to seek professional assistance form a financial consultant for a speedy
delivery of the presentation and to make it more practicable. Federal Grants are available in
various domains including agriculture, business and commerce, arts, energy, employment &
human resource training, food, healthcare, science & technology, humanities, legal services,
natural resources, transportation, disaster management and emergency management, etc. other
incentives for small businesses apart from grants include tax breaks, subsidized rates on small
business administration loans and some incubator programs.

Small business grants will be awarded to companies that meet certain standards and guidelines of
the US small business administration. The most common adopted standards are:

 500 employees especially for mining and manufacturing sectors

Eligibility for various businesses are found from the eligibility tutorial obtained from small and
medium business administration governed by the federal government.
 Business Federal Grants – structural steps in achieving the award for small businesses

US federal government awards certain portion of the federal business grants to open up small
businesses, carry out business expansion plans for organizations which are in financial need.
However, Federal Reserve does not award the grants to private for profit small businesses unless
it is 501C3 nonprofit organization that is meant for charitable purposes and tax exempt. The
United States small business agency is an agency of the Federal Reserve which was created in
1953 to help small and medium businesses right from start ups to growth & expansion. Its serves
mainly to start, build & grow businesses. The small and medium business administration agency
seves people not only in the mainland if United States but also in Samoa, Pacific Islands, Virgin
islands & Guam, Puerto Rico & Hawaii. One can access small business administration website at
www.sba.gov.

Various types of business federal grants awarded by Federal Reserve can be obtained from
www.federalgrants.com SBA caters for research and up gradation for high technology
companies. Small business innovation research program is an innovative program that assists in
start ups of small businesses, upgrades technology in order to achieve above average revenues
for its businesses. The small business transfer program is another incentive program which
awards to small businesses which partners with other nonprofit organizations catered to research
of commercialization of technology and technological products.

Some of the major programs carried out by small and medium business administration to help
America grow in terms of small and medium businesses are as follows:

Basic loan program which are the proceeds of a loan that can be used for capital expenditure,
machinery and its parts, furniture and other administrative expenses, construction, renovation,
etc. maturity of the basic loan program is 25 years for fixed assets and 10 years for working
capital.

504 loan program for financing small businesses to acquire real estate, machinery or machine
parts or equipment for administration/production, etc on a fixed rate basis.

Microloan loan program target nonprofit childcare centers and small businesses which need
small scale financing which includes for startup and expansion. Short term loans are provided up
to $ 35,000 for inventories, capital, machinery and equipment. However, these grants cannot be
used to pay off existing debts or buy any real estate which means that the loans are not
guaranteed by the small and medium business administration.
Loan prequalification allows grant applicants to have a loan of up to $ 250,000 sanctioned by the
small and medium business administration.

Thus with such important schemes there is lot of scope in America in any sector and considering
the fact that assistance is provided even in adverse situations the market for small and medium
businesses have become saturated. Hence come conditions for must be set up to cut off for the
application number for business grants. Government organizations which issue business federal
grants include state and local governments, city or township governments, special district
governments, & Native American tribal governments.