A small business grant is typically a lump-sum amount that is given (or “granted”) by an organization to businesses that meet specific criteria.
In this resource, we share information to help you prepare your application, from eligibility and paperwork requirements to writing tips and staying safe online.
Do you meet the eligibility requirements?
Before you apply for a small business grant, make sure your business meets the requirements to be eligible to receive the grant. Many grants are aimed at businesses with a certain number of employees, in a specific location, with a specific identity group, or in a certain revenue bracket. Save yourself time by first making sure you are eligible.
Read the small print
Before you take any action on a grant application, it’s important to read the small print. Look for “terms and conditions” on the grant application website. If you aren’t sure, start compiling a list of questions you would want to ask, and reach out to the grant organizers before you apply.
Example questions:
- Is there an application fee?
- Is a paid membership required to join the organization and apply for the grant? If so, how much will that membership cost every year? What is the benefit of the membership? If not, can it be canceled?
- Will you be required to match the grant funding by contributing a certain portion of the award amount? Is the source of the funding a local government organization, a nonprofit or charitable organization, or a large corporation?
- Many grant programs include information about recipients on their websites. Will my name, image, and business brand (if at all) be used if successful? How, where, and for how long? This could be a great opportunity to promote your brand, but you should always be aware of what you are agreeing to by submitting your application.
Don’t forget to check the deadline for applications.
Gather your paperwork
Read or print the application form and review the submission guidelines thoroughly to see what documents you are required to provide. Most grant applications list what is required before you start your application so you can have everything in order when you are ready to apply. Some grants make it very easy, while others require additional time since you’ll need to submit supporting paperwork or evidence to prove you are eligible to receive the grant.
If you’re not sure what paperwork is required, contact someone at the organization who distributes the grant to confirm what you need. That way, you can avoid pausing your application halfway through.
The vast majority of grant application forms are online, so make sure you have a strong internet connection and copies of your documents on your computer/hard drive so you can upload them.
Common documents that are requested include:
- Cover letter. Cover letters typically follow the following layout:
- The date
- Your contact information, i.e., your (business) street address
- Start the letter with Dear [name of a contact at the organization, if known] or To whom it may concern [use this if you aren’t sure who to address the letter to]
- Two to three paragraphs including some information about your business (e.g., what you do/sell, why you started the business); the name/details of the grant you are applying for, and your proposal.
- Sign off: ‘Thank you’ or ‘Thank you for your consideration’
- Your full name and contact details, e.g., phone number.
- Information about how you will use the funds
- Evidence that your business is in a specific location (e.g., a rural business)
- Business plan
- Bank statements
Writing your application
As part of your application, you may have to provide some background information about your business in writing. This may include why you started the business, what your plans are for the future, how you will spend the grant money if you are successful, why you should be selected to receive the grant, and more. Review the objectives of the grant and make sure you reference how you will help meet those objectives in your application. Even if you aren’t asked for this information, having a draft blurb about your business will help you write cover letters.
Find out how much you are expected to write (specifically, how many words), as you might only need to provide anywhere from a paragraph or two up to a full page or more. Write the way you speak, use short sentences, and keep things simple. Read it out loud to make sure it flows, and ask someone else who is familiar with your business to read your application too.
Pro tip: Different grants may ask similar questions. Save what you write for each application (e.g., your cover letter and how you will use the funds) in an easy-to-access format like Microsoft Word or Google Docs, in case you can reuse or rewrite, so you’ll have somewhere to start from.
What to expect once you’ve submitted your application
Each grant has a different review process, and the length of time the process takes will vary anywhere from weeks to months. Check the details, as typically the review process is explained on each individual grant’s website. Once you’ve successfully completed your application, you may receive an email or phone call confirming that your grant has been received and is being reviewed. You may also be invited for an interview, either over the phone or in person.
If you aren’t successful in your application, ask the organization for feedback so you can understand why your business wasn’t suitable or if there is an opportunity to apply again.
Pro tip: Save copies of the files you used in your application so you can easily access them when preparing for an interview.
Tips to stay safe online
Unfortunately, there are bad actors out there looking for opportunities to scam individuals and business owners. Here are some tips to help you stay vigilant:
- Do some research to check if the grant is provided by a well-known, established organization.
- Never share access to your bank account, passwords, or two-factor authentication codes with anyone else.
- If you are asked to provide bank statements, make sure you understand why and that you redact bank account numbers from bank statements.
- Read or ask for testimonials from previous grant recipients. Look to contact or verify the grant details with previous recipients, or learn about their businesses online.
- Make sure the website or application portal is secure. You can usually check this with the help of your browser, such as through Google Chrome’s security verification tools.
Ready to apply for a grant? Read our list of grants that are currently available for businesses in the U.S.
Helen is a Seller Community Manager at Square and is the editor of the Seller Community Blog. She writes about small businesses and the owners and entrepreneurs that are a part of the Seller Community.
Please note that this article is intended for educational purposes only and should not be deemed to be or used as legal, employment, or health and safety advice. For guidance or advice specific to your business, consult with a qualified professional.
