While business grants offer a wide array of funding possibilities for your company, there are a few drawbacks that can arise when applying for them.
First, the right grant for your business might not be available when you need it. A government grant for small business is offered in-line with specific government initiatives. If your company’s mission doesn’t align with the government’s current focus, you might not be able to find the funding you need. Similarly, private grants are typically offered only at specific points of the year — often annually.
Second, you might not be eligible for a particular grant based on what amounts to a mere technicality. For example, some state-issued grants are offered to out-of-state companies, as long as a certain percentage of their operations are done in-state. If your numbers fail to meet these criteria by the smallest amount, your company will be ineligible.
Finally, because grants are awarded only to one or a handful of organizations, there’s always the possibility that a company could come along and edge your organization out of the running.
If you haven’t obtained a corporate or government grant for your small business, there are other options for securing capital for your business. You could consider applying for an SBA loan, microloan or other small business financing options.