Types of Grants for Small Businesses

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A grant is a sum of money given to businesses to help in the enterprise’s growth. The grants are issued by governments, foundations, trusts, and corporations for free. The funding doesn’t have to be paid back and doesn’t have any accrued interests. 

However, the process of acquiring a business grant is not straightforward, and most businesses don’t qualify. In some instances, your business might not be aware of any existing grants in Australia. For instance, most enterprises are not aware of the existence of the EMDG grant in Australia.

Why is it difficult to acquire business grants?

  • They are hard to locate-there are a few websites that update the available grants in the country. Most websites are paid services, or some are poorly updated. Many grants are often outdated when you go to check for the recent grants available.
  • Are specific-most grants are specific and target narrow specifications of business categories. Some grants are specific to certain industries and locations. And most grants providers dictate how you can use the money. They are guidelines that you need to follow in using the grant, or you can risk paying back the money granted. 
  • Fierce competition-there are many businesses that want to get access to the various grants making access to the funds very hard.

The business grants are classified into various categories, such as:

Technological grant

The tech grant is designed to assist businesses to work efficiently through the use of modern technology. The most common tech grants are the small business technology transfer program (STTR) and small business innovation research program (SBIR). The funds help small businesses and large enterprises conduct research and develop various technology strategies that can positively impact the economy.

Agricultural grant

The Australian government has allocated a lumpsum amount of money to help small scale and large-scale farmers to overcome the challenges in the agriculture sector. The funds are granted to allow the agri-enterprises to buy or incorporate renewable energy systems in rural areas. Other funds can be used to educate low-income communities on the best farming practices. The main role of agricultural grants is to advance the sector and enhance a country that is sustainable in terms of food.

Health Grants

Health grants are granted by the Australian government or other corporations to help develop health projects that can improve the health care system. Most of the eligible people for the health grants include; health researcher, technology developer, and practitioner.  

The grants are strictly for the use of health purposes failure to that the government or corporation can withdraw the funds. Most fund donors follow up on using the funds to ensure the business uses them for the right purpose.

Bottom Line

There are different types of business grants that are accessible to small and large enterprises. Accessing those funds is quite difficult, and in most instances, a business needs an intermediary organization to help in accessing the funds. Upon getting the funds, you need to use them as per the agreed guidelines to avoid facing certain implications.