Guest post: How to maximise your chances of getting government funding for your business

US-PDGOV

By Andrew

Banks and other private lenders are not the only parties to ask for funding assistance if you need financing for your business. There are various state and federal programs that are providing and managing grants or funding allotted to troubled or needy businesses. There are specific government agencies or institutions that are tasked to offer and provide such grants.

Government funding is just out there, waiting for the right business applicants that need financing. But the financial assistance will not be easily and quickly provided to just about any company. The government funding agency has to make sure the money will not be put to waste. It may have its sets of requirements and standards to screen and approve/disapprove funding applications. How can your business maximise its chances of getting funding from any government granting agency?

•   Write and put up a well defined and clear mission statement for the business. Some people think the mission statement is just for formality but government funding agencies and institutions look at it as a necessary factor especially when granting and awarding government funding. The statement should effectively convey the essence and goals of the business.

•   Write a good grant letter. It should effectively persuade specific government agencies to consider providing or awarding grant to the company. Some business owners hire experienced grant writers to write the grant letter, which is necessary to complete the grant application or proposal.

•   Set clearly defined and ideal outcomes for specified projects. The business may be seeking grant funding for particular projects. It should present a projection of how those projects will do well and how those can bring about desired outcomes. Government funding agencies also need to make sure the money they provide to businesses will be returned on or before the specified duration.

•      The financial systems of the company should be in place to effectively project, show, and track how the potential funding will be spent. Government funding agencies need to make sure there is a sound financial system. This is necessary to protect the funds granted to businesses. Those may decline or refuse a grant application if the financial system of the company is not in good state. 

•    There should be programs that will ensure overall sustainability of the business. Community projects should also be well presented and should clearly give an idea how those will be used for the advancement not just of the business but also of stakeholders and the communities. Government agencies want to be sure their funding will be well and sensibly spent.

•     There should be specific actions or measures to recognise and/or honour grant donors. This is not just for flattering government funding providers but to give them what is due to be accorded to them following the grant. 

•       The business should ensure that it has independent contractors or specific employees who will manage the grant. Those should also be tasked to complete required reports that are required or mandated on a regular basis by government agencies or foundations. 

Andrew has been working in the finance industry for several years with a specialty in business finance. Andrew has a BA in Business Administration and has written numerous articles in prominent finance blogs.