Small business grants can provide essential start-up or running capital to a new entrepreneur. However, the benefits of a business grant do not stop there. Business grants can assist new entrepreneurs to expand their business plans or may even attract new clients or customers merely because of its receipt.
At their most basic, small business grants provide new business owners with essential capital to begin a business. Because a grant does not need to be repaid, small business grants come with no debt, making them even more desirable. This capital can be used to start a new business, or expand a business to include new products or services. While application of a grant requires a statement of what the grant will be used for, there is often no requirement that the funds actually will be used in that manner.
Provides Access to Lenders
Often, those businesses that receive a small business grant will have their information provided to local lenders. Additionally, because the company has previously been approved by a government, group or another organization offering the grant, these lenders may offer funds at lower interest rates. Sometimes, even if a company was not awarded a grant, lenders will offer loans at lower rates than a company would receive if the loan was solicited by the company.
Provides Access to Consultants
Grants sometimes become attached with requirements to permit consultant involvement in the business. These consultants will keep an eye on the business to make sure that it is using the funds properly or according to the guidelines set in the application. However, these consultants will also offer advice to the business on how to expand, make services or operations more efficient or how to attract more customers. As these consultants will come at no cost to the business, receiving their advice is invaluable.
Provides a Marketing or Public Relations Tool
Advertising that a company has been awarded a grant can be extremely attractive to the public and can be a great marketing and public relations tool. Customers and other companies hearing that your company has been awarded the grant, particularly when it comes from the government, will consider your company to be stable and likely to succeed. If a grant-issuing authority has found your company worthwhile to invest in, that means that you are on the right track with your business. Announcing or otherwise making it known that you have been awarded a small business grant can attract new customers, funding and provide greater standing in the community.
Provides Access to Other Grants
Recipients of a small business grant are not prohibited from applying or receiving subsequent or simultaneous grants. Oftentimes, passing the grant reviewing process for one grant can make your company more likely to pass the review for another grant. Therefore, it is possible that you might find yourself the recipient of more than one grant in the same or subsequent years.
Provides Access to Leadership Positions
Being awarded a grant shows that you are a serious business owner and
that your business is anticipated to succeed. As other grant awarding
groups and business organizations become aware of your receipt of the
award, they may invite you to join their groups or even serve on their
boards. Being awarded a grant can instantaneously make you one of the
community leaders of business knowledge.