When you need money to establish a new business or grow your existing business, you might consider applying for a corporate grant. With investments that others make in your business, you need to hand over a portion of your company to those investors. If you take out loans, you’re responsible for paying off your loans and any interest that accumulates. Grants essentially act as free money that you can use to pay for overhead costs and other expenses. Corporations give these grants to business owners every year.
Who Gives These Grants?
A corporate grant is a type of grant that comes directly from a major corporation. Many of these corporations set aside money at the beginning of the fiscal year and award grants to those they deem worthy. Though you might think that only smaller or lesser known companies hand out grants, there are some big names in the mix. Wells Fargo, Target and and Tyson Foods are just some of the corporations that award grants to small business owners every year.
Why Do Corporations Hand Out Grants?
One reason companies award grants is because of a corporate social responsibility program, according to Grantspace. This type of program, often called a CSR, lets the general public know that the company cares about giving back to the community and those in need. Some have independent programs that they use to award money, but others fun their own charitable foundations. With a charitable foundation, the company can write off a portion of the grants it awards or all of those grants. This can help the company save significantly on taxes. Corporations can also use grants as a way to improve their reputations.
How Much Can You Get?
The amount that you can get in the form of a grant depends on several key factors, including the size of the corporation and the amount that you need. Some companies use smaller grants that range in size from $500 to a few thousand dollars. Those grants can pay for some basic supplies or some of your operating costs. Other corporations offer much larger grants that can reach $50,000 or more. Only those who own larger companies and have higher operating costs qualify for these grants.
Finding Grants
To find a corporate grant for your business, you can check with corporations in your own city or state and look online. You usually need to complete an application packet or write a grant proposal. Both will require a business plan too. The business plan should show the products you sell or services you offer, the amount of money you spent on your business, all of your operating costs and the amount of money you need for future success. Some corporations also require that you show proof of ownership to ensure that you own the company. You may also need to submit a form or document that shows how you will use the grant money that you receive.
Related Resource: What is an Informal Investor?
Starting even the smallest of companies can cost much more than you ever expected. You need to pay for a place to work, the supplies that you need and even equipment. Corporations of all sizes offer grants to help small business owners get their companies off the ground. A corporate grant can range in size from a few hundred dollars to more than $50,000.
