Government grants are simply meant a quantity of money i.e financial assistance, which is given by a government, foundation, and an organization or person for a specific purpose. Remember, this is not like a loan, so you don’t have to pay it back. In some cases, the receivers of study grants who abandoned their study should have to pay back the money. The financial assistance may be for a student to study or for a team to carry out their research.
The government might also award grants for community projects, home insulation, or setting up their businesses. Government grants are important allotments from the US government awarded to certain individuals who are eligible and applied. Normally, these government grants are given to the local, state, and federal levels of the government. If you are eligible for the government grant, you will need to simply apply which you can do on www.governmentgrants.us.
It specifies your current life status, particularly aspects that can be supported with or that set you apart in some way, is there anything that will increase your chance of being awarded then yes your income that should be below than national average or a divorced marital status, a single parent with multiple dependents, a victim of abuse, a cancer patient and lots of debt; these are the examples that helps to qualify for being awarded a grant from the government.
Why the Government Grants are important?
Government grants are important because as we know due to lack of funding many small businesses and startups suffered from tragic problems. Approximately, 79% of new companies fail because they’re starting out with too little amount of money. Additionally, around 77% of small business owners rely on a personal small amount of savings in the first few months. And if you’re also thinking of starting a business or want to expand your existing business, then consider using government grants.
The biggest advantage to consider or use government grants is that you don’t have to pay back these government grants money. It’s free money for your startups or you can say for your business. The funds are given to individuals, charities, companies and educational institutions, and more. Government grants are widely available. All you need to do is simply check out the site that is grants.gov, SBIR.gov, and other similar websites that help you to get government grants.
Additionally, funding is available in a wide range of categories, from health to science, commerce, and education anyone who is eligible can be a recipient. You can use these government grants to expand your business and generate more revenue. And there is no limit to the number of government grants for which you can apply. Remember, before sending your application, take time to learn about government grants’ advantages and disadvantages. Do check the eligibility criteria requirements, create a piece of detailed information about your business plan and apply to it.
Beware that most of the government grants are for the short term. When you run out of money, you have to find new government grants or can say new funding sources. That’s why it is important to use money wisely and make the most out of your government grants. If you are willing to invest the effort and time that is needed to secure funding, go for it. Just make sure that you are already prepared to be rejected more than once. Because it doesn’t mean that when you find government grants that are suitable for you that you are gonna qualify, no it is a little bit difficult to get the government grants. But it doesn’t mean you simply give up, try hard until you reach your goals.
Types of Government Grants Available?
There are many types of government grants available such as for education for a project for research for housing assistance etc. lets us discuss the types of government grants that are available. Remember, you are not going to get all types of grants. It depends on you what you need, what is your purpose, and which government grants are suitable for you for whom you are going to be qualified.
1. Categorical grants
Categorical grants are also known as conditional grants. These grants are provided by the United States Congress. They are the main source of federal aid to local and state governments and they can be issued to the specific category of states and their local funding such as education and roads.
These types of grants may be spent only for the defined purposes and recipients often must match a portion of the federal funds. About 90% of federal aid dollars are spent on categorical grants and 33% of categorical grants are considered to be formula grants. Let’s know something more about project grants and formula grants that lie in the categorical grants. The examples of the categorical grants are the head start program and magnet schools assistance programs.
- Formula grants provide funds as dictated by law. The examples of formula grants are aid to families with dependent children and the job training partnership act.
- Project grants, these grants are given by the government to fund research projects, such as a research project for medical purposes. An individual must have to fulfill the qualifications criteria before applying for such a government grant. The normal duration for project grants is about three years.
2. Block grants
It is simply large grants that are provided by the federal government to local or state governments for use in a general-purpose. And it is a fixed pot of money; this contrasts with an entitlement structure. Anyone eligible for benefits or services can receive them. After that, funding increases automatically and immediately to respond to increased needs due to any economic downturns and a natural disaster.
Some policymakers also call their block grants “opportunity grants” or even “merged funding streams”. Let’s understand the block grants through some examples:
- community development block grants
- alcohol, abuse, drug, and mental health services block grants
- National Institute of science for bioscience research
- Local law enforcement block grants
- National science foundation for physical science research.
These grants are specified in appropriations of US Congress. Because of the heavy involvement of political lobbyists these grants are not controversial and competitive. In FY 1996 appropriations, the congressional research service found 3,023 earmarks that are a total of $19.5 billion, while in FY 2006 it found 12,852 earmarks that is $64 billion. There are over 900 grants programs available that are offered by the federal grant-making agencies. These grants are in 20 categories. This 20 category is listed below.
- Food & nutrition
- Natural resources
- Science and technology
- Social services and income security
- Information and statistics
- Law, justice, and legal services
- Environmental quality
- Disaster prevention and relief
- Consumer protection
- Business and commerce
- Employment, labor, and training
- Education regional development
- Consumer protection.
Government grants are the better option to achieve your goals. Many types of grants are already available to explore, find you a suitable government grant that fulfills your needs. After that research for it, get information and get them.
Looking for government grants for small business startups, read along with the article about government grants for businesses.