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<h1 class="title_blue">Business Funding</h1>
<h3>I. Funding Options for Businesses</h3>
<p>There is a great deal of funding
available in both the public and private sectors for both businesses
and non-profit organizations. Whether you’re a start up business,
one looking to expand, or one looking to go into a different direction,
there are billions of dollars available to you in several types of funding
options. Each of these options affects your business in different
ways. This section explores these options to help you to determine
your best course of action. <br></p>
<h4>a). Grants</h4>
<p>Grants are donations of money
that are given to businesses to meet an existing societal need that
can be fulfilled by the recipient of the grant, or grantee. These
needs are described in the funding source’s, or grantor’s, Request
for Proposal (RFP). While the Federal Government provides a considerable
share of funding for business enterprises, state and local governments
also support the business sector. <br></p>
<p>While there is some truth to
the statement that grants are “free,” basically because they do
not need to be repaid, you are expected to provide a product or service
in return for the monies given to you. Additionally, grants do
not appear as “debts” on your credit history. <br>
</p>
<p>Business grants are awarded
for projects that provide jobs, housing, community development, technological
advancement, and environmental undertakings and for other causes advocated
by the funding source. <br></p>
<p><b>Types of Grants</b> <br>
</p>
<p>The first step in your grant
research process for business funding is to determine the type of grant
that matches your specifications.</p>
<ul>
<li><b>Start-up Grants</b>
provide initial support for your project. These grants, also known
as “seed money” or “program development” grants, support new
projects and help programs get off the ground. Start-up grants
can attract additional funding by showing other possible funders that
you already have a base of support. Start-up grantors expect additional
funding for your project to be derived from other sources.</li>
<li><b>Project Grants </b>
provide funding for<b> </b>specific projects for fixed periods of time.
Grants of this type include those for training, research, evaluation,
planning, construction, or other specified purposes. BBIR and
STTR grants as discussed in Chapter One are examples of project grants.</li>
<li><b>Formula Grants </b>
are based on mathematical or statistical formulas that are associated
with legal requirements. Grantseekers must ensure that their organization
meets the statistical formula requirements of the grantor. For
example, the statistical requirement can be income level, as it pertains
to eligibility for such opportunities as affordable housing and first-time
home buyer opportunities. </li>
<li><b>Discretionary
Grants </b>are those in which the funding source selects the grant proposal
that best matches its requirements and criteria, and has convinced the
officials of the funding source that it has found the right match.
These grants are discretionary and highly competitive, and most of the
grants discussed herein are of this type.</li>
<li><b>Research Grants </b>
support research or study on a particular issue. Grantors often
award them through sponsoring institutions such as universities and
hospitals (See sponsorships and affiliations described later in this
Chapter). Individual researchers, such as university faculty members,
rely on their professional affiliation or sponsorship to provide facilities
and pay for research assistants while the professors conduct their research.
Federal agencies that award such grants are the National Institute of
Health (NIH), U.S. Department of Agriculture (USDA), and the National
Science Foundation (NSF).</li>
<li><b>Specified-Use
Grants </b>are intended to support a particular activity for specific
uses, and grant recipients must engage in only the specified activity
in order to receive the grant payments. Most of the grants discussed
herein are specified-use grants.</li>
<li><b>Unrestricted
Use Grants </b>place no restrictions on how the recipients of the grant
spend the funds.</li>
</ul>
<br>
<p><b>Federal Government Agency
Grants </b> <br></p>
<p>While the Small Business Administration
(SBA) does offer some grant programs, it generally does not support
grant requests. Those that they do support are designed to expand
and enhance organizations that provide small business management, technical,
or financial assistance. They support non-profit organizations, intermediary
lending institutions, and state and local governments. <a href="http://www.sba.gov/sbir/indexfast.html" target="_blank"><b><u>Federal and State Small Business
Innovative Grant Program (SBIR) and Small Business Technology Transfer
Program (STTR), </u></b></a><a href="http://www.onlinewbc.gov/grantsnotice.html" target="_blank"><b><u>Women's
Business Center Program</u></b></a><b>
and </b><a href="http://www.sba.gov/INV/venture.html" target="_blank"><b><u>New
Markets Venture Capital Program</u></b></a><b>
are just a few examples.</b> <br></p>
<p><b>SBIR and STTR Grant Programs </b> <br>
</p>
<p>There are government grant
programs for technology-based businesses. These are the <b>
Small Business Innovation Research (SBIR) and STTR (Small Business Technology
Transfer) Grant Programs</b>. <br></p>
<p> </p>
<p>The SBA coordinates and monitors
the technology-related SBIR and STTR programs and reports its results
to Congress, but each Federal agency participating in SBIR has the responsibility
for managing and funding its own SBIR/STTR grant programs. The SBA does
not fund, designate, or control the topics in SBIR solicitations or
awards. <br></p>
<p><b>Small Business Investment
Companies (SBIC) Program</b></p>
<p><b>Small Business Development
Companies (SBDC) Program</b> <br></p>
<p>The SBIC Program is one of
a variety of financial assistance programs offered through the SBA.
It does not invest directly in small businesses, but rather refers small
businesses to investment management funds to evaluate and invest in
promising companies.</p>
<p>The SBDC Program is designed
to deliver up-to-date counseling, training and technical assistance
in all aspects of small business management. SBDC services provide assistance
to small businesses with financial, marketing, production, organization,
engineering and technical problems, and prepare feasibility studies.
Special SBDC programs and economic development activities include international
trade assistance, technical assistance, procurement assistance, venture
capital formation, and rural development. SBDC also makes special efforts
to reach<i> minority members </i>of socially and economically disadvantaged
groups, veterans, women and the disabled by providing them with assistance
in applying for SBIR grant funding. <br></p>
<p>SBA offers a listing of successful
SBIC-backed companies at <a href="http://www.sba.gov/INV/successstories.html" target="_blank"><u>www.sba.gov/INV/<WBR>successstories.html</u></a>. See also <i>Success Stories</i> in
this Course and our weekly newsletter. <br></p>
<p>The SBA can also help you determine
whether SBIC financing is right for<b> </b>
your business and, if so, who in the SBIC community might be willing
to entertain an investment for your cause. To learn more, visit the
SBA’s<i> Office of Small Business Development Centers</i> at <a href="http://www.sba.gov/sbdc/sbdcp.html" target="_blank"><u>http://www.sba.gov/sbdc/sbdcp.<WBR>html</u></a>. It is part of the SBA’s Entrepreneurial
Development network of training and counseling services, a <i>cooperative
effort</i><b><i> </i></b>between the private sector, educational community
and federal, state, and<i> local governments</i> that provides small
businesses with management and technical assistance. </p>
<p>There is at least one Lead
Small Business Development Center (SBDC) in every state. The lead organization
sponsors the SBDC and manages the program with a network of more than
1100 service locations and coordinates program services offered to small
businesses through a network of sub-centers and satellite locations
in each state. Sub-centers are located at colleges, universities, community
colleges, vocational schools, chambers of commerce and economic development
corporations throughout the country. <br>
<br>
SBDC assistance is tailored to the local community needs of small business
clients. Each Center develops services in cooperation with local SBA
district offices to ensure statewide coordination with other available
resources. Each Center has a director, staff members, and volunteers.
Qualified individuals recruited from professional and trade associations,
the legal and banking community, academia, chambers of commerce and
SCORE (Service Corps of Retired Executives) donate their services. SBDCs
also use paid consultants, consulting engineers and testing labs from
the private sector to help clients who need specialized expertise.<b> </b> <br>
</p>
<p><b>Funding </b> <br>
<br>
The SBA provides 50 percent or less<i> </i>
of the operating funds for each state SBDC. One or more sponsors provide
the rest, usually in the form of matching fund contributions by states,
private sector foundations and grants, chambers of commerce, state-chartered
economic development corporations, universities, vocational and technical
schools, community colleges, etc. <br></p>
<p><b>Eligibility</b></p>
<p> </p>
<p>Anyone interested in starting
a small business for the first time or improving or expanding an existing
small business, and who cannot afford the services of a private consultant,
is eligible for services from the SBDC. <br>
<b> <br>
Other SBA Programs </b> <br>
<br>
In addition to the SBDC Program, the SBA has various other programs
and services available. They include training and educational programs,
advisory services, publications, financial programs, and contract assistance.
The agency also offers specialized programs for women business owners,
minorities, veterans, international trade and rural development. <br>
<br>
The SBA has offices throughout the country. To find an SBDC near you
(in your state) go to <a href="http://www.sba.gov/sbdc/sbdcnear.html" target="_blank"><u>http://www.sba.gov/sbdc/<WBR>sbdcnear.html</u></a> (SBDC Locator). For the one nearest
you, consult the telephone directory under "U.S. Government",
or call the Small Business Answer Desk at 1-800-8-ASK-SBA or (202) 205-7064
(fax). For the hearing impaired, the TDD number is (202) 205-7333. <br>
</p>
<p><b>US Dept of Agriculture (USDA)</b> <br>
</p>
<p>The goal of USDA’s Rural
Development, Business and Cooperative Programs (BCP), Business Programs
(BP) is to promote business in rural America. The agency works in partnership
with the private sector and the community-based organizations to provide
financial assistance and business planning. It helps fund projects that
create or preserve quality jobs and/or promote a clean rural environment.
BP’s financial resources are often leveraged with those of other public
and private lenders to meet business and credit needs in under-served
rural areas. Recipients of these programs may include individuals, corporations,
partnerships, cooperatives, public agencies, nonprofit corporations,
Indian tribes, and private companies. For more details see the BP web
site at <a href="http://www.rurdev.usda.gov/rbs/busp/bpdir.htm" target="_blank"><u>http://www.rurdev.usda.gov/<WBR>rbs/busp/bpdir.htm</u></a> <br>
</p>
<p><b>State and Local Government
Grants </b></p>
<p>The number and variety of Federal
government grants for small business is small compared to the huge number
and scope of grants available from <i>state and local governments</i>.
Criteria for small businesses to obtain grant money vary from state
to state, though most states typically expect some form of <i>business
owner equity participation</i><b><i> </i></b>
and evidence that funding will result in a <i>clear economic or social
benefit to the local community.</i> <br></p>
<p>State and local offices are
often counterparts of federal agencies, such as Small Business Administration
(SBA), HUD (U.S. Department of Housing and Urban Development), DOE (Department
of Energy), and Department of Agriculture (USDA), or may have grant
funds available depending upon the nature of your project, the need
and the proposed solution. For example, they receive and distribute
federal money from HUD as Community Development Block Grants that can
be used for local improvements, including small business financing programs
and State SBIR/STTR programs. <i> </i>
<i> </i> <br></p>
<p>States also have their own
agencies which may combine state funding with federal agency funds,
as well as private and non-profit sectors funding sources, for business
grants. These are typically a state’s <i>Department of Commerce or
Economic Development</i>; however, the names of state agencies can also
vary. For example, West Virginia has a <i>Department of Business Development</i>.
<br></p>
<p><b>Local Small Business Grants
and Other Assistance</b> <br></p>
<p>Counties, cities and towns
may also be receptive to your grant funding proposal if you are a local
resident looking to start your own business, particularly if you identify
a local need or problem (such as creating new jobs) and a solution to
meet that specific problem or need. Some municipalities may add funding
to their budget for projects that are in the public interest or otherwise
meet local needs. The amount of money available locally for small business
start-ups often depends upon the perceived need fo<i>r job creation </i>
in the area, relative income level of the community and other similar
factors. It is always helpful if at least one result of your proposal
is <i>creating new jobs. </i> <br></p>
<p>The SBA Small Business Development
Center (SBDC) Program provides management assistance to current and
prospective small business owners. They are cooperative efforts of the
private sector, the educational community and federal, state and local
governments. SBDCs are located in states and communities across the
country. They provide one-stop management and other assistance to individuals
and small businesses, current and prospective small business owners,
by offering a wide variety of information and guidance in central and
easily accessible branch locations. <br></p>
<p><b>Rural Areas: USDA Assistance</b> <br>
</p>
<p>In rural areas, the Department
of Agriculture provides financial support for small businesses through <i>
Community Action Partnership </i>Programs. You can find a community
action agency near you at <a href="http://www.communityactionpartnership.com" target="_blank">www.communityactionpartnership.com</a></p>
<p> </p>
<h4>b). Loans</h4>
<p>Loans are monies borrowed from
a funding source and must be repaid in full, usually with interest,
within a stated period of time. <i>A loan is a debt,</i> whether you
receive it from a bank, a credit union, federal or state agency. <i>
It goes on your credit record. </i> <br></p>
<p>The application process and
criteria for approval for loans also differ greatly from grants. When
you apply for a loan, the lender’s primary interest is your personal
(for start-ups) or business (for expansion) credit score, rating or
history. The lender’s primary concern is your ability to repay the
money it is lending you, rather than the societal benefit derived from
your project. <br></p>
<p><b>Types of Loans</b> <br>
</p>
<p><a href="http://www.businessfinance.com/micro-loan.htm" target="_blank"><b>Micro Loans</b></a>: These loans generally range from
$5,000 to $35,000 for small businesses that can be used for any business
purpose. <br></p>
<p><b>Direct Loans</b>: These
are Federal loans for a specific period of time, with a reasonable expectation
of repayment. <br></p>
<p><b>Guaranteed/Insured Loans</b>:
These are programs in which the Federal government “guarantees”
loan repayment by arranging with a private lender to indemnify the lender
against part or all of any defaults by a borrower. <br>
</p>
<p><b>Insurance: </b>
These are<b> </b>financial assistance reimbursement assurances for losses
sustained under specified conditions. <br></p>
<p><b>SBA Loans </b> <br>
</p>
<p><a href="http://www.businessfinance.com/sba-loans.htm" target="_blank"><b>7A: SBA Loan
Guaranty</b></a><b>:</b>
These are loans to small businesses from private-sector lenders (banks,
etc.) guaranteed by the SBA. The SBA has no funds for direct lending. <br>
</p>
<p><a href="http://www.businessfinance.com/development-financing.htm" target="_blank"><b>Certified Development
SBA 504</b></a>: These
are loans to small businesses with long-term, fixed-rate financing for
major fixed assets such as land and buildings. CDCs work with the SBA
and private-sector lenders to provide the financing. <br>
</p>
<p><a href="http://www.businessfinance.com/import-export.htm" target="_blank"><b>Federal Export
Assistance Loans</b></a>:
These loans export financing of U.S. goods and services through a variety
of loan, guarantee, and insurance programs, such as Import-Export Bank
Programs. <br></p>
<p><b>State and Local Loans </b> <br>
</p>
<p>These include the following:
Conventional loans; Capital Access Loan Programs; Loan Guarantees; Direct
or Participating Loan Programs; and Micro-loan programs. <br>
<br></p>
<p><b>Private Lender Loans </b> <br>
</p>
<p>These include a full range
of credit and loans available from local lenders, such as banks,
credit unions and other lenders, with various terms and conditions depending
upon your particular business needs and personal or business credit
history. Many local lenders work with the SBA and other federal agencies.
You should inquire if a particular lender has relationships or partnerships
with government agencies or community organizations to arrange loan
financing to meet your business needs. <br></p>
<p><b>State and Local Government
Loans </b> <br></p>
<p>Most states, municipalities,
counties, and regional government agencies offer various loan programs
for small and start-up businesses. States typically offer funding programs
with loan or loan guarantees for small and start-up businesses through
their economic development agencies, finance authorities, or commerce
departments. The goal of local, county, or regional agencies is generally
to improve local economies through job creation and by supporting start-up
and expanding businesses, particularly small businesses. <br>
</p>
<p><b>State Capital Access Programs
(CAP) </b> <br></p>
<p>In addition to conventional
loans, some states have established <i>Capital Access</i> <i>Programs </i>
or other programs that provide lending to applicants who may not satisfy
standard lending criteria. Each agency and/or loan source has its own
credit parameters and requirements. <br></p>
<p>CAP programs are participating<i>
loan arrangements </i>used by various states, in which a<b> </b>
state combines its public funds with money from a private lender to
meet small business borrower needs<b>.</b> CAP are public/private partnerships
between the states and lending institutions that allow “near bankable”
businesses to gain access to capital they need to start up or expand.
An important component of the CAP program is a loan loss reserve account
comprised of funds from the state, the borrower, and the lending institution
based on a percentage of the principal amount of the loan. All monies
in a reserve account, including earned interest, established under the
program, are property of the state. Lending institutions retain the
reserve deposits in the account even after the loan is fully repaid. <br>
</p>
<p><b>Local Loan Funding</b> <br>
</p>
<p>Local county, regional and
municipal governmental sectors often provide small amounts of funding
in the form of start up loans usually under $10,000 for working capital,
equipment or inventory purchases, or property upgrades. These
are micro-loan programs and offer only minimal funding. It is
advisable to contact your local agencies and, even, your local Congressional
representative, to determine if any funding is available.</p>
<h4>c). Leasing</h4>
<p>Leasing is another methodology
for acquiring funding for businesses. Leasing generally applies
to equipment and supplies, such as machinery, automobiles and trucks,
office space, computers, etc. Leasing has some advantages over
loans in that: <br></p>
<ul type="DISC">
<li>Leasing requires
little or no down payment.</li>
<li>Leasing allows you
to expand your budget capabilities and avoid costly delays in awaiting
loan approval.</li>
<li>Leasing affords
you the financing for new machinery and equipment to replace older and
outdated equipment.</li>
<li>Leasing saves up-front
cash flow and creates and maintains bank credit lines and working capital.</li>
</ul>
<h4> d). Equity Financing and Investing</h4>
<p>Private investors operate in
a very different way than grantors and lenders. They operate on
the bottom line of your operation based on your business plan.
In this form of business funding, you raise equity capital or financing
for your business in exchange for a share of ownership in your company.
This ownership is usually in the form of corporate stock share ownership.
Investors have the right to own shares of stock and convert other financial
instruments into shares of company stock. <br></p>
<p>Many small businesses use equity
financing in a limited way. Additional equity may be obtained
from such sources as friends, relatives, employees, customers and industry
colleagues. <br></p>
<p><b>Types of Private Investors</b> <br>
</p>
<p>There are two main types of
private investors: Venture capitalists and angel investors. Both
groups provide unsecured capital funding to young companies with a potential
for rapid growth. This funding is appropriate for businesses through
their developmental stage. The primary objective of these two investment
groups is to achieve a high rate of return on their investments. <br>
</p>
<ul type="DISC">
<li><b>Venture Capitalists: </b>
These are professional investment firms or groups of investors that
are willing to put up at least $1 million in companies with high growth
potential, experienced management, and a sound business plan.
Venture capitalists usually are the first to invest in start-up businesses
before anyone else is willing to take a chance on making an investment.
In return for their investment, venture capitalists (VC) often take
a participatory role in the management of the venture. If you
accept funding from a VC, expect to yield some control of your company
as well as equity in your fledgling business in exchange for the investor’s
funding. Venture capital will provide your business a financial
foundation. However, you must remember that equity investors have
the final call against your company’s assets. In today’s economic
climate, venture capitalists require a higher rate of return than do
other lenders.</li>
<li><b>Angel Investors: </b>
These are non-professional investors who put up money in start-up businesses
because they really want to help your business get off the ground.
These investors rarely request to take an active role in management
of your business or for a large portion of your equity. Angel
investors can be friends, neighbors, family members and members of the
community. Angel investors may be former entrepreneurs or executives
who retired early. Angel investors typically seek companies with
high growth potential, strong management teams and solid business plans,
and invest in industries they have a degree of familiarity with.
Sometimes, angel investors (AV) may invest in groups with friends, and
seek to help the venture in more ways than simply providing “seed”
money. They want involvement in consulting and mentoring the entrepreneur,
and often take greater risks and accept lower returns when they are
attracted to the non-financial characteristics of a proposal. </li>
</ul>
<ul><p>There is also joint-venture
financing that your company can receive from various sources that work
jointly and create mutually agreed upon joint venture agreements to
help you manufacture or market your product or service. <br>
</p></ul>
<h4>e). Non-Monetary Support: In-Kind Contributions</h4>
<ul><p>In-kind contributions are
non-monetary contributions, such as free use of a facility, office space,
tools, etc. These may include goods and services made available by
your town or community. These are win-win situations for everyone
involved because you get the funding and the contributing source gets
the affirmation and positive publicity. This type of support shows
community backing and confirmation that your project has merit. <br>
</p></ul>
<ul><p>You can receive quite a
bit of assistance from local colleges, universities and trade schools
with small business assistance programs as well as SCORE and other SBA-affiliated
programs. Some of these organizations and institutions have incubator
programs that include consulting, marketing and other opportunities
as part of their business education program. Take the time to
research these local opportunities for in-kind contributions.</p></ul>
<h3>II. Start-Up Business</h3>
<p>The most important decision
you will make when you are starting up a business is choosing the type
of business entity that best suits your mission. Your business
entity is the legal structure or form that your business takes, and
its form has a great impact on your finances as well as on your overall
tax and legal liabilities. <br></p>
<p>There are five basic types
of businesses, each one having its own set of advantages and liabilities.
We shall give you an overview of each of these entities. This
will give you a better understanding of the implications of starting
your own business. <br></p>
<p><b>Sole Proprietorship</b> <br>
</p>
<p>This type of business entity
is the simplest and easiest way to set up a business. There are
no complex legal or tax requirements or filing fees, and it is the least
regulated of all the business entities. You may be required to
get an occupancy permit as well as a business permit from the county
in which you are operating. You are the sole owner of the business
and, as such, you are solely responsible for all legal liabilities,
costs and expenses. On the other hand, you control all aspects
of the operations. <br></p>
<p><b>Advantages</b></p>
<ul type="DISC">
<li>Sole owner has total
control over all aspects of the operations.</li>
<li>There are no legal
requirements except for tax filings.</li>
<li>There are local
filing and licensing fees to get started.</li>
</ul>
<p><b>Drawbacks</b></p>
<ul type="DISC">
<li>Sole owner is at
complete risk.</li>
<li>A court judgment
could impose on your personal assets.</li>
<li>Loans are somewhat
tougher to acquire than in other business entities.</li>
</ul>
<br>
<p><b>Limited Partnership</b> <br>
</p>
<p>This type of business entity
contains elements of both partnerships and corporations. A limited
partnership has two types of partners: A general partner, who
handles the daily operations of the business; and the limited partner,
who invests money in the partnership but takes no active role.
Both partner positions are comprised of one or more persons. </p>
<p><b>Advantages </b></p>
<ul type="DISC">
<li>The limited partner
has no liability besides the money that is invested in the business.</li>
<li>It is easier to
find people willing to invest in the business since this type of business
entity requires only money from limited partners with no active duties. </li>
<li>Limited partners
are entitled to a share of profits.</li>
</ul>
<p><b>Drawbacks</b></p>
<ul type="DISC">
<li>There is a lack
of clear dichotomy of responsibilities and guidelines pertaining to
how the business is conducted </li>
<li>It is subject to
more red tape and paperwork than general partnerships.</li>
<li>General partners
are at total risk. </li>
<li>Limited partners
lose their status once they take an active role in the partnership.</li>
</ul>
<br>
<p><b>Limited Liability
Company (LLC)</b> <br></p>
<p>This type of business entity
combines the legal protections of a corporation and the ability to be
taxed as a pass-through entity similar to an S-Corporation. The
LLC is established as a separate legal entity. As in corporations,
the owners of an LLC are not personally liable for debts and obligations.
As of 1997, the LLC can choose to be taxed as a partnership, sole proprietorship
or a corporation. This is a benefit for those who are not able
to meet the requirements of an S-Corporation but want the pass-through
status. You can not form an LLC if your business involves banking, insurance,
and certain professional service operations. <br></p>
<p><b>Advantages</b></p>
<ul>
<ul type="DISC">
<li>No personal liability
for debts incurred</li>
<li>Choice in the way
the company pays its taxes</li>
<li>Can write off expenses
and business losses easily</li>
<li>Can take assets
out of the company without incurring a tax liability</li>
</ul>
</ul>
<p><b>Drawbacks</b></p>
<ul>
<ul type="DISC">
<li>Can not be formed
if your business involves banking, insurance and certain other professional
service operations</li>
<li>Laws governing LLCs
differ from state to state</li>
</ul>
</ul>
<br>
<p><b>Partnerships</b> <br>
</p>
<p>By the very definition of the
term, partnerships involve more than one person. While the initial
setup is as simple as the sole partnership, all partners need to protect
themselves legally by having a detailed written partnership agreement,
including the amount of capital each partner will contribute up front,
the rights and duties of partners, methods of sharing profits and losses,
how disputes will be resolved, salaries, and how the partnership will
be dissolved. </p>
<p> </p>
<p><b>Advantages </b></p>
<ul type="DISC">
<li>There is no need
to register with your state.</li>
<li>There are no sizable
fees for start-up.</li>
<li>Income tax filings
are easy because the partnership is a pass-through entity, that is,
the partners are taxed, not the partnership.</li>
</ul>
<p><b>Drawbacks</b></p>
<ul type="DISC">
<li>The act of one partner
is binding upon all partners.</li>
<li>All partners are
liable for debts incurred by the partnership.</li>
</ul>
<br>
<p><b>Corporations</b> <br>
</p>
<p>This type of business entity
is an artificial creation that establishes itself as a separate entity
in the eyes of the law. It is created by filing Articles of Incorporation
with the Secretary of State, and it receives a certification of incorporation
in return. Corporations have a legal right to conduct business
in the state of incorporation. <br></p>
<p>The internal rules of the corporation
are outlined in the corporation by-laws, which detail the operational
mechanisms and management structure. Corporations are comprised
of:</p>
<ul type="DISC">
<li>Corporation By-Laws</li>
<li>Shareholders –
These people own holdings in the company but do not take an active role
in its management.</li>
<li>Directors – As
a group, known commonly as the Board of Directors, they are responsible
for making the prominent business decisions and appointments.
Directors may be shareholders.</li>
<li>Officers – These
people are responsible for the daily operations of the corporation.
They can be shareholders and/or directors, and are commonly titled:
President, Vice-President, Secretary and Treasurer. It is quite common
to have a Chief Executive Officer (CEO) and Chief Financial Officer
(CFO) within the corporate structure. </li>
</ul>
<br>
<p><b>Types of Corporations</b></p>
<ul type="DISC">
<li>C-Corporation –
This type of corporation is the traditional form in which the company,
not the individuals, are responsible for legal liabilities and risks,
including potential debts. These corporations enjoy tax benefits
and allow you to raise capital and attract new investors easily through
direct sale and transfer of corporate stock.</li>
<li>S-Corporation –
This type of corporation is created subsequent to the formation of a
corporation. This type of corporation allows pass-through taxes
to the individuals involved instead of the corporation’s liability.
The results are significant benefits to the shareholders in terms of
tax breaks and other financial benefits. Check with your lawyer
or accountant regarding the efficacy of forming an S-corporation.</li>
</ul>
<br>
<p><b>Advantages</b></p>
<ul type="DISC">
<li>Limited liability
on the part of investors. They can only lose the size of their
original investment.</li>
<li>Corporations have
no shelf life and can go on functioning forever.</li>
<li>Shareholders are
free to do with their ownership stock whatever they wish, including
sell, trade or give it away.</li>
</ul>
<p><b>Drawbacks</b></p>
<ul type="DISC">
<li>Corporations limit
the control that individuals can exert.</li>
<li>Strict adherence
to the by-laws of the corporation is necessary for its smooth operations.</li>
<li>Corporate state
fees are on the high-end.</li>
<li>Governmental oversight
is greater with respect to corporations.</li>
</ul>
<br>
<p>When deciding on the type of
business entity that best suits your needs, these factors must be taken
into consideration:</p>
<ul type="DISC">
<li>Only corporations
have shares of stock. Therefore, this type of business entity
is attractive to investors such as venture capitalists.</li>
<li>Your type of business
entity affects your qualification for grants. Many grants, especially
those from the private sector, restrict applicants to non-profit status.</li>
<li>Your business entity
affects your ability to obtain a DUNS Number, which is necessary in
order to apply for Federal grants.</li>
<li>Your choice of business
entity affects your personal liability, including debts you occur, any
breach of contract with a grant, loan or other fund provider.
Corporations and limited liability companies (LLCs) are separate entities
that protect the individual from personal liabilities. Sole proprietorships
do not offer that luxury. </li>
</ul>
<h3>III. Grant Research</h3>
<p>Your grant pursuit will be
in vain if you do not find the proper match for your project.
Many grantseekers research grants and, when they find one they like,
they develop a project to meet the grant parameters. This is the
equivalent of putting the cart before the horse. This procedure
will never work. You must have the project concept first, and
then seek out the grant that best suits your project concept. <br>
</p>
<p>You will be wasting too much
time and energy if you attempt to fit your proposal into grant parameters
that do not fit. In other words, if it doesn’t fit, it ultimately
will not be successful, and you will have wasted precious time in the
process. It won’t matter a bit that you are a persuasive writer
and an exceptional wordsmith, and that you have devoted considerable
time and energies in authoring the “perfect grant proposal.”
If you have neglected to do your homework in order to ensure that the
grantor’s mission and goals match those of the agency or organization
that you are representing, then you will be gravely disappointed as
to the outcome of your grant proposal. <br></p>
<p>You must research your potential
grant sources before undertaking the challenge of authoring a grant
proposal. As you conduct your research, take notes on the history
of the funding source, including its mission statement, goals, and other
projects that it has funded in the past. By utilizing the tools
outlined in this course, you’ll be able to identify grantors and grant
opportunities that match the objective of your project, as well as the
mission and goals of your organization. Use a notebook to jot
down the names and types of possible grant sources, and, later on, you
can condense the list depending on their compatibility with yours. </p>
<p class="sub" align="center"><b>Self-Help
Research</b> <br></p>
<p><b>Types of Grants</b></p>
<p> </p>
<p>The first step in your grant
research process is to determine the type of grant that matches your
specifications.</p>
<ul><ul type="DISC">
<li><b>Start-up Grants</b>
provide initial support for your project. These grants, also known
as “seed money” or “program development” grants, support new
projects and help programs to get off the ground. Start-up grants
can attract additional funding by showing other possible funders that
you already have a base of support. Start-up grantors expect additional
funding for your project to be derived from other sources.</li>
<li><b>Project Grants </b>
provide funding for<b> </b>specific projects for fixed periods of time.
Grants of this type include those for training, research, evaluation,
planning, construction, or other specified purposes. BBIR and
STTR grants are examples of project grants.</li>
<li><b>Formula Grants </b>
are based on mathematical or statistical formulas that are associated
with legal requirements. Grantseekers must ensure that their organization
meets the statistical formula requirements of the grantor. For
example, the statistical requirement can be income level, as it pertains
to eligibility, for such opportunities as affordable housing and first-time
home buyer opportunities. </li>
<li><b>Discretionary
Grants </b>are those in which the funding source selects the grant proposal
that best matches its requirements and criteria, and has convinced the
officials of the funding source that it has found the right match.
These grants are discretionary and highly competitive, and most of the
grants discussed herein are of this type.</li>
<li><b>Research Grants </b>
support research or study on a particular issue. Grantors often
award them through sponsoring institutions such as universities and
hospitals (See sponsorships and affiliations described later in this
Chapter). Individual researchers, such as university faculty members,
rely on their professional affiliation or sponsorship to provide facilities
and pay for research assistants while the professors conduct their research.
Federal agencies that award such grants are the National Institute of
Health (NIH), U.S. Department of Agriculture (USDA), and the National
Science Foundation (NSF).</li>
<li><b>Specified-Use
Grants </b>are intended to support a particular activity for specific
uses, and grant recipients must engage in only the specified activity
in order to receive the grant payments. Many of the grants discussed
herein are specified-use grants.</li>
<li><b>Unrestricted
Use Grants </b>place no restrictions on how the recipients of the grant
spend the funds.</li>
</ul></ul>
<br>
<p><b>Categories of Grants</b> <br>
</p>
<p>Grantors intend for their funding
to address specific public needs, and to generally fit into one or more
of the categories outlined below. The list is intentionally broad
in scope, so use the ones that best describe you, your business, or
organization for the particular need you are seeking to address: <br>
</p>
<ul><ul type="DISC">
<li>Arts and Culture</li>
<li>Assistance for the
Disabled</li>
<li>Assistance for the
Homeless</li>
<li>Community Development</li>
<li>Education</li>
<li>Elderly/Senior Citizens</li>
<li>Energy and Alternative
Energy</li>
<li>Energy Conservation</li>
<li>Environment</li>
<li>Filmmaking and Other
Media</li>
<li>Health Care and
Services, including Mental Health</li>
<li>Historic Preservation</li>
<li>Homebuyers, including
First-time Buyers</li>
<li>Hunger </li>
<li>Minorities</li>
<li>Poverty</li>
<li>Recreation</li>
<li>Religion</li>
<li>Research</li>
<li>Small and Start-up
Businesses</li>
<li>Social Services</li>
<li>Sports</li>
<li>Transportation</li>
<li>Women</li>
<li>Veterans</li>
<li>Youth</li>
</ul></ul>
<br>
<p><b>Project Beneficiaries</b> <br>
</p>
<p>Those people or groups of people
who benefit directly from your project are called the consumers or clients
of your project. The goals of the grant are intended to help and
support this specific population. Therefore, the funders will
be more likely to support those projects that are aligned with their
mission and goals. These goals are usually related to causes that
funders believe to have value, not only to the specific population but
also for the greater good of the community at-large. Some of the
groups that receive this attention are: the disabled, underprivileged,
poor, elderly, homeless, and others such as minorities, veterans, women,
youth, children and those physically, mentally, and/or psychologically
abused populations of all ages and ethnicities. <br></p>
<p>If the mission of your organization
is to improve the quality of life for the residents in the community,
there are grantors ready, willing, and able to support your venture
with financial awards to small businesses. Whether the improvement
in the quality of life is physical, mental, spiritual, moral, environmental,
or scientific, your challenge is to identify those who will benefit
from your project, the consumers of your project. <br>
</p>
<p>For example, you may own an
art gallery in town. This is a small business, but it has individual
and societal benefits to the community. You’ll be surprised
how many grantors will support endeavors such as yours with funding
for exhibitions, art classes and scholarships for underprivileged or
at-risk children. <br></p>
<p><b>Project Location</b> <br>
</p>
<p>Oftentimes, grantors will establish
geographic parameters within their request for Proposals (RFPs).
Location is essential to the grant proposal because the grantor will
often have geographic parameters stated in the application, especially
with foundations, local governments and corporations. These grants
are designed specifically to benefit consumers within a specific geographic
region. <br></p>
<p><b>Project Request for Funding</b> <br>
</p>
<p>The amount of your request
is tied to your project or programmatic budget<b>. </b>
You can<b> </b>only request the amount that is available in the grant
appropriation. It is important for you to recognize that the grantor’s
funding level matches or exceeds your estimated funding needs.
For example, if your grant request is $100,000 and the grantor’s funding
limit is $50,000, then you are barking up the wrong tree. You
need to cease and desist your pursuit of this grant and start a new
research venture. There is nothing to stop you from acquiring partial
funding from several sources. <br></p>
<p><b>Project Time Frame</b> <br>
</p>
<p>You should check on the time
frame regarding the grantor’s decision so that you are not applying
for funds that are not available when you need them. If your proposal
is time sensitive, you need to ensure that the funding will be available
within your time parameters. </p>
<p> </p>
<p><b>Project Evaluations</b> <br>
</p>
<p>Project evaluation methodologies
are essential to the grant process because they demonstrate in measurable
terms that you can manage the money effectively and achieve the program’s
goals. Make sure that you research the grantor’s expectations regarding
project evaluation methodologies. Some grantors have specific
evaluation tools for their grants. If you do not have the resources
to meet the grantor’s evaluation requirements, then this particular
grantor and/or opportunity is not a good match for you.</p>
<p class="sub" align="center"><b> </b></p>
<p><b>Project Sponsor </b> <br>
</p>
<p>Many grant opportunities are
available only to individuals with sponsors or affiliations with non-profit
status. If you can increase your chances of securing your business
grant through an association of this nature, then it is, by all means,
the right and proper thing to do. Quite often, your business request
has merit for the community, and town community development corporations
will represent your interests on behalf of the community. <br>
</p>
<p class="sub" align="center"><b>Types of
Business Collaborations</b> <br></p>
<p><b>Sponsorships</b> <br>
</p>
<p>For a grant seeker who does
not have a non-profit status, forming collaboration with a non-profit
sponsor is often the difference maker in obtaining the funding for a
project. Many funding sources only honor grant applications from
non-profit agencies and organizations. Therefore, grant seekers
without a non-profit status must utilize a non-profit sponsor, partner
or affiliate before the grant application will receive consideration. <br>
</p>
<p><b> Identifying the Right Sponsor</b> <br>
</p>
<p>The most important facet of
this sponsorship match is that the goals and priorities of the fiscal
sponsor match those of your agency. There are many sponsors looking
for the opportunity to collaborate on the right project. Do not
settle on your first find; continue your search until you have at least
three from which to choose. At that point, review the priorities
and goals of each sponsor, and then select the one that is the most
closely aligned with your agency or organization. <br>
</p>
<p>Here are some advantages to
keep in mind in making a decision regarding a non-profit sponsor:</p>
<ul type="DISC">
<li>Sponsors can provide
facilities, equipment, and other administrative services and resources
that you may not be able to readily supply.</li>
<li>The process of identifying
and collaborating with a non-profit sponsor is faster and less costly
than forming your own non-profit corporation.</li>
<li>You avoid the legal
and regulatory controls, limitations, reporting, and other IRS requirements
for non-profit organizations.</li>
</ul>
<br>
<p>Here are some disadvantages
to aligning yourself with a non-profit sponsor:</p>
<ul type="DISC">
<li>You will not have
the same control in the decision-making process that you would if you
had your own non-profit organization.</li>
<li>Depending on the
policies of the non-profit sponsor, you may have to negotiate the role
and relationship with your sponsor as well as with the grantor.</li>
</ul>
<br>
<p><b> Sponsorship Agreement</b> <br>
</p>
<p>If you decide to utilize the
services of a non-profit sponsor, you need to construct a Sponsorship
Agreement that clearly states the legal and financial details of your
arrangement. A Sponsorship Agreement is a legal contract, so you
may want to consult an attorney to review the details as stated in the
Agreement. Your accountant should also review the financial arrangements
and options of the Sponsorship Agreement. The fee you pay for
professional advice and counselling will be worth it in terms of peace
of mind. <br></p>
<p>Some non-profits will offer
you their sponsorship status for a fee. You’d be surprised at
how many grant seekers “buy” a non-profit sponsorship. By
paying to use their non-profit status, the grant funds go directly to
the sponsor upon the designation of the award, and the sponsor will
receive a percentage of the grant funds that you receive in exchange
for the use of their sponsorship. The percentage depends upon
the extent to which the sponsor performs administrative functions.
In these “bought” sponsorships, you sacrifice more in money than
in control compared to traditional sponsorships. You need to do
the research into these matters in order to determine which sponsorship
is right for you. <br></p>
<p><b>Affiliations</b> <br>
</p>
<p>Affiliations are associations
formed by individual grantseekers and smaller non-profits who desire
a much broader range of working relationships than are available with
sponsorships. Affiliations are available for grant seekers who
do not have institutional sponsorship, and there are reasons for this
type of collaboration. <br></p>
<p>Grantors’ policies are based
on financial and policy constraints, and an affiliation relationship
can range from working with independence on the project to extensive
limitations on the grantseeker's input into the project. It is
advisable to research the goals and mission of affiliates before you
collaborate with them on a particular project. If you value your
independence in the project, then focus your research only on grantors
and grant opportunities that do not require affiliations or sponsorships. <br>
</p>
<p><b>Fiscal Agents</b> <br>
</p>
<p>If selecting a grantor appears
overwhelming to you, a fiscal agent may be the answer to your dilemma.
Fiscal agents help individual grant seekers identify those non-profit
organizations interested in creating partnerships and/sponsors for grant
proposals. Fiscal agents can also provide assistance in negotiating
the grant writing process to inexperienced grant seekers, who prefer
to work with an established organization experienced in procuring grants. <br>
</p>
<p>Fiscal agents receive and protect
your funds in the following manner:</p>
<ul type="DISC">
<li>Handle your legal
obligations with regard to the grant.</li>
<li>Maintain financial
records regarding grant disbursements.</li>
<li>Keep all receipts
for three years relative to the grant.</li>
<li>Keep all records
on file available to your funding source upon request.</li>
</ul>
<br>
<p>One of the largest and most
renowned of the fiscal agents is operated by the New York Foundation
of the Arts (NYFA). This fiscal agent offers guidelines and an
application that can be downloaded by accessing its website at <a href="http://www.nyfa.org/" target="_blank"><u>www.nyfa.org</u></a>. Whether you are an individual
artist, involved in collaborative artist projects or are an emerging
arts organization, the NYFA’s program has enabled more than 5,000
artistic endeavors to get off the ground by providing technical and
financial services that are otherwise available only to those organizations
with a 501(c) (3) tax exempt status. <br></p>
<p class="sub" align="center"><b>Researching
Federal Agency Grants</b> <br></p>
<p align="justify">The process
of researching Federal grants can be stressful, intimidating and often
confusing. However, the importance of the grant seeker-grantor
match can not be overstated. Federal Request for Proposal (RFP)
applications are lengthy and, sometimes, duplicitous. So, if you’re
looking for some helpful hints in order to navigate the federal RFP
waters, let’s review the key factors pertaining to RFPs. <br>
</p>
<p class="sub" align="center"><b>Request for
Proposal</b> <br></p>
<p>RFPs include all grant funding
opportunities from all grantors. While terms such as Requests
for Applications (RFAs) and Funding Opportunity Announcements (FOAs)
are other labels used to describe government grant opportunities, the
term RFP is all-inclusive, and it includes both RFAs and FOAs.
The RFPs are published in the same format as established by the Federal
Acquisition Regulation, (FAR), and a familiarity with this format facilitates
the federal grant research process considerably. <br>
</p>
<p>RFPs generally contain the
following information:</p>
<ul type="DISC">
<li>A specific receipt
date</li>
<li>The total amount
of funding available for the grant</li>
<li>The total number
of awards likely to be funded</li>
<li>The criteria upon
which your grant proposal will be evaluated, even before its contents
are reviewed</li>
<li>A description of
the review process</li>
<li>The time frame for
the review of the applications and the methodology involved in the process</li>
</ul>
<br>
<p>It bears mentioning that the
RFPs are written in legal terminology, and they can be found in the
Federal Register, along with other government regulations and notices.
There are more than 350 different government agencies that provide grant
funding, and there are more than $400 billion in grants awarded annually
through 1,000 different grant programs channelled through 26 different
federal agencies. <br></p>
<p>The 2009 American Recovery
and Reinvestment Act provides for billions more in additional funding.
With grant opportunities galore, it is incumbent upon you to research
for the Federal grant opportunities that best meet the goals and objectives
of your proposed program or project. <br></p>
<p> <b>Federal Government
RFPs</b> <br></p>
<p>All government agency grants
are conducted online. This has cut down enormously on the time
it takes to complete the process. Your first look at a federal
agency’s Request for Proposal (RFP) can be a stressful, confusing
experience. However, when you know <i>what</i> to look for and <i>where </i>
to find the most important information, this daunting task can become
far less stressful. <br></p>
<p>Grant money is provided by<b> </b>
literally thousands of grant funding sources in the government (federal
and state agencies), foundations, and corporations. Your best chances
of successfully obtaining grant funds to start a new business or expand
an existing one is to find those grantors that <i>best match your business’s
goals and objectives.</i> <br></p>
<p>The challenge in the grant
process is to learn the research methods and find the Federal Agencies
that provide the type of funding that you’re looking for. Your
second challenge is then to construct a comprehensive grant proposal
according to the parameters laid out for you in the grantor’s RFP. <br>
</p>
<p>By following the directives
in the RFP, you’ll be able to determine the grantor’s goals and
objectives for funding this project, and the explicit instructions for
completing the proposal according to the grantor’s parameters. Government
agencies (and other grantors) announce new grant opportunities in the
form of Requests for Proposals (RFP’s) and other grant opportunity
announcements, </p>
<p>Government grant (RFP) announcements
typically include the following items:</p>
<ul type="DISC">
<li>A specified<i> </i>
application receipt date deadline </li>
<li>Amount of funding
earmarked for the award</li>
<li>Criteria for eligibility</li>
<li>Criteria for award
determination</li>
</ul>
<p><b> Commencing Your Online
Research</b> <br></p>
<p>Today, all research on federal
grants should be conducted through the services of the Internet. Every
government grant can be found easily on the Internet by utilizing the
government research tools, <a href="http://Grants.gov" target="_blank"></a>Grants.gov
and the Catalog of Federal Domestic Assistance<b>.</b> <br>
</p>
<p><b>Grants.gov</b> <br>
</p>
<p>The government website, located
at <a href="http://www.Grants.gov" target="_blank"></a><a href="http://www.grants.gov/" target="_blank"><u>www.grants.gov</u></a>, is the government portal containing
all federal government grants. The government announces all of its grants
through this website, and the site allows you to locate grants easily
through its standardized system for researching potential grant opportunities.
The process of finding particular grant opportunities on <a href="http://www.grants.gov/" target="_blank"><u>www.Grants.gov</u></a> is simple if you follow these few
steps:</p>
<ul type="DISC">
<li>Access the “Search
Grant Opportunities” screen by clicking the “Find Grant Opportunities”
tab located at the top left of the webpage. </li>
<li>Enter a keyword,
a Funding Opportunity Number, or a CFDA Number in order to initiate
a basic search. If you are not sure of the type of grant you want, then
browse the different categories of grants also located on the <a href="http://Grants.gov" target="_blank"></a><b>Grants.gov</b> webpage. </li>
<li>Browse by federal
agency. </li>
<li>Conduct an advanced
search by entering the date, category, agency, type of funding, and/or
time period, if you do not find what you’re looking for with a basic
search. </li>
</ul>
<p>When you find a grant that
closely matches what you are searching for, make sure you write down
the Funding Opportunity Number of that particular grant because you
will need it later if you decide to submit a proposal for this grant. <br>
</p>
<p><b>Catalog of Federal Domestic
Assistance </b> <br></p>
<p>This document would be a gigantic
headache to review in libraries because it contains well over 1500 pages
in small print. Luckily, by accessing <a href="http://www.cfda.gov/" target="_blank"><u>www.cfda.gov</u></a>, you can save yourself headaches and
precious time, since all federal agency funding opportunities are catalogued
in this comprehensive and user-friendly research tool. Its database
includes the following: </p>
<ul type="DISC">
<li>all federal assistance
programs</li>
<li>grants for individuals,
profit and non-profit agencies and organizations </li>
<li>grants for specific
groups as well as state and local governments </li>
<li>other government
programs such as loans and financial assistance programs </li>
</ul>
<p> You can narrow your search
on the website by clicking “Find a Grant” on the CFDA “Search
for Assistance” page. The process of finding particular grant opportunities
on <a href="http://www.cfda.gov/" target="_blank"><u>www.cfda.gov</u></a> is simple if you follow these few
steps: </p>
<ul type="DISC">
<li>Initiate your search
by entering a keyword. </li>
<li>Use the “Search
Tips” tab if you need further assistance at this point. </li>
<li>Initiate an advanced
search by entering data on any of 25 different topics. </li>
<li>Browse the website
by category, agency and/or sub-agency, beneficiary, applicant eligibility,
and other methods as listed under “Browse the Catalog.” </li>
</ul>
<p> </p>
<p><b>Browsing the CFDA</b> <br>
</p>
<p>The CFDA lists all federal
government funding programs with links to current grant opportunities
from each agency. Here is a listing of the possible ways to utilize
the “Browse by Category” tab on the CFDA website: <br>
</p>
<p><b>Browse by Functional Area: </b>
There is a listing of all functional categories under this heading,
such as education, transportation, health care, etc. If you wish to
refine your search, there are sub-classifications within each of these
topical categories. For example, if you look under the functional area
“Education,” for grants in the field of dentistry, you’ll find
a sub-category of “Dental Education,” which will list appropriate
grant opportunities in that area.</p>
<p><b>Browse by Beneficiary: </b>
This is a recommended site for first time grantseekers, because it allows
you to search the database under three distinct categories: “Individual,”
“Family,” and “General Public.” This practical tool will help
you find funding opportunities for individuals, as well as for small
businesses, non-profit organizations and many others.</p>
<p><b>Browse by Applicant Eligibility: </b>
This is your most important research tool in the CFDA because, if you’re
not eligible for funding, then you’re wasting precious time that could
be utilized researching other options. You can research this area by
“Individual/Family,” and “General Public/Anyone.”</p>
<p><b>Browse by Program Deadline
Date: </b>This research tool allows<b> </b>
you to review the CFDA by program deadline date. It includes a chronological
listing of current and future federal grant programs and their deadlines. </p>
<p><b>Browse by Programs Requiring
Executive Order 12372 Review: </b>This Order requires more than 500
federal programs to consult with state and local governments prior to
rendering decisions on their grants. In this manner, the states are
permitted to design their own grant review process through consultation
with the local governments, and then select the federal assistance and
development activities they want to review.</p>
<p><b>Browse by Budget Function
Code: Account Identification and Hidden Financial Risks of Federal Agency
Grants </b>-<b> </b>There is an eleven-digit budget code that identifies
the account from which the grant is to be funded. In this way, you are
assured that federal funds have actually been allocated to support a
particular grant program as opposed to funds that have simply been authorized
by Congress and have not yet been allocated. <br>
</p>
<p><b>Researching Federal Agency
Grants Directly</b></p>
<p>In addition to <a href="http://www.Grants.gov" target="_blank"><u>www.Grants.gov</u></a> and the CFDA, you may decide to go
directly to the federal agencies for your research. There are 26 Federal
Agencies actively involved in dispersing grant funding. Some of
the federal agencies fund well over three hundred programs, and the
programs are listed on the specific agency’s website. Because of the
2009 American Recovery and Reinvestment Act, there will be monies available
at the Federal level, as well as monies passed through to the states. <br>
</p>
<p>If you were to log onto the
website of the U.S.Department of Health and Human Services, you would
find a page entitled <b>“HHS OPDIV Funding Opportunities (HHS Operating
Divisions),” </b>stating the “...HHS publicizes grant-funding opportunities
through the following resources: The Federal Register (FR), <a href="http://Grants.gov" target="_blank"><u>Grants.gov</u></a>, and the National Institute of Health
Guide for Grants and Contracts (NIH Guide). HHS OPDIVS and other programs
may provide additional information about funding opportunities on their
own websites.” <br></p>
<p>Some of the more popular HHS
agencies are as follows:</p>
<p><b>Administration for Children
and Families (ACF)</b> - These programs are designed to promote the
well-being of families, children, individuals, and communities. ACF
administers the State-Federal welfare program titled, “Temporary Assistance
to Needy Families,” and the Head Start program, among several others. </p>
<p><b>Administration on Aging
(AOA) -</b> These programs provide funding to support a nation-wide
aging network that serves over 240 million meals (including Meals on
Wheels) annually for the elderly. The programs also help to provide
transportation and other needed services. </p>
<p><b>Agency for Healthcare Research
and Quality (AHRQ) -</b> These programs fund research designed to improve
the quality of health care, and to broaden access to services. </p>
<p><b>Centers for Disease Control
and Prevention (CDC) </b>- These programs promote health and quality
of life by preventing and controlling disease, injury, and disability.
The CDC received tremendous publicity in the 1980’s by launching a
preventive campaign against the spread of Acquired Immune Deficiency
Syndrome (AIDS). </p>
<p><b>The Centers for Medicaid
and Medicare Services (CMS) -</b> These programs administer the health
care to aged and indigent populations in America. The CMS administers
the Medicare and Medicaid programs and the State Children’s Health
Insurance Programs (SCHIP). </p>
<p><b>Food and Drug Administration
(FDA) -</b> This regulatory body protects American consumers through
the enforcement of the Federal Food, Drug, and Cosmetic Act and other
related public health laws. </p>
<p><b>Health Resources and Services
Administration (HRSA) -</b> These programs provide the funding to improve
health by ensuring quality health care to those underserved, vulnerable
and special needs populations while supporting a nationwide network
of community and migrant health centers for the homeless and indigent. </p>
<p><b>Indian Health Service (IHS) </b>
– These programs support a network of hospitals, health care centers,
school health centers, and health stations for Native Americans, nearly
1.5 million in number, from over 500 federally recognized tribes. </p>
<p><b>Office of Public Health
and Services </b>- The two main programs offer funding for the research
and prevention of diseases of minority and underserved populations (Office
of Minority Resource Center), and the prevention and treatment of substance
abuse and mental illness (Substance Abuse and Mental Health Services
Administration). <br></p>
<p class="sub" align="center"><b>Researching
State Government Grants</b> <br></p>
<p>It is a difficult task to retrieve
a complete overview of the grants offered by state governments because
of the absence of uniformity in their systems. Here are some facts pertaining
to state government grants that you should be aware of:</p>
<ul type="DISC">
<li>State websites have
links labelled “grant funding” where you can commence your grant
funding search. </li>
<li>Use popular search
engines such as Yahoo and Google in order to locate state government
grant search websites. </li>
<li>State websites allow
you to download their RFPs directly from their sites. </li>
<li>State governments
use the domains of <b>.gov</b> and <b>.us</b> in order to differentiate
from private companies that generally use .com and .net as their domains.
Thus, government websites are identifiable if you are searching for
government funding sources. Non-profit agencies are designated by the <b>
.org</b> domain on the Internet. </li>
</ul>
<p>State government counterparts
of federal agencies, like HUD, offer grant opportunities that can be
accessed from the federal agency’s web page. You can find out if your
state is eligible for a particular HUD grant by accessing the “Grant
Funds Available” tab on the HUD webpage.</p>
<p class="sub" align="center"><b>Researching
Local Government Grants</b> <br></p>
<p>Local government grants present
a less intimidating process to retrieve information on local grant opportunities.
Here are some facts pertaining to local government grants that you should
be aware of:</p>
<ul type="DISC">
<li>Local counties and
municipalities may announce funding opportunities through RFPs. </li>
<li>Local counties and
municipalities have their own websites with the domain <b>.gov</b>
and <b>.us</b> to distinguish them from those in the private domain. </li>
<li>Local counties and
municipalities are receptive to unsolicited grant proposals from local
residents who identify a local need and propose a solution. </li>
<li>Local counties and
municipalities support grant proposals with in-kind contributions. These
are non-cash donations that are needed for project undertakings. Examples
of in-kind contributions are space (unused rooms in public buildings),
tools, computers, and other equipment and resources. In-kind contributions
show grantors that there is support on a local level for your proposal. </li>
</ul>
<p>The two best reference sites
for federal grants on the Internet are the <b>Catalogue of Federal Domestic
Assistance (CFDA) and Grants.gov. </b> <br></p>
<p><b>CFDA</b> <br>
</p>
<p>The CFDA is a free, comprehensive,
and user-friendly research tool to find federal agency funding opportunities,
including all types of grants, loans, and other federal assistance programs.
It is an excellent information resource with its own database of federal
financial assistance programs of all federal funding programs, which
includes grants, loans, government entitlement programs, and any other
funds available from the federal government. It includes all Federal
assistance programs available to all grant-seekers, including non-profit
organizations, individuals, small businesses, state and local governments,
and others seeking federal agency finding. <br></p>
<p>The CFDA is a reference catalogue<b> </b>
and a great resource for starting your funding research, but it serves
as an information resource, not a funding tool. <a href="http://12.46.245.173/cfda/cfda.html" target="_blank"></a><b>You
<i>cannot apply for grants directly through CFDA</i>. </b>
It does not provide advisements on applying for particular grants,
applications or other forms. After you find the grant program you want,
proceed to <a href="http://www.grants.gov/" target="_blank"><u>www.Grants.gov</u></a> to apply for the particular grant
or loan. If you plug in a keyword on the CFDA site, you can find a
grant program to match your needs. <br></p>
<p><b>Grants.gov</b> <br>
</p>
<p>Grants.gov is the website of
the Federal Government, and it is free of charge. To access this
site in search of a grant, type in the keyword you are looking for,
such as “college scholarship” or “small business.” If
you don’t find what you’re looking for, then click on the tab “advanced
search” by date, category, agency, type of funding or time period. <br>
</p>
<p>To find the most recently updated
list go to the Grants.gov front page and click on “New Grants in past
7 days” or see our weekly <b>Newsletter</b> which<b> </b>
updates these grant opportunities for you.</p>
<p> </p>
<p><b>
State and Local Funding</b> <br></p>
<p>State agencies provide much
government funding for small and start-up businesses. These state agencies
often work in conjunction with federal agencies (i.e. HUD), or the private
sector (corporations, venture capitalists, etc.) in various corroborative
and coordinated efforts. The 2009 American Recovery and Reinvestment
Act passes on billions of dollars in federal aid to the individual states
as a stimulus to the economy. Much of these funds are available
to grantseekers. <br></p>
<p>Individual states post their
grant opportunities on their respective websites. Online applications
are available in all states and in most local jurisdictions around the
country.</p> <br />
<p><b>Google for Your Grant</b> <br>
</p>
<p>Search engines such as Google
and Yahoo provide excellent formats for searching for grant opportunities.
Just type in a keyword, such as “small business,” and allow the
search engines to perform their magic and provide you with the listing
you desire. <br></p>
<p>You can also “Google” to
find active investors. Various on-line databases are available for researching
venture capital firms. They operate similar to the on-line search services
for grants and loans, but include only venture capital firms. One example
is <a href="http://www.capitalhunter.com/" target="_blank"><u>www.capitalhunter.com</u></a>, a searchable database to research
new and historic financings and identify active investors. It publishes
a newsletter and other relevant information about venture capital that
is useful for anyone researching such firms. <br></p>
<p>Another on-line research services
is <a href="http://www.vcfv.com/" target="_blank"><u>www.vcfv.com</u></a>, which provides information about
venture capital firms that provide financing to new and rapidly growing
companies. This firm lets you “test search” its database before
you register for its services at <a href="http://www.vcfv.com/search_database.asp" target="_blank"><u>http://www.vcfv.com/search_<WBR>database.asp</u></a>. Its directory has over 5500 venture
capital and private equity firms. A third on-line search firm is vFinance.com,
with a free searchable database at <a href="http://www.vfinance.com/venca.asp" target="_blank"><u>http://www.vfinance.com/venca.<WBR>asp</u></a>. <br></p>
<p>The Internet has become the
vehicle for the grant process. It saves time and preserves trees through
the electronic submission process. Now that you have a basic knowledge
about researching grants, our next chore is to write one in a persuasive
manner.</p>
<h3>IV. Business Plans</h3>
<p>Before you undertake another
step in the Grantwriting process, you need to prepare what is commonly
known as the “Business Plan.” The Business Plan is a detailed
layout of your business plans at least for the next few years.
Some business plans are projected over a three year period, while others
capture your projections for the next five years. <br>
</p>
<p>Grantors value business plans
because they provide valuable information in a number of areas:</p>
<ul type="DISC">
<li>It shows your organizational
skills.</li>
<li>It demonstrates
your knowledge in the field of your business.</li>
<li>It indicates your
intentions to sustain the business after the monies from the grantor
have been spent.</li>
<li>It indicates a connectivity
between your business and a societal benefit.</li>
<li>It indicates other
funding sources for your business.</li>
<li>It shows that your
plans are in synchronicity with the mission, goals and objectives of
the grantor.</li>
</ul>
<br>
<p>You can present a thorough
and well-researched business plan, but if you are seeking money from
a funding source that is not aligned with the mission, values and objectives
of your business, then your efforts will be in vain. <br>
</p>
<p><b>Writing Your Business Plan</b> <br>
</p>
<p>The first step in writing a
grant for a business is to prepare a business plan. Once it is
written, you can incorporate it into your grant. Here are the
sections that are contained in a business plan: <br></p>
<p class="sub" align="center"><b>Cover Letter</b> <br>
</p>
<ol type="A">
<li>Must be written
on the stationary of your business or that of the organization you represent.</li>
<li>Must include the
name, address, telephone number, fax number and web site of the applying
body. If the grant submission is electronic, then include the
email addresses of the significant members of your team. </li>
<li>Must address your
letter to the individual listed as responsible for the funding program,
often called the “Program Officer” of the grant.</li>
<li>Must present a brief
overview of your organization, including its mission statement, its
purpose and the rationale for funding the project.</li>
<li>Must include a brief
notation about previous achievements of your organization on similar
projects.</li>
<li>Must include a mention
of any prior communications you may have had with the grantor, and details
regarding those communications.</li>
<li>Must include a summary
of your grant proposal, including the amount of money you are requesting,
the specific population your project will serve, and the problem or
need you hope to solve or eliminate.</li>
<li>Must include the
signatures of your Executive Director/CEO, and the Chairman of the Board
of Directors.</li>
<li>Express your willingness
to sit down and meet with the grantor and/or representative in person
to answer any questions about your proposed project.</li>
<li>Must be kept to
a maximum of two pages, so be concise, factual and succinct.</li>
</ol>
<p class="sub" align="center"><b>Section I:
Executive Summary</b> <br></p>
<ol type="A">
<li>Opening Sentence
– Identify who you are, your title, and the name of the business or
organizational entity that you are representing, and the amount of funding
that you are seeking and for what purpose. </li>
<li>Second Sentence
– State the legal name of the company/organization/entity, the present
status of the company and its tax status (a for-profit or a non-profit
entity with a government issued 501(c) (3) classification) with Fed
Tax I.D. #.</li>
<li>Describe the mission
of your company and your mission statement – do you sell services
or products or both?</li>
<li>Describe the line
of work of your company.</li>
<li>Present the current
state of affairs in the industry in which your company is involved,
and the connection between what is presently being done in the field
and what you intend to accomplish. </li>
<li>State the importance
of the critical need that your proposal addresses, and the rationale
for why this need must be met expeditiously. </li>
<li>Briefly describe
your proposal in terms of meeting the critical need. </li>
<li>Describe why your
company is best suited to meet the problem/need as outlined in the grantor’s
Request for Proposals (RFP).</li>
<li>Describe the long-term
goals of your company.</li>
<li>Describe the project
objectives and correlate them with those of the grantor. Mention
any other funding sources for this project, and the amounts of money
that will be or have been obtained.</li>
<li>If you are requesting
funding less than the total amount required for the project, state where
the balance of the monies needed to complete the project will come from. </li>
<li>Match your objectives
to those of the grantor, as outlined in the RFP. </li>
<li>Outline the major
activities of your project.</li>
<li>Present a timetable
for your project.</li>
<li>State the budget
costs of your program for the first year, including direct and indirect
expenditures.</li>
<li>Identify the evaluation
process you plan to employ in order to ensure that your objectives are
met.</li>
<li>Mention other community
agencies or groups that support your project.</li>
<li>State how you intend
to make your program sustainable after the grant ends.</li>
<li>State the immediate
value and the long-term good of your project, and identify its immediate
beneficiaries, as well as the long-term societal beneficiaries.</li>
</ol>
<p class="sub" align="center"><b>Section II:
Credentials and Qualifications</b> <br></p>
<ol type="A">
<li>Identify who you
are and state your relationship to the company or organization on whose
behalf you are authoring the proposal.</li>
<li>Identify the company
or organization you are representing, as well as its location, line
of work, and number of years in the field.</li>
<li>Describe similar
projects your company or organization has undertaken in the past, including
project start and end dates and location.</li>
<li>Correlate the credibility
of your company or organization in terms of the project at hand. </li>
<li>State the manner
(methodology) in which you plan to meet your stated need.</li>
<li>Name and describe
any other grant programs awarded and undertaken by your company or organization.</li>
<li>Briefly describe
your planned projects and programs over the course of the first 12-15
months of the grant, including anticipated goals and new projects due
to anticipated programmatic growth. </li>
<li>State the purpose
for the establishment of your business or organization.</li>
<li>Identify those groups
who will benefit from your project’s services and/or products.</li>
<li>Identify the key
members of your company or organization who are part of your project
team and who are vested with the responsibility of completing the project.</li>
<li>Establish the credentials
for your team members that qualify them to make your team best suited
to deliver the project in a timely and financially sound manner.</li>
</ol>
<p class="sub" align="center"><b>Section III
- Description and Vision toward the Future</b> <br></p>
<p>A. Describe what your
business is and what it stands for.</p>
<p>B. Make a statement regarding
the potential growth of your company</p>
<ul><p>C. Identify the specific
goals and objectives of your company – goals are long-term
mission of the project, such as “to eliminate homelessness in the
Bronx.” Objectives must match your project’s needs, and must be
measurable, such as: “To provide housing for 200 homeless adults
in the Bronx.”</p></ul>
<p>D. Provide a brief history
of your company</p>
<p>E. Provide the names
of your key employees and their responsibilities. <br>
<br></p>
<p class="sub" align="center"><b>Section IV:
Your Market</b> <br></p>
<p>A. Provide basic information
on your industry and its outlook.</p>
<p>B. Identify your customers
and the potential customers you can target. </p>
<p>C. Discuss the share
and scope of your business market, and growth potential. <br>
<br></p>
<p class="sub" align="center"><b>Section V:
Your Products/Services</b> <br></p>
<p>A. Describe the products
and services that you deliver.</p>
<p>B. Attach a brochure
or reference a picture of your products.</p>
<p>C. Identify the selling
price of your products and/or services.</p>
<p>D. Provide basic information
as to the competitiveness of your selling price. <br> <br>
</p>
<p class="sub" align="center"><b>Section VI:
Making the Sale</b> <br></p>
<ul><p>A. Describe your
selling operation with regard to closing the deal with prospects.</p></ul>
<ul><p>B. Describe your
selling operation with regard to compensation for the sales force. </p></ul>
<ul><p>C. Describe your
selling operation with regard to optimizing the order protocol and management
of your database.</p></ul>
<p>D. Describe your selling
strategy with regard to pricing, promotion, products and place.</p>
<p>E. Describe how you will
apply pricing, promotion, product diversification and channel </p>
<p> distributions
to sell your products and services competitively. <br>
<br></p>
<p class="sub" align="center"><b>Section VI:
Management and Company Organization</b> <br></p>
<p>A. Provide a description
of how your company is organized.</p>
<p>B. Provide an organizational
chart.</p>
<ul><p>C. Identify any special
licenses that are necessary to carry on a business such as yours, and
provide licensure numbers. </p></ul>
<p>D. Provide a brief biography
of key management personnel within your company. <br> <br>
</p>
<p class="sub" align="center"><b>Section VII:
Marketing and Sales Objectives</b> <br></p>
<ul><p>A. Use the following
chart to illustrate your key marketing and sales objectives. For
example, these can include milestones such as: Increasing your
customer database; training personnel to provide better service, etc. <br>
</p></ul>
<p>
Complete the following chart: <br></p>
<a name="0.1_table01"></a>
<div align="left">
<table width="450" border="2" cellspacing="0">
<tr valign="top"><td>Milestone</td>
<td>Start Date</td>
<td>End Date</td>
<td>Budget</td>
<td>Manager</td>
<td>Department</td></tr>
<tr valign="top"><td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
</table>
</div>
<br>
<p class="sub" align="center"><b>Section VIII:
Financial Management</b> <br></p>
<ul><p>A. The first set
of tables deals with business projections. The categories in the
first graph are as follows: <br></p></ul>
<ul type="DISC">
<li>New Investments
– This represents the total amount of money you are requesting, along
with any other investment monies you will be receiving.</li>
<li>New Loans – These
are monies from lenders that will need to be repaid.</li>
<li>Sales – The amount
of money that your business brings in.</li>
<li>Other Income –
This is income derived from sources other than sales.</li>
</ul>
<br>
<a name="0.1_table02"></a>
<div align="left">
<table width="450" border="2" cellspacing="0">
<tr valign="top"><td> </td>
<td>Month 1</td>
<td>Month 2</td>
<td>Month 3</td>
<td>Month 4</td>
<td>Month 5</td>
<td>Month 6</td></tr>
<tr valign="top"><td>New Investments</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td>New Loans</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td>Sales</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td>Other income</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
</table>
</div>
<br><a name="0.1_table03"></a>
<div align="left">
<table width="450" border="2" cellspacing="0">
<tr valign="top"><td> </td>
<td>Month 7</td>
<td>Month 8</td>
<td>Month 9</td>
<td>Month 10</td>
<td>Month 11</td>
<td>Month 12</td></tr>
<tr valign="top"><td>New Investments</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td>New Loans</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td>Sales</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td>Other income</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
</table>
</div>
<br>
<p>How much money do you plan
on receiving in the following categories in years two and three? <br>
</p>
<a name="0.1_table04"></a>
<div align="left">
<table width="450" border="2" cellspacing="0">
<tr valign="top"><td> </td>
<td>Year two</td>
<td>Year three</td></tr>
<tr valign="top"><td>New Investments</td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td>New Loans</td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td>Sales</td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td>Other income
</td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td> </td>
<td> </td>
<td> </td></tr>
</table>
</div>
<br>
<ul><p>B. The second set
of tables provides information about the direct cost of sales.
Do not include overhead or personnel costs. In some businesses,
your cost may be $0. <br> <br></p></ul>
<p> </p>
<a name="0.1_table05"></a>
<div align="left">
<table width="450" border="2" cellspacing="0">
<tr valign="top"><td> </td>
<td>Month 1</td>
<td>Month 2</td>
<td>Month 3</td>
<td>Month 4</td>
<td>Month 5</td>
<td>Month 6</td></tr>
<tr valign="top"><td>Cost of sales</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
</table>
</div>
<br><a name="0.1_table06"></a>
<div align="left">
<table width="450" border="2" cellspacing="0">
<tr valign="top"><td> </td>
<td>Month 7</td>
<td>Month 8</td>
<td>Month 9</td>
<td>Month 10</td>
<td>Month 11</td>
<td>Month 12</td></tr>
<tr valign="top"><td>Cost of sales</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
</table>
</div>
<p>Enter your direct cost of sales
for years two and three: <br></p>
<a name="0.1_table07"></a>
<div align="left">
<table width="450" border="2" cellspacing="0">
<tr valign="top"><td> </td>
<td>Year two</td>
<td>Year three</td></tr>
<tr valign="top"><td>Cost of sales</td>
<td> </td>
<td> </td></tr>
</table>
</div>
<ul><p>C. The third set
of tables reflects your spending plans during the first year on the
following: <br></p></ul>
<ul type="DISC">
<li>Rent and Utilities
– This is the total amount that you spend on your mortgage or rent,
plus telephone and cable, electric, water, etc.</li>
<li>Payroll – This
includes salaries and related expenses such as payroll taxes and employee
benefits.</li>
<li>Sales/Marketing
– This is the amount that you spend on the promotion and advertising
of your product and/or service.</li>
<li>Loan Payments –
This includes car payments, line-of-credit payments, etc.</li>
<li>Other Operating
Expenses – This includes legal and accounting fees, office supplies,
maintenance, etc. </li>
<li>Purchase of Assets
– This includes your anticipated purchases of new vehicles, etc.</li>
<li>Other Cash outflows
– These include expenses that do not fit into any other category.</li>
</ul>
<br><a name="0.1_table08"></a>
<div align="left">
<table width="450" border="2" cellspacing="0">
<tr valign="top"><td> </td>
<td>Month 1</td>
<td>Month 2</td>
<td>Month 3</td>
<td>Month 4</td>
<td>Month 5</td>
<td>Month 6</td></tr>
<tr valign="top"><td>Rent/Utilities</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td>Payroll</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td>Sales/Marketing</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td>Loan Payments</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td>Other Operating
<p>Expenses</p></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td>Purchase of assets</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td>Other cash outflows</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
</table>
</div>
<br><a name="0.1_table09"></a>
<div align="left">
<table width="450" border="2" cellspacing="0">
<tr valign="top"><td> </td>
<td>Month 7</td>
<td>Month 8</td>
<td>Month 9</td>
<td>Month 10</td>
<td>Month 11</td>
<td>Month 12</td></tr>
<tr valign="top"><td>Rent/Utilities</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td>Payroll</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td>Sales/Marketing</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td>Loan Payments</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td>Other Operating
<p>Expenses</p></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td>Purchase of assets</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td>Other cash outflows</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
</table>
</div>
<p>How much do you plan on spending
on each of these expenses in years two and three?</p>
<a name="0.1_table0A"></a>
<div align="left">
<table width="450" border="2" cellspacing="0">
<tr valign="top"><td> </td>
<td>Year two</td>
<td>Year three</td></tr>
<tr valign="top"><td>Rent and Utilities</td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td>Payroll</td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td>Sales and Marketing</td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td>Taxes</td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td>Loan Payments</td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td>Other operating expenses</td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td>Purchase of assets</td>
<td> </td>
<td> </td></tr>
<tr valign="top"><td>Other cash outflows
</td>
<td> </td>
<td> </td></tr>
</table>
</div>
<p><b>Based on the information
entered above, </b></p>
<ul><p>E. Explain your projected
cash flow – You may explain how you intend to pay your bills during
slow months. Remember, your cash flow can never go below zero.
The following is a sample response: </p></ul>
<ul><p>
“The preceding chart shows our cash flow projections. Our cash flow
will be positive throughout our opening year, partly due to the funding
we receive for startup costs; however, our cash flow remains positive
over the next three years and we expect it to continue to increase.”</p></ul>
<ul><p>F. Summarize your
financial plan. – Indicate how quickly you anticipate your business
growing, and how are you going to finance that growth. Below is
an example of such a summary:</p></ul>
<ul><p>
“We expect business to be slow in the beginning months, but once our
advertising takes effect and word spreads that we have finally opened
our restaurant, there will be an influx in business. Grants and loans
from investors will be used to start the restaurant. Then we will
fund our growth with profits. </p></ul>
<ul><p>
We are asking for $550,000 in funding; $400,000 to buy the restaurant
and the remainder for remodelling and operating costs.”</p></ul>
<ul><p>G. Summary of strategy
and implementation – Summarize your business strategy and your plan
to implement your goals and objectives listed earlier. Here is
an example:</p></ul>
<ul><p>
“The primary focus of <b>Sample Business</b> is to increase our brand
name recognition, thereby increasing our software subscriptions and
legal services sales. We pride ourselves on customer service and in
providing an excellent product. We have differentiated ourselves with
our unique real-time legal processing software, and we will continue
to market to those in the legal industry, as well as to other companies,
governments and individuals. We have a focused view on our marketing
goals and we believe they will help us achieve our reasonable sales
goals.” <br> <br></p></ul>
<p class="sub" align="center"><b>Section IX:
Appendix</b> <br></p>
<p>A. List of Board of Directors</p>
<p>B. Minutes of the past
Board meetings over the past year </p>
<p>C. Staff Resumes</p>
<p>D. Job Descriptions,
as pertaining to the project</p>
<p>E. Any charts, graphs
and statistical data tables</p>
<p>F. Most recent fiscal
audit of your organization</p>
<p>G. List of business equipment</p>
<p>H. Copies of newspaper
articles and advertisements, if possible</p>
<p>I. Information supporting
the growth of your industry</p>
<p>J. Key business agreements,
such as copies of leases, contracts, etc.</p>
<p>K. Any company brochures, annual
reports and/or newsletters <br> <br></p>
<p>The Small Business Administration
is an excellent source for business plans. Some grantors
request business plans in the format of SCORE (Service Corps of Retired
Executives). <br></p>
<p>Work through the sections in
any order that you like, except for the Executive Summary section, which
should be the final piece that you complete. When you finish your
first draft, you’ll have a collection of small essays on the various
topics of the business plan. Then you’ll want to edit them into a
smooth-flowing narrative. <br></p>
<p>The real value of creating
a business plan is not having the finished product in hand, but rather
thinking and contemplating about your business in a systematic way through
the process of preparing and researching your plan. The act of planning
helps you to think things through thoroughly, and look at your ideas
critically. It takes time now, but avoids costly, perhaps disastrous,
mistakes later. <br></p>
<p>It typically takes several
weeks to complete a good plan. Most of that time is spent in research
and re-thinking your ideas and assumptions. That is the value of the
process,<i> </i>Make time to do the job properly. Finally, be sure to
keep detailed notes<i> o</i>n your sources of information and on the
assumptions underlying your financial data.</p>
<h3>V. Writing a Business Proposal</h3>
<p>The good news is that you have
done the bulk of the work with your business plan. You can incorporate
your business plan into the grant proposal. However, there is
still a great deal of work to be done. Also, there are many things
that you need to know about writing a grant, such as making sure that
your goals and objectives are aligned with those of the funding source
and ensuring that your proposal meets the requirements as outlined in
the grantor’s RFP. <br></p>
<p>Please refer to the SECTION
on WRITING a GRANT PROPOSAL for a comprehensive presentation on the
research, preparation and submission of a successful grant proposal.</p>
<h3>VI. Common Business Grantwriting Mistakes</h3>
<p>Here is a list of things you
must avoid during the process of securing a business grant: <br>
</p>
<ul type="DISC">
<li><b>Failure to establish
a rapport with the funding source is a recipe for disaster. </b>
You must strive to develop a working relationship with at least one
member of the funding group. Don’t hesitate to ask straight
up if your plans are in alignment with the funder’s mission and goals.
Save yourself time by getting the answer to these questions right away,
so that your efforts will not be in vain.</li>
<li><b>Failure to establish
that your organization’s experience in this field has rendered contributions
to the community in the past -</b>The grantmakers look closely at an
organization’s track record before releasing grant monies to them
for the purpose of delivering a specific service. If you are looking
for funding to expand your Italian restaurant, don’t dwell on the
fact that your company runs the best Bingo game in town after hours. </li>
<li><b>Failure to establish
collaboration by making the critical mistake of asking for the total
cost of the project - </b>Grantmakers want to see collaboration on a
project, and they are more apt to be generous with their donation if
an agency is making a concerted effort to raise funds through its own
resources for the project. Don’t be afraid to mention that you
intend to fund the project through a number of financial sources, including
a small business loan</li>
<li><b>Failure to maintain
credibility by grovelling in the sand for the appropriation -</b>You
will lose all credibility if you beg for the funding, and you will lose
any chance you had of getting anything but a sullied reputation from
the grant appropriation process. </li>
<li><b>Failure to establish
a team presence and ownership - </b>
Don’t go it alone, if you can help it. If you have valued members
in your company, then develop a team in which all members have responsibilities.
In this way, each member will have some ownership in the project.
This includes the establishment of a grant committee to oversee the
project.</li>
<li><b>Failure to set
a timeline for the finalization of the project - </b>
It is vitally important that the Grant Committee set up and adhere to
a timeline for the development of the grant proposal. You don’t
want to be running around the last minute before the deadline frantically
searching for your business tax returns from the past three years, something
which once happened to me. You don’t want to be collating your
document a few hours before the submission deadline, and rushing to
the post office to get a postmark date fifteen minutes before the deadline
expires. </li>
<li><b>Failure to follow
the donor’s terms and deadlines - </b>
It’s not your ball, and it’s not your court. They belong to
the donor. Follow the grant instructions with great care, including
length of document, type and print requirements, and other varied and
sundry instructions. You do not want all your hard work going
down the drain simply because you went over the maximum length of the
application requirement.</li>
<li><b>Failure to prove
the immediate need of your project - </b>
Once again, you may feel that your grant will solve an immediate community
need. However, if others won’t support your project in word
and deed, through letters of support that you can include in your grant,
then you have not demonstrated the immediate need for your project.</li>
<li><b>Failure to demonstrate
the societal benefit from your project -</b> You must identify the societal
benefit that will be derived as a result of your project. For
example, by expanding your restaurant, you will be able to seat many
more customers, and, thus, you are fulfilling a societal need.</li>
<li><b>Failure to demonstrate
to the donors what benefit they will derive as a result of the donation
in terms of a lasting legacy for serving the greater good of the community
- </b>You know what you’ll be getting from the grant in terms of goods
and services, but you need to define succinctly what’s in the process
for the donor.</li>
</ul>
<h3>VII. Writing Your Business Grant</h3>
<p>Your business plan, described
in detail in Chapter IV of this section, is your key for obtaining the
funds you seek. However, if you are not able to convey your request
explicitly through the written word, then your efforts will be in vain.
You must give the grantors: <br></p>
<ul type="DISC">
<li>What they are asking
for</li>
<li>In the format they
require</li>
<li>Following the instructions
they give through their RFPs</li>
</ul>
<br>
<p>Once you have completed your
business plan, you can incorporate it into your business grant or loan
proposal.</p>
<p>SCORE (Service Core of Retired
Executives) offers the following summary checklist (excerpted from the
SCORE Model Business Plan template: </p>
<ul type="DISC">
<li>Business plans consist
of a narrative and various financial worksheets. The narrative is the
body of the business plan. Work through the sections in any order that
you like, except for the <i>Executive Summary,</i> which should be done
last. </li>
<li>When you finish
your first draft, you’ll have a collection of small essays on the
various topics of the business plan. Then you’ll want to edit them
into a smooth-flowing narrative. </li>
<li>The real value of
creating a business plan is not in having the finished product in hand,
but rather in the process of researching and contemplating about your
business in a systematic way. </li>
<li>The act of planning
helps you to research, examine all facts, and look at your proposed
project with a critical eye. Take the time to perform the preliminary
steps assiduously, and you’ll be avoiding critical mistakes later
on. </li>
</ul>
<p> </p>
<p class="sub" align="center"><b>The Grant
Proposal</b> <br> <br></p>
<p> Successful grant proposals
must contain these four elements:</p>
<ol type="1">
<li>Thoroughly planned</li>
<li>Well organized</li>
<li>Written in the terminology
that is used in the RFP</li>
<li>Concisely packaged</li>
</ol>
<br>
<p>Your first step is to carefully
read, and then re-read the RFP in order to ensure that you give your
potential grantors exactly what they want<i>. </i> You have to show them
why your business is<i> </i>the most qualified applicant to receive
their grant funds under that particular program. You must sell your program
to funders, and they must buy the sale hook, line and sinker. <br>
</p>
<p>You will find many common requirements,
procedures, and forms among the thousands of RFPs you review. Because
there are many variations and requirements from RFP to RFP, you must<i> </i>
carefully read and understand the grantor’s specific instructions
contained in every RFP. <br></p>
<p>Agencies use both standardized
federal forms as well as their own forms, with their own specialized
lists of required procedures, format and content requirements.
Some forms pose questions while others ask for responses in narrative
form. <i> </i> <br></p>
<p>Follow the rules and directions
exactly as explicitly detailed by the funding source. Be sure to address
each requirement in your proposal. If you do not follow the rules and
meet the criteria you will likely be denied regardless of your proposal’s
merit, worthiness, or quality.</p>
<p> </p>
<p><b>Helpful Hints for Grantwriting</b> <br>
</p>
<ol type="1">
<li><b>Be attentive
to the RFP – </b>Grantors know what they are looking for, so be sure
you give them exactly what they are asking for in their RFPs.
Comply with their directives without divergence.</li>
<li><b>Review the grantor’s
evaluation criteria – </b>By looking to this portion of the RFP, you’ll
be able to determine the needs and priority areas of the RFP.
When it comes time to write the proposal, you will be armed with this
information, and you’ll be able to emphasize these areas.</li>
<li><b>Convince the
grantor that your option is the best option - </b>
By demonstrating to the potential funder in measurable terms the benefits
that will be derived from selecting your proposal, you’ll be able
to show that your proposal will be a good investment for the grantor’s
money in order to achieve the goals of the funding source. </li>
<li><b>Demonstrate the
methodology in which you will deliver the grantor’s needs and priorities
-</b> You can do this by comparing the mission and objectives of your
organization to those of the grantor.</li>
<li><b>Include Your
Evaluation Plan – </b>Be sure to include the tools you will use to
measure the success of your project, and to use these tools to make
the necessary adjustments to improve the delivery of your project. </li>
<li><b>Prepare Rough
Drafts –</b> You will need to prepare your proposal in stages, so
you will have to write several drafts before you can craft a final document.</li>
<li><b>Don’t Go It
Alone –</b> Seek assistance from others as soon as the need is apparent.
People can help prepare and write certain areas of the grant within
their sphere of expertise. </li>
<li><b>Be Mindful of
the 4 Crucial Elements of a Grant Proposal
–</b> Always refer back to the four key elements of a grant proposal
(listed above) in order to craft a winning proposal.</li>
<li><b>Have Several
People Review the Final Draft –</b> It is wise to get objective opinions
from people who had nothing to do with writing the proposal. You
will extract from these individuals the unbiased perspective of someone
outside your team who can give you feedback to help make certain areas
clearer and more easily understood.</li>
</ol>
<br>
<p><b>DUNS Numbers</b> <br>
</p>
<p>If you apply for a federal
grant for your business and your business is not a sole proprietorship,
you must have a DUNS number. The government uses this unique, identification
number to identify grantees that receive funding under government grants
through their electronic grant application system. Once you have obtained
a DUNS number, you will use it for all your federal grant applications. <br>
</p>
<p>DUNS numbers are free, and
can be obtained by simply logging onto the government website at <a href="http://www.ggrants.gov/" target="_blank"><u>www.Grants.gov</u></a>, and follow the instructions. If you
already have a DUNS number, make sure it is updated and validated and
use it. <br></p>
<p><b>Protect Your Privacy
with a DUNS Number</b> <br></p>
<p>Once you obtain a DUNS number,
you are automatically included on Dunn & Bradstreet’s (D&B)
marketing list,<i> </i>which it sells to other companies for commercial
purposes such as direct mail and telemarketing. If you do not want your
name or business name included in such marketing you must specifically
ask to be removed from D&B’s marketing file<i>.</i> <br>
</p>
<p><b>Initial Preparation</b> <br>
</p>
<p>Your initial steps in preparing
a grant proposal should include the following: </p>
<ul type="DISC">
<li>Make a checklist
- This list should include the guidelines and instructions
as outlined by the grantor in the RFP. These are the missions
and goals of the grantor’s organization, mission statements, goals,
objectives, timeline parameters, and other pertinent matters.</li>
<li>Consider delegation
– Now is the propitious time to delegate particular assignments and
responsibilities.</li>
<li>Formulate a team
– You will need help, so you should form a proposal team to collaborate
with you on effecting the proposal, including, but not limited to, research
and writing of certain sections of the proposal. </li>
<li>Start a notebook
– In this way, you can jot down ideas which may be useful later on
in the process.</li>
</ul>
<br>
<p><b>Grant Proposal Preparation
Checklist</b> <br></p>
<p>Once you have the ideas and
items for your checklist, it is time to formalize your proposal preparation
checklist. Itemize your proposal preparation checklist to include all
duties that you need to complete in order to present a thoroughly prepared,
well written organized, concisely packaged grant proposal:</p>
<ol type="1">
<li><b>Use the Same
Terminology as the Grantor’s RFP</b> – There may be certain terms
that the grantor uses to describe the people who will be served, or
the goals and objectives of the grant. Be sure to use terms consistent
with the RFP.</li>
<li><b>List all RFP
Requirements </b>– These should include instructions, format and format
specifications.</li>
<li><b>Develop Your
Proposal Team </b>– Match your team members with their areas of specialization
so that they can assist you in developing strategies and identify possible
problem areas and issues.</li>
<li><b>Make Staff and
Volunteer Assignments </b>– Assign your personnel according to their
abilities and areas of strength. </li>
<li><b>Align the Mission,
Goals and Objectives </b>– Start to correlate how the project fits
into your organization’s mission statement, and how it aligns with
that of the grantor. </li>
<li><b>Start to Prepare
Staff Resumes </b>– Take the time now to prepare resumes for your
team members.</li>
<li><b>Project Comparison </b>
– Take the time now to compare your proposal to another similar undertaking. </li>
<li><b>Document Retrieval </b>
– Make a list of all documents listed in the grantor’s RFP that
you’ll need.</li>
<li><b>Cover Page </b>
– Prepare the cover page, which will include grantor’s name, address,
the solicitation date and the due date for the proposal. If the submission
is electronic, then simply follow the instructions on the application
on the grantor’s website. </li>
<li><b>Review All Aspects
of the Proposal </b>- Review all aspects of your proposal for spelling,
grammatical and calculation errors. Make sure that the proposal has
a professional appearance, including headings, subheadings, and correct
font and size, as specified in the RFP. Electronically submitted proposals
may require electronic signatures. </li>
<li><b>Proposal Review
from an Outside Source </b>– Enlist the services of someone who has
no direct tie to the proposal so that you can elicit an objective view
of the proposal with suggestions for improvement.</li>
<li><b>Use the Proper
Format - </b>Make sure that you submit your grant proposal in the required
format and via the required method, electronically if necessary. </li>
</ol>
<br>
<p><b>Request for Proposal (RFP)</b> <br>
</p>
<p>It is imperative that you understand
the instructions of the RFP and that you can meet all the requirements
and specifications of the RFP. If you don’t, you run the risk of having
your proposal denied even before it has been reviewed. <br>
</p>
<p><b>Components
</b> <br></p>
<p>The major components of the
RFP are as follows: <br></p>
<p><b>Formatting Instructions: </b>
The RFP contains explicit instructions on formatting the proposal. Each
RFP may be different than the next, so pay particular attention to the
formatting directions in the RFP. <b> </b>
The formatting instructions will apply to: Page limitations; type of
paper used; single or double-sided print; type face and font size; the
contents of each page; the number of copies to be submitted in addition
to the hard copy; and other similar details. </p>
<p><b>Evaluation Criteria and
Methodology: </b>The grantor numerically evaluates each proposal. The
RFP will inform you of the grantor’s scoring system. Note the numerical
value of each section, so that you’ll be able to determine the degree
of importance of each section to the grantor. The closer your proposal
matches the grantor’s criteria, the better your chances are of securing
the funding you seek. </p>
<p><b>Background or Introduction: </b>
The section contains the clues and insights into what the grantor thinks
is important information concerning the project you are proposing. By
“reading between the lines,” you’ll be able to detect what the
grantor really is looking for as a result of funding the project. </p>
<p><b>Scope of Work or Service: </b>
The grantor will tell you what needs to be done and how to do it. If
the RFP lists the scope in a numbered or sequential order, then your
proposal needs to follow suit. The scope of the project will allow you
to delve into the mindset of the funding source to increase your chances
of reiterating the wishes of the grantor in the proposal, but in your
own words. </p>
<p><b>Performance Specifications: </b>
While the specifications might seem overly technical and detailed, they
can make or break your chances for a successful grant proposal. Do yourself
a favor and review the specifications prior to filling out the application,
and do it once more when your proposal has been completed. </p>
<p><b>Deliverables: </b> These
are your expected results, that is, the goods and/or services that the
grantor expects you to deliver for the money given to you. If your proposal
is to provide for a specific product, such as design drawings, you will
find the specifications for this product outlined in this section of
the RFP. If you are providing a service, it may include the grantor’s
criteria that will determine when you have performed the service successfully
up to the grantor’s expectations. After reviewing the deliverables
section of the RFP, you might want to reconsider your application for
this grant. You may believe that the grantor is asking for too much,
too little, or even the wrong set of products or services from you.
If so, there may be a genuine misunderstanding about your proposal or
the RFP itself. Now is the time for you to think about withdrawing your
interest in this matter, and search for other grant opportunities. </p>
<p><b>Schedule: </b>
The grantor informs you of how and when<b> </b>
the project work is to be completed. It also gives you an opportunity
to re-evaluate your suitability with the funding source. You must make
a determination if you can complete the project within the stated parameters
of the grantor. Any major discrepancies in time between the two parties
should send up a red flag. You may need to consider halting progress
on this grant to pursue other options. </p>
<p><b>Data Requirements List: </b>
The RFP Data Requirements List identifies all the required data, including
a description of each item, the due date, who will review the data and
the documents you need to prepare, and the cost of preparing them. </p>
<p><b>Contract Requirements: </b>
This section contains a great deal of legal terminology, but it is necessary
for you to work your way through this section as best you can, or secure
the assistance of someone who is more familiar with the terminology. </p>
<p><b>Acquire a DUNS Number: </b>
All federal grant applicants, except individuals who are sole proprietors
of a business, require a Data Universal Numbering System (DUNS) number.
The federal government utilizes this unique, nine-digit number from
Dunn and Bradstreet (D&B) to identify organizations that receive
funding under government grants, and to ensure that they provide consistent
information in their electronic grant application system. If you need
a DUNS number, simply log onto <a href="http://www.dnb.com/" target="_blank">www.dnb.com</a>,
and click onto the tab for “Request for a DUNS Number.” If your
organization has multiple DUNS numbers because of multiple organizational
branches, identify a point person in your organization to handle all
DUNS requests. <br></p>
<p><b>Sections of the Grant Proposal</b> <br>
</p>
<p>Grant proposals basically consist
of the same format, regardless of the request. It is of primary importance
for you to be cognizant of what needs to be included in each section.
This is the heart of the grant writing matter. You’ll need to set
your proposal apart from the other submissions, and your grant proposal
is the vehicle to achieve this outcome. </p>
<p><b>1. </b> <b>Executive Summary</b>:
Also known as the cover letter, this is your initial opportunity to
sell yourself and your idea to the grantor. Take advantage of this by
making a good first impression. Your cover letter should be concise,
well written and easy to understand. You can summarize your proposal
in a few paragraphs. A long-winded detailed letter may place your proposal
in jeopardy before the body of it is even reviewed. Some grantors have
a multi-level evaluation system, and they may review only these cover
letters or summaries during the initial review stage, so it is imperative
for you to do an outstanding job on this letter. </p>
<p><b>2. </b> <b>Table of Contents</b>:
This is a complete listing of all contents of the proposal, including
attachments and their respective page numbers. Below is an example of
a grant proposal Table of Contents: </p>
<p><b> </b>
Executive Summary Page 2 </p>
<p> Summary <WBR> Page 3 </p>
<p> Introduction <WBR> Page 3 </p>
<p> Problem Statement Page 4 </p>
<p> Objectives <WBR> Page 5 </p>
<p> Project Description <WBR>
Page 6 </p>
<p> Evaluation <WBR> Page 7 </p>
<p> Future Funding <WBR> Page 8 </p>
<p> Budget/Narrative <WBR> Page 9 </p>
<p> References Page
10 </p>
<p> Letters of Support
Page 11 <br></p>
<p>With business grants, your
business plan would follow the Executive Summary, page 3, and cover
all areas from the problem statement page through the budget narrative.</p>
<p><b>3.</b> <b>Introduction:
</b>This is the section in which you explain how your proposed project<b> </b>
meets the needs of the grantor as stated in the grant’s RFP. </p>
<p><b>4.</b> <b>Project
Summary: </b>In the RFP, the funding source has stated goals,
objectives, and exactly what it wants to receive from you. In
this section, you have to communicate in the required format how your
goals and objectives meet the grantor’s needs. It may be beneficial
for you to write the summary last after you have completed the other
portions of your proposal. This will ensure that you include all
the key points that are necessary to communicate your project objectives.
Make sure that you identify your objectives and the method in which
you intend to achieve them. These objectives must be realistic
and you must use measurable, verifiable objectives when you refer to
a problem statement, your specific objectives, and the results of these
activities. It should be noted that your objectives will be the
basis for evaluating the progress and success of your undertaking. Then,
describe your expected desired results upon receiving the grant funding. </p>
<p><b>5. Problem Statement:
</b>In this section, you will explain the need for your project, and
show how your project matches the grantor’s funding priorities.
The needs assessment is a clear, concise and well-supported statement
of the problem to be addressed. Collect information regarding
the problem by conducting formal and informal needs assessments for
a program in the target area. The information should be factual
and directly related to the problem addressed by the proposal.
Some of the areas that require documentation are:</p>
<ul type="DISC">
<li>The reason for the
development of the proposal</li>
<li>Identification of
the beneficiaries, and exactly how they will derive benefits</li>
<li>The social and economic
costs of the project</li>
<li>Evidentiary proof
concerning the nature of the problem that the project will address.</li>
</ul>
<p><b>6.</b> <b>Project Description:</b>
In this section, you will detail your methodology for accomplishing
the goals, objectives and mission described in your proposal.
Remember to include all major project events and issues, as well as
special considerations, budget requests, or technical matters which
are identified by the grantor in the RFP. </p>
<p><b>
7. </b> <b>Management Plan for Business and Non-Profit Organizations: </b>
In this section, you will identify key agency personnel and their responsibilities,
job descriptions, professional biographies and accomplishments, education,
and the previous experience they have in similar projects.</p>
<p><b>8.</b> <b>Documentation
and Evaluation Plan: </b>In this section, you will detail your
project plan and the expected results. You’ll need to demonstrate
how you will utilize the grant money to maximize the success of the
project. Additionally, you’ll need to describe your evaluation
process as a measurement tool for the success of the project, including
benchmarks and a schedule of major reports and evaluations. </p>
<p><b>9.</b> <b>Project Budget: </b>
In this section, you will need to justify your plan to spend the grantor’s
money in a descriptive narrative. You’ll need to also justify
your expenses and show a consistency with your proposal narrative.
The chief areas are:</p>
<ul type="DISC">
<li>Salaries</li>
<li>New Staff Hires</li>
<li>Additional Space
and Equipment</li>
<li>Any Indirect Costs</li>
<li>Any RFP Matching
Costs</li>
</ul>
<p>Your total direct cost is the
total of all your budget expenses. Your overhead costs include
direct, indirect and fringe benefit costs. When you list and describe
project costs, be sure to include the following:</p>
<ul type="DISC">
<li>Fringe Benefits</li>
<li>Travel Expenses</li>
<li>Construction/Renovation</li>
<li>Supplies</li>
<li>Material Costs</li>
</ul>
<p>In your budget justification
narrative, explain which goals and objectives will require major costs.
Whenever possible, provide line item budget totals and explain any amounts
that may appear to be inconsistent with other budget items. A
computer spreadsheet can facilitate this presentation. Differentiate
between “allowable” and “restricted” costs. Don’t forget
to include equipment, materials, and supplies, capital expenses and
contract services. Then, calculate your total costs and determine
whether or not they fall within the budgetary constraints of the RFP.
If you require further clarification in any of these determinations,
review the federal guidelines regarding cost principles and compliance
with federal requirements. </p>
<p><b>10.</b> <b>Chronological
Timeline with Key Milestones: </b>
Review all key deadlines in the grantor’s RFP, and match your project’s
deadlines precisely with those of the RFP. Make sure that you
also note the dates for major reports and project evaluations.
Your planned timeline should include dates for reaching your project
goals, major reports, evaluations, and any other requirements specifically
outlined in the RFP or elsewhere.</p>
<p><b>11. Sustainability: </b>
This section is very important to grantors who want to be sure that
the project will have a life after the grant funding has dissipated.
You will need to account for future funding as well as anticipated expenditures
in this section.</p>
<p><b>12.</b> <b>Letters
of Support: </b>Your project will benefit immensely from letters of
support. Letters of support from sister non-profit organizations,
political leaders from the state, locally-based officials, and elected
representatives will bolster the weight of your proposal immeasurably.</p>
<p><b>13.</b> <b>Credibility Statement: </b>
This statement is the heart of your proposal because it addresses the
reason why the grantor should fund your program. The RFP will
require you to describe your organization’s operations to establish
your credibility. Incorporate the history of your organization
as well as its present standing in the proposal, including a brief biography
of the organization, its Board of Directors, and key staff members.
Describe your organizational goals, philosophy and track record with
other grantors, and any other information that supports the credibility
of your organization’s ability to deliver the project.</p>
<p><b>14</b>. <b>Appendix: </b>
This section should contain the following items and information:</p>
<ul type="DISC">
<li>All Referenced Documents</li>
<li>All required Forms</li>
<li>Names and information
about the members of the Board, trustees, directors and advisors</li>
<li>Letters of Support</li>
<li>Organizational Chart
or Business Plan</li>
<li>Surveys, Test and
Questionnaire Results, including Needs Assessments and Evaluation Methodologies</li>
</ul>
<p><b>15</b>. <b>Bibliography: </b>
In this section, list your sources and resources, including any publications
or reports that you referenced or used in the body of your proposal. <br>
<br></p>
<p class="sub" align="center"><b>Criteria
for Your Proposal</b> <br></p>
<p>As you commence with the actual
writing of the proposal, get in the practice of proofreading everything
that you write. There is a truism that good writing will not save
a bad idea, but that bad writing can kill a good idea. Once your
proposal makes it past the preliminary evaluations, it is then subjected
to further screenings by the grantor. </p>
<p>Make sure that your proposal:</p>
<ul type="DISC">
<li>Addresses an important
issue, need or problem that requires an immediate remedy.</li>
<li>The proposed remedy
produces tangible, useful and measurable results. </li>
<li>Your proposal offers
the best solution to the problem in comparison to others. </li>
<li>Your proposal provides
sufficient information to support your ideas. </li>
<li>Your proposal clearly
describes the work to be done that is necessary to produce the expected
results. </li>
<li>Your proposal explains
your evaluation plan to measure the success of your project. </li>
<li>Your proposal demonstrates
your knowledge of prior attempts on the part of others to address this
problem. </li>
<li>Your proposal is
different from previous attempts to address this problem. </li>
<li>Your proposal demonstrates
a consideration for cost-effectiveness. </li>
<li>Your proposal contains
cost-reduction strategies. </li>
</ul>
<p class="sub" align="center"><b> Justifications
for Grant Denial</b> <br></p>
<p>The main reasons why funding
sources reject grant proposals are as follows: <br></p>
<ul type="DISC">
<li>The proposal does
not follow the RFP grant format submission requirements.</li>
<li>The proposal does
not clearly answer any or all the areas addressed in the RFP.</li>
<li>The proposal requests
more funds than are provided for in the RFP.</li>
<li>The proposal does
not clearly describe the problems, project goals, solution, and/or how
they will be achieved.</li>
<li>The proposal lacks
a history of accomplishments or related work in the field on the part
of the grant seeking organization. </li>
<li>The proposal requests
funds for a project that is typically not funded by the grantor.</li>
<li>The proposal is
poorly presented and articulated.</li>
<li>The proposal lacks
sufficient details or new ideas.</li>
<li>The proposal does
not demonstrate that the grantseeker has enough experience, resources
and/or tools to successfully complete the project.</li>
<li>The proposal omits
important information that is required in the RFP.</li>
</ul>
<h1>Federal Grants</h1>
<h3>Applying Online for a Federal Grant</h3>
<p>As of April, 2009, all Federal
grants must be applied for and submitted electronically through the
federal government’s website portal, <a href="http://www.grants.gov/" target="_blank"><u>www.Grants.gov</u></a>. When you access the Funding
Opportunity Number or the CFDA Number pertaining to your selected grant,
you can use either number to begin the grant process by downloading
the application package at <a href="http://www.grants.gov/" target="_blank"><u>www.Grants.gov</u></a>. <br></p>
<p>Before you can access an application
for federal funding, however, you must first register with <a href="http://www.grants.gov/" target="_blank"><u>www.Grants.gov</u></a>. If you are simply researching
for grants on that site, it is not necessary for you to register. <br>
<br></p>
<h3>Registering For Grants at <a href="http://www.Grants.gov" target="_blank">www.Grants.gov</a></h3>
<p>Depending on whether you are
submitting your grant application as a business or as an individual,
there are different methods for registering at Grants.gov. Make
sure that you register according to the format for your type of grant
application. <br></p>
<p><b>Organizations and Businesses: </b>
You should be aware that the registration process with <a href="http://www.grants.gov/" target="_blank"><u>www.Grants.gov</u></a> can take several weeks to confirm
and complete. If you do not complete all steps properly, the process
could extend even longer. The steps involved in the registration
for businesses and organizations are as follows:</p>
<ul type="DISC">
<li>New businesses must
have an Employee Identification Number (EIN) from the IRS in order to
complete the Central Contractor Registry (CCR). Your request for
the EIN from the IRS could take as long as eight weeks to process, so
apply for the card at least two months before the deadline on your grant
application.</li>
<li>Receive an Authorized
Organization Representative (AOR) designation from your organization
so that you will be identified in the system as the contact person on
your grant. This designation is called your agency’s E-Business Point
of Contact (POC). You are then eligible to submit grant applications
in behalf of your organization, agency or business. The POC is
a protection against unauthorized grant submissions on the organization’s
behalf. The POCs are based on DUNS Numbers; if your agency has
one DUNS number, then they have only one POC. If they have more
than one DUNS Number, then they have the same number of POCs.
It should be noted that your POC is necessary for registration with
the CCR. At that time, you will be assigned a special password,
called the Marketing Partner Identification Number (MPIN), and you will
have sole authority to designate which of your staff members are permitted
to use <a href="http://www.grants.gov/" target="_blank"><u>www.Grants.gov</u></a> to submit grant applications electronically.</li>
<li>Register your organization
online at <a href="http://www.grants.gov/" target="_blank"><u>www.Grants.gov</u></a>.</li>
<li>Register yourself
as your organization’s Authorized Organization Representative (AOR).
Once you are registered as an AOR, you can enter the specific grant
of interest’s Funding Opportunity Number and click REGISTER.</li>
</ul>
<br> <br>
<h3>Checklist for Business Registration at <a href="http://www.Grants.gov" target="_blank">www.Grants.gov</a></h3>
<p>To ensure that your registration
process is smooth, use this checklist as a guide:</p>
<ul type="DISC">
<li>I have my organization’s
DUNS number.</li>
<li>I have registered
with CCR.</li>
<li>I have my E-Business
POC.</li>
<li>I have registered
with the Grants.gov Credential Service Provider, ORC.</li>
<li>I have used both
my username and password to register with Grants.gov.</li>
<li>I have secured access
to Grants.gov.</li>
<li>BEGIN the REGISTRATION
PROCESS</li>
</ul>
<br>
<p>After you have registered on <a href="http://www.grants.gov/" target="_blank"><u>www.Grants.gov</u></a>, you will receive a Grants.gov username
and password in order to log in. After logging in, click the “Manage
Profile” link. At that point, your status will read “AOR-request
sent” or “AOR-Approved.” You may only submit your grant
applications when the tab reads “Approved.” If you have a
problem getting approval, contact your agency’s POC, who will have
to utilize the DUNS and MPIN numbers to log in and approve you as an
AOR. You will receive e-mail confirmation of your approval, and
then you can start the process again and file your grant application. <br>
<br></p>
<h3>Individual Registration</h3>
<p>Individual applicants must
also register and create a Grant.gov account. As in the case with
organizations, you start an individual registration with Grant.gov by
clicking onto the “Credential Provider” tab. As an individual,
you can only submit grant applications for yourself, and you can apply
only for the grants that are open for individuals on Grants.gov.
You can not register representing an organization, institution or governmental
agency. Grants.gov will reject any grant application package that
is intended for organizations or other entities if it is submitted by
an individual. <br></p>
<p>The process for registering
as an individual on Grants.gov is as follows:</p>
<ul type="DISC">
<li>Register with the
Credentials Provider.</li>
<li>Obtain a password
and a username from the Credentials Provider.</li>
<li>Create an account
with Grants.gov.</li>
<li>Apply for the grant
using that grant’s Funding Opportunity Number.</li>
</ul>
<h3>Application Process through Grants.gov</h3>
<p>Once you have registered and
have received your username and password, it is a simple four step process
to apply for a grant on Grants.gov: <br></p>
<ul type="DISC">
<li><b>Download the
Grant Application with Instructions: </b>
You can download the application for a particular grant by utilizing
the Funding Opportunity Number or CFDA Number. If you don’t
remember the number for that particular grant, go back to the “Find
Grant Opportunities” section to locate the number. Then, return
to the screen page and enter the number.</li>
<li><b>Complete Your
Grant Application Package:</b><b> </b>Once you have downloaded the application,
you can complete it either online or offline. Follow the grantor’s
instructions that come with each application package. Be sure
to save all information as you progress in completing the application
packet. Grants.gov does not save your work, so you must be mindful
to save the work yourself.</li>
<li><b>Submit a Completed
Application Package:</b><b> </b>As with most federal grants, the site
of Grants.gov will not allow you to submit an incomplete grant application
package. You must be sure that you complete all required forms,
attach all required documents, and save your completed application package.
Then, review your application package and submit it using your password
and username. Grants.gov will then forward your grant application
to the correct agency and grant funding opportunity. If you have
any problems at this point, see Grants.gov’s “Frequently Asked Questions”
on the website. Also, make sure that e-signature requirements
of the grant have been fulfilled. If everything is ready to be
forwarded, click on the “Sign and Submit” tab in order to upload
your application package. You will receive confirmation once your
application has been uploaded. You will also note a Grants.gov tracking
number, along with the date and time of submission. Jot this number
down so that you can refer to it if you need to contact the Grants.gov
Customer Support.</li>
<li><b>Track Your Application
Status: </b>Once your application has been submitted, you can
keep track of its progress as it negotiates its way through the application
and review process. Simply click onto the “Track My Application”
page on the Grants.gov website, and you’ll be able to mark its progress.</li>
</ul>
<br> <br>
<h3>5 Reminders When Using Grants.gov</h3>
<p>Here are 5 reminders when using
the Grants.gov website to apply for federal funding:</p>
<ul type="DISC">
<li>All usernames and
passwords are case sensitive. It would be best if you had both
your username and your password in lower case.</li>
<li>Before clicking
onto the “Submit” button, make sure that you have completed all
required fields in the grant application, and have moved them into “Mandatory
Completed Documents for Submission” box.</li>
<li>Click onto the “Save”
button after all documents have been moved to the “Mandatory Completed
Documents for Submission” box.</li>
<li>Make sure that you
have completed all required fields in all optional forms, and have moved
them also to the “Mandatory Completed Documents for Submission”
box.</li>
<li>Make sure that you
have closed all Internet window browsers.</li>
</ul>
<br>
<p>Additionally, Grants.gov offers
“Application Submission Tips” and “Submit Application FAQ” with
answers to questions that often arise when you are using the online
system.<br></p>
<h3>Applying for Grants Directly to Federal Agencies</h3>
<p>Some agencies do allow you
to submit your grant proposal directly to the agency. For example,
the U.S. Department of Homeland Security allows direct submission of
its firefighter and first responder grants directly through its website
and on its website application. Another agency that follows this
protocol is the Environmental Protection Agency (EPA). The EPA
allows you to directly submit your grant proposal through a Grant Application
Kit that you must request. After you request the kit, the EPA
sends you a response of acknowledgement of your request, with a link
at the end of the acknowledgement to a grant application which must
be submitted electronically. <br></p>
<p>Before you submit any federal
grant proposal, review the current grant submission requirements which
are posted on the website of each federal agency. You can also
link to <a href="http://www.grants.gov/" target="_blank"><u>www.Grants.gov</u></a> for submission information for every
federal agency. </p>
<h3>Federal Grant Submission Guidelines</h3>
<ol type="1">
<li>Make sure that you
follow the grantor’s current instructions, directions, rules and requirements
for that particular grant.</li>
<li>Make sure that you
have edited, proofread, and correctly referenced all the material in
your grant proposal.</li>
<li>Double check your
mathematical computations, and check that the correct figures are being
presented. A typo in this area could have disastrous results.</li>
<li>Follow all current
and active requirements, including, but not limited to, electronic submission,
word and character limitations, font specifications, etc.</li>
<li>Make sure you have
shown how your plans align with the grantor’s goals and priorities.</li>
<li>Select one person
to be your primary grant writer. Others can contribute collaboratively,
but your project needs to have a single and purposeful focus in its
presentation.</li>
<li>Keep the grantor’s
mission in mind at all times when framing your proposal.</li>
<li>Write and rewrite
your grant and parts therein as often as it takes for you to be able
to effectively communicate your plans. It is on this merit that
your grant proposal will either sink or swim.</li>
<li>Double check to
ensure that you have covered all areas of the RFP in your grant proposal.</li>
<li>Don’t hesitate
to call on agency’s program directors with any questions that you
have concerning their operations or intent in the RFP.</li>
<li>Utilize the agency’s <i>
Fast Lane</i> program if requested to do so.</li>
</ol>
<br>
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