How to get a grant for individual entrepreneurs? Small Business Grant Support: How to Get Financial Assistance

How to get a grant?

Fundraising. Sponsors. Funds. Donors. Charity organisations. Where to start and how much to ask? How to draw up a project, estimate, application.

This is not an exhaustive guide. These are sketches from nature. But they can be useful for novice grant seekers, because out of five funding applications submitted on behalf of my firm, I ended up with three grants totaling about $50,000. Not a million, but still.

Strictly speaking, fundraising, which means finding and receiving sponsorship money, is a real science. A myriad of offices and individuals live (and how they live!) Only on grants. From a primitive begging for money “for a good cause”, foundation raising has turned into a powerful area of ​​business with its own rules of the game, in which this very “good cause” is in last or penultimate place.
Benefactors

More than once I told the representatives of foreign philanthropic structures I knew that they should thank God for the collapse of the USSR, because in addition to the developing countries they already had, they received fifteen more at once. More countries that need help - more foundations and associations are opened, more money is spent on the maintenance of their numerous employees.

Where does the money come from?

First, from state budgets, that is, from the pockets of American, British, German, French taxpayers.

Secondly, from the bottomless budget of the UN, which then flows like full-flowing rivers and streams over hundreds of UN departments, programs and projects. And this is partly the money of domestic taxpayers, because each country makes contributions to the UN budget.

Thirdly, from individuals and corporations (primarily American ones), who have a choice: pay taxes or send the same money to a “good cause”.

Around these money sources, tens of thousands of already “charitable” competing organizations are fighting for their piece of the charity pie. For example, huge sums annually from the US budget to specialized structures like USAID are then redistributed to public, private or semi-private foundations that have been able to prove that they will make the best use of the funds received.

And now these funds directly help Zimbabwean farmers, Tajik children, environmentalists from Karelia, small businesses in the Sverdlovsk region, etc., having previously provided their people with:
- salaries ($3,000-10,000 per month for foreign employees, from $200 to $1,000 for local employees);
- good houses and apartments (for rent);
- solid offices;
- official cars;
- funds for hospitality expenses (restaurants, paying for a taxi, visiting swimming pools, fitness centers, etc.);
- free flights home at least twice a year;
- and other, other, other.
The remaining money is to be distributed among the natives-grant seekers.

And, characteristically, philanthropist employees work in the former Soviet republics, in backward African and Asian countries for 5-7 years and do not want to return to their capitalist prosperity.

Why?

Because only in foreign offices of charitable foundations, and even consulting companies, you can see such a number of people who in their homeland could not even claim half the salary - because of their complete unsuitability.

Because foreigners live in a closed comfortable world, regardless of the poverty of the country and its location. And since life in such countries is cheap, they can afford not only to live several times better than in a prosperous but expensive homeland, but also to save a fair amount for old age.

Because such work is a guarantee of a quick career in business or government.

Once, back in the early 90s, an American 22 years old showed me his “dossier” about his work at the Price Waterhouse representative office, I think, in Kyrgyzstan. Taking advantage of the ignorance of the Americans in relation to everything that does not concern their great country and a similar ending - "stan" - with Afghanistan, he prepared a report telling about his participation in 16 (!) Projects in six months, and in conditions close to the front.

He explained to me then that now such a heroic and hardworking guy will be hired by any prestigious company.

Therefore, one of the forms of corruption in foreign government agencies that distribute money between philanthropic organizations is the placement of their acquaintances and relatives to work in underdeveloped countries.

Local employees are again recruited mainly from the children of high-ranking officials, which is an unspoken condition for permission to engage in charity work in the territory under their control.

I made this long introduction for the sole purpose of showing that before you are not kind foreign uncles and aunts, but cunning guys who earn huge money on the fact of our existence. With the exception of a small number of sincere enthusiasts, employees of foreign foundations - both local and foreign - are deeply indifferent to your projects. Knowing this, you will not be surprised by some features of communication with philanthropists and will not waste time on unnecessary body movements.

Where to begin?

First. You find a fund in your city (region) that finances topics that are close to your profile.

Second. Carefully study the information about the nature of the grants provided, their size and to whom they are allocated - only to commercial organizations, only public, only private individuals, etc.

In principle, you can specifically come up with a project for the appropriate fund or direction, but this does not always work. Funds are interested in your "track record", and if an environmental organization suddenly asks for money to create a business incubator, then the answer is likely to be negative.

But on the other hand, under the "grant theme" you can create a new public organization. This is normal and even welcome, especially if you are targeting an American fund that funds "democrats" and "human rights activists." Such organizations are registered in 10 days, so if they fail, there is little loss of time.

Having clarified the main question, namely, whether your topic falls within the declared interests of a particular fund, prepare an application in strict accordance with the requirements of the fund.

How much to ask?

In fact, grant-giving organizations themselves are interested in the uninterrupted issuance of the maximum possible number of grants. The traditional Soviet approach of the late stagnation: it is required to fully "master" the funds allocated for the year, otherwise, less will be allocated for the next year. And this will directly affect the level of salaries and bonuses of functionaries of charitable organizations.

But the first time you won't get much money. Therefore, make an estimate based on actual needs, bearing in mind that this estimate will still be reduced by a third, or even more.

Do not treat a potential grant as some kind of personal capital. Let's say you ask for (and receive) $25,000 to monitor human rights in your city. So, do not tune in to the fact that you can put these 25 thousand in your pocket.

After all, the grants are allocated not entirely, but in parts, tranches. First, you will receive 5-7 thousand for the first stage of the project, and only after reporting for their use, you can count on the next portion.

Popular question: In principle, is there a chance to spend part of the funds received personally on yourself? It depends on how you budgeted the project.

Let's assume the total grant is $15,000 for one year. If you plan to buy computers and office equipment for $5,000, then you will have to forget about this money right away, because most of the funds prefer to pay these expenses directly from their account.

At best, you can hope for a percentage from the seller, but it will not be much money, because donors are usually guided by local prices and it is difficult to explain to them why you decided to pay five hundred dollars for a $200 monitor.

The same applies to the purchase of stationery and consumables.

Real money, that is, cash, is the salary of project employees. If you are a project manager (director of a firm, head of a non-profit organization), and this project needs attracted employees, then the usual practice is to do the work with two people, and ask for money for ten.

Of course, eight dead (and trusted) souls must properly sign their payrolls.

Another option is to pay employees salaries in smaller amounts than indicated in the estimate.

I believe that for a commercial organization it is most reasonable to consider a grant as funds that fell from the sky, with which you can purchase equipment necessary for business, pay salaries to employees, compensate for communication costs, consumables, stationery, etc.

To clarify: you spend 70-90 percent of the grant on the development of your own organization, and you carry out the project for which you were given money along with your main work.

For example, you have a marketing firm and need three account managers. And these are jobs (computers, printer, Internet), wages and other expenses.

You come up with a project on a popular topic related to the promotion of start-up entrepreneurs, for which you certainly need technical equipment and involved people.

After receiving a grant, you imitate a stormy job. But do not be too zealous, otherwise aspiring entrepreneurs, having heard about your project, will really turn to you for help. Do you need it?

In the standard budget of any project there are mandatory columns:

A good tone is when in the “Available” column you indicate that you have at least a little, but your own money, which means that you are not some kind of ragamuffin (or a poor structure that does not inspire confidence), but are ready to participate in financing your own project .

Such generosity, by the way, will not cost you a penny, because the same “permanent assistant” is your own employee, to whom you pay a salary anyway, and the Pentium-troika was bought two years ago.

Terms of consideration of the application

If you read in a charity brochure that it takes two or three months to process an application, don't believe it. You can be fooled for half a year, and a year.

The reasons for the delays are very different: staff reductions, management changes, the holiday season, a large number of applications.

Reasons for refusals: the topic does not correspond to the main activities of the fund, duplicate applications have been submitted, your application is incorrectly formatted, you asked for too much money, you asked for too little money (donors don't want to get involved with projects that are too small).

And once, my already approved project was the victim of a global budget crisis in the United States, when congressmen suddenly decided to cut aid to developing countries.

The most unpleasant thing about working with funds is just mediocre waste of time.

You spend a month looking for a suitable grantor, then a month you study their requirements and draw up an application, estimate, justification.
Then you wait - it is not known how long and without a guarantee of a positive answer.

I stopped working with donors for this very reason. When a year later you receive a letter with a joyful message that the project has been approved, it is sometimes difficult to understand what it is all about, because for half a year you have been doing completely different things. And the question arises: to take or not to take?

It seems like a sin to refuse money, but, on the other hand, interest in the project has long disappeared, sometimes, together with the people who were supposed to carry it out, one has to remember why he asked for it at all, how he was going to use it, in a word, the spoon is expensive for dinner.

"Our people"

My first application was rejected not because it was bad or didn't fit the theme of the donor, but because of the interference of competitors.
If you received a grant once and successfully reported on it, it is much easier to do it the second time. You are already known, you have demonstrated financial integrity and the ability to prepare reports, why not give more? That is, you get a good grant history - the exact analogue of a credit history.

At the second stage, it is better to ask for money not for a new project, but for the expansion or continuation of the old one, this is approved both faster and with a low probability of refusal. In addition, such an application is prepared much easier - you just change the numbers in the previous estimate and slightly edit the project.

And gradually you become a professional petitioner. And that means the recipient.

There are organizations that extend the project every year (for example, some kind of training for craftsmen in the wisdom of market relations). They become not only the favorite beneficiaries of the same sponsor, but also are part of the expert council that considers applications. (Such councils are created in order to make the choice of grants appear objective and open. I emphasize - visibility).

So, as an employee of the foundation said under the greatest secrecy, although my project was rashly accepted, a long-term favorite intervened in the matter - an NGO (non-governmental organization), living comfortably on the monitoring of something democratic (Americans love the word "monitoring", so I advise you to use it as often as possible).

This NGO published the monitoring results once every two months in a 16-page bulletin with a circulation of 200 copies, printed on a regular laser printer, and then the bulletin was sent to friendly NGOs, but mainly to foreign and donor offices - “look how great we are doing ".

And for this useful activity for six years, $35,000 has been allocated annually.

My project - the release of a large-circulation newspaper - made the publication of this bulletin meaningless, and, consequently, the further financing of their project. Therefore, the guys who came to their senses quickly explained at the “expert advice” why they should not give money to an unknown company, and my project was safely ruined.

Reporting

But generally speaking, donors are absolutely indifferent to whom they give money. If only the recipient spent them for their intended purpose, or rather, compiled the required reporting.

I strongly recommend doing reports as written in the instructions. Do not try to deviate from it, even if some requirement is contrary to common sense. The instructions were probably drawn up by the Americans, and, as you know, their worldview is significantly different from ours.

Remember: no one expects real results from you. All you are expected to do is properly prepared and timely submitted reports. Your reports will lie next to the reports of other grantees and become part of the overall report on the fruitful activities of the philanthropic foundation.

I remember how, out of naivety, at first I wondered why the employees of the grant structure never showed up at the seminars held within the framework of my project.

But then I realized that there are many grant recipients, and few employees of the funds, and they, with all their desire (if it suddenly arose), are not able to check how the money received is actually worked out.

Having learned the rules of the game, I regularly sent reports about regular classes and a huge coverage of listeners. The Foundation also behaved decently and did not try to find out if these classes were held and how many people actually attended them.

There is another reason why foundations do not overburden their staff with checks and digging into the affairs of grantees.

After all, if abuses are detected, the fund will be forced to somehow respond. But how? Well, okay, will not list the next tranche. And how then to explain to higher organizations why the project was not completed, why the money was given to the wrong person? It turns out that the selection of applications is carried out by incompetent people, it turns out that more competent people should be sent in their place.

So it appears that it is better for foundations to close their eyes to some inconsistencies between reporting and actual project work and not to be too vigilant.

Do fund employees take bribes?

Since bribes are a universal phenomenon, I do not think that only crystal-clear people work in funds. But I myself have not come across this, although I was assured that in some funds for a positive decision it is necessary to pay up to 30% of the requested amount.

That is unlikely. The estimates are quite transparent and it is impossible to divert as much as a third of the grant into the shadows. Then the very meaning of receiving charitable money is lost.

And one more circumstance. Salaries of local employees in comparison with the usual salaries are very significant. Therefore, because of the fear of losing their bread position, they behave extremely carefully and will not set themselves up, especially with strangers.

Conclusion

Whatever I say about charitable offices, it's still good that they exist. They are good and we are good.

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How to get a grant - where to apply + what you need for this + what documents to provide + and what to do with the money received.

Do you have a crazy idea for starting a business, as well as a great desire to work?

But at the same time you do not have enough money for this?

And you do not want to get into debt to friends or take a loan from a bank?

Then you will be very useful information about how to get a grant.

It is no secret that many business projects were able to materialize thanks to just such financial support.

If you also want to get this opportunity, then get ready for the fact that you will have to put in a lot of effort, but the result will be worth it.

What is a grant?

Before talking about how to get a grant, you need to understand the very concept of what it is.

A grant is either in kind or in kind to start or expand a business.

An important distinguishing feature of such support is that it does not require a return, that is, it is free of charge.

Grants for opening or developing a business can be issued by:

• state;
• private foundations;
• foreign organizations.

Based on this, you need to understand that these organizations may put forward different requirements for receiving a grant.

So don't waste your energy on applying everywhere you can.

Choose the source that will fit your field of activity and work on fulfilling its conditions.

Where to apply to get a grant?

“Half of what separates successful entrepreneurs from unsuccessful ones is perseverance.”
Steve Jobs

As mentioned above, there are three main categories of organizations that are willing to provide money or other assets.

But there are nuances here, using which you can understand where you should go first.

You should also understand that those funds that are ready to provide financial support have different goals.

Features of issuing grants by state organizations

1. When issuing grants, state funds give preference to socially unprotected categories:
   • university graduates,
   • those who are in the employment center,
   • who have been made redundant,
   • retired military,
   • single mothers,
   • disabled people
   • young professionals under the age of 30-35 years.

The state does not give the full amount to open your business.

Preference is given to those entrepreneurs who are willing to invest their own funds as well.

2. Preference is given to social spheres, as well as production and agriculture.
3. Most often, the state is ready to finance the purchase of equipment or raw materials, but at the same time refuses to cover the cost of paying wages.
4. When issuing a grant for business development, the state pays attention to the period of operation of the enterprise, and it should not exceed 1-2 years, as well as to whether the entrepreneur is able to hire additional people.

Peculiarities of issuing grants by private and foreign foundations

1. Private and foreign funds are very demanding in terms of reporting, that is, they must see that the money issued will go to cover certain expenses, and not in your "pocket".
2. Such organizations willingly agree to issue a grant for the payment of wages, in contrast to the state.

If funds are needed to finance innovations in the economy and business, then domestic private funds most often specialize in this issue.

But you can safely apply to foreign ones if you need to open or develop a business related to ecology, art, culture, society, IT-sphere.

3. Such funds practice issuing grants in tranches, that is, money comes gradually for the implementation of certain stages.

Required documents to receive a grant

Each business financing and support organization requires its own list of documents, but most often they overlap with each other.

So, the following documents may be required from you:

• correctly executed application for participation in the selection for a grant;
• copies of documents confirming your identity, as well as, if necessary, the participant's questionnaire;
• copies of documents that confirm that you have knowledge in the field of economics (diploma, certificate of completion of specialized courses);
• copies of documents evidencing the registration and registration of the business with the tax service, as well as entry into the register; copies of documents confirming the creation and availability of jobs - this is necessary if you are applying for business development;

This list of documents can be supplemented, so be careful when submitting it.

If something is incorrectly compiled or something is missing, the foundation has every right to refuse your participation.

How to get a grant: what to do?

So, you have already come close to the question: " How to get a grant?”, then you should know the order of your actions:

Choose an organization that suits you, where you can get a grant.

It must be relevant to your area of ​​work.

1. Learn where the organization has already given out money, in what amount and for what projects.
2. Study the requirements that the fund puts forward, as well as the rules for drafting an application for participation in the selection.
3. Prepare all necessary documents.

Write a credible business plan that clearly spells out goals, problems, and solutions.

Focus on the financial side.

4. Prepare a convincing and detailed presentation of your future project.

You just have to wait.

In most cases, after the application deadline has expired, foundations are given 3 months to review applications received.

How are grant applications decided?

The first few days are given to check the correctness of the preparation and availability of all necessary documents.

And only then the fund starts studying business plans.

Most often, funds use their own developed scoring scale, thanks to which they can form a rating of participants.

When considering, special attention is paid not only to the set goals and problems, but also to their solution.

The reliability of the given calculations is also checked.

State funds take note of those entrepreneurs who themselves can contribute a certain amount to the development or opening of a business.

And business plans that require full funding are most often rejected.

As for the financing of an already operating business, attention is also drawn to the dynamics of development.

If an enterprise has performed poorly during the period that it has existed, then it is likely to be refused.

Additional points in the "piggy bank" can be received by those projects that have already received funds from the selected fund.

Notifications are sent to the winners, and information about them appears on the official website of the fund.

How realistic is it to receive a grant from the state for the development of your business,

told in the video:

What to do with the money received?

The received grant is already an agreement between a businessman who needs money and an investor.

Therefore, the first has certain obligations that require fulfillment:

• the funds received must be used exclusively for the purposes for which they are issued;
• all necessary reporting must be submitted within a strictly specified time frame;
• in the event of force majeure or if it is impossible to complete a certain part of the project, you must immediately contact the fund to make adjustments;
• during checks, the commission cannot be hindered and it is necessary to provide all information that relates to the funds received.

In case of misuse of the grant or failure to comply with other conditions of the agreement, the organization may demand to terminate it and apply to the court with a claim for the return of all allocated funds.

Thus, you should not only be interested in how to get a grant, but also how to fulfill all the conditions of the fund that will give you money.

Know that this is a great chance to get additional funding for your business, so take it seriously.

You will get an opportunity not only for your own development, but also contribute to the improvement of the economic situation in your region.

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Grants are a free subsidy that goes to support small businesses and saves you from unnecessary debt bondage, as well as the risk of losing friends, honor and dignity. True, the demand for such programs now far exceeds the supply, so we warn you right away: you will have to try. But an extra 300,000 or 500,000 is never superfluous, right?

Where to get a grant?

In order to receive a grant for opening or developing a small business, you can take part in a state competition. In addition, grants are often played by charitable and investment funds, business unions, commercial banks and even national organizations. By the way, you need to apply only to the organization that deals specifically with your area - it is clear that if you are going to carry out repair work, then it makes no sense to apply for grants for healthcare projects.

Information about current competitions for grants can be found in print media, on the websites of business incubators, thematic Internet resources, as well as in the Ministry of Economic Development of your region. Usually, the deadline for the competition, submission of applications, requirements for participants and the documents necessary for all this are also indicated there.

What are the requirements?

In order to receive a state grant to support small businesses, a company must meet a number of requirements. They differ from competition to competition, but there are often common features. For example, the age of the company should not exceed 1-2 years. It is believed that most often priority is given to young entrepreneurs with higher education under the age of 30-35, as well as innovative projects, projects that promote market development or are export-oriented, and most often services take off. The easiest way to get a grant is for the purchase of primary equipment and raw materials, and given that the state program is also aimed at combating unemployment, preference will be given to enterprises with a large number of jobs.

A competent business plan plays a separate place in this story. It should contain good economic calculations backed up by real figures, contracts, and visual graphs. The more detailed and specific the use of targeted funds is, the better. And the more confidently the applicant answers the questions of the commission, the greater the chances of success.

Required documents

In order to participate in the competition and receive a grant for opening and developing a business, you must register and provide the main package of documents. This is an application for participation, an entrepreneur's questionnaire with copies of the main pages of the passport, a business plan and a document that confirms that you are familiar with the basics of entrepreneurship (a diploma of higher economic or legal education, a certificate of completion of entrepreneurship courses). In addition, copies of the company's constituent documents, a certificate of state registration, a certificate of entry into the register, tax certificates that confirm the absence of debts, as well as documents confirming the presence of premises, the creation and preservation of jobs will be useful. We would like to remind you that the package of documents may change from competition to competition.

Procedure

1 .We will find out what state competitions are currently being held and whether there is a fund in our city that issues grants in our direction. We look at the main conditions for obtaining a business grant. We study precedents for already issued grants – to whom they were issued, for what programs, in what amount and for what.

2 .We form an application and collect the necessary package of documents. We consider how much money we need and for what. We prepare a business plan and economic justification. The application may be considered for a month or two.

3 .We make a convincing presentation of our project. The decision to issue a grant is made on the basis of competitive selection. If all is well, a grant agreement is concluded with the entrepreneur, and all the money is transferred to the company's current account. By the way, all funds will have to be accounted for - in case of misuse, they may be asked to return.

Rumor has it that some companies can exist for years thanks to the support of the state and specialized funds: for the first time they receive a grant to open a small business, and then to develop and support an existing project. They did it, so you can too!

Entrepreneurial activity is a rather complicated and labor-intensive way of making money. A person who is in business has to solve problems of various kinds. They may be related to technical, domestic, social and financial issues.

It is a well-known fact that private business requires investments, especially at the stage of formation. One of the tasks of a person who is engaged in entrepreneurial activity is Finding and raising finance for your business.

Potential recipient

People who are currently unemployed can count on receiving a grant. Moreover, this status must be officially confirmed, that is, a person must be registered with the employment center.

What is the difference between a grant and a subsidy?

A grant differs from a subsidy in that they have different sizes and are issued by different structures. Usually, the subsidy goes to the entrepreneur entirely, and the grant - in several stages or, in another way, tranches. If the funding comes from a foundation, then the entrepreneur will need to submit reports on the purposes for which the money was spent.

The organization that finances the entrepreneur can itself purchase the necessary goods. A grant can be issued several times if the company that received it has proven itself well and has positive development indicators. In the case when the use of funds did not bring any result, then, most likely, the next financing will be denied.

Grants may be provided by the state or private organizations. The direction of financing of public and private funds differs.

Government funding

The state aims at social support of the population, so grants are received by:

1. Unemployed citizens whose status is confirmed at the labor exchange.
2. Youth who graduated from a higher educational institution.
3. People who have .
4. Military personnel with retired status.

There are certain areas that are developing in a particular region. For example, agriculture is developing in one region, and business related to the support of new technologies will be a priority in another. It will be easier for those organizations whose activities are related to the priority areas of the region to receive a grant.

Another factor that influences the choice is long-term project. The state is interested in the company to develop and pay taxes. Therefore, in order to receive a grant, it is necessary to prepare a calculation that will show that this project will be successful and in a couple of years will return the funds invested in it with taxes.

Also, a positive moment for obtaining a grant in 2018 will be the provision of jobs to the unemployed segments of the population. Welcome, if their number will be at least five.

gratuitous help

Assistance provided free of charge private foundations. They can be domestic or foreign. The scope of their funding extends to companies and organizations whose activities are related to culture, economy and ecology. Also attracted the attention of such funds are projects related to scientific research and the development of any innovations.

As a rule, these funds give preference to already proven organizations that have experience in the effective use of funds.

Before submitting an application for a grant to a private foundation, it is recommended to prepare, namely, to clarify which companies have already been funded, whether these entrepreneurs received grants before, and if so, in what quantity.

If possible, organize a meeting with the winners of the grants. Ask them about the features of the project, what to focus on, in what form to make a presentation and other points that can positively affect the receipt of funds.

There are general requirements for grants, but private foundations can set their own conditions. For example, when granting a grant for a project related to agriculture, there may be restrictions on the area of ​​land use.

From banks

In addition to funds, grants are issued by banks, they determine the conditions for obtaining and the amount. As a rule, banks compensate part of the money spent from the implementation of a project for the customer. Also, the bank may stipulate which regions can participate in the competition, the number of company employees, income and other requirements.

As a rule, if an entrepreneur meets the requirements of the bank, then he leaves an application, and if it is approved, he performs actions aimed at implementing the customer’s project. Next, you need to provide reporting on the funds spent and receive compensation for the completed project.

Exceptions and Deadlines

State grants are received by novice specialists or socially unprotected sections of society. Private funds focus on science and new technologies. However, there are exceptions.

The deadlines for applying for grants vary, as everything depends on the fund and the nomination. As a rule, the terms are indicated along with a list of necessary conditions for obtaining a grant. There are times when they can be extended.

The main time limiter for 2018 falls on end of July. But there are also grants to apply for. until February or Martha.

There are certain deadlines for consideration of applications, they are two months. But there are cases when the application can be considered for about a year.

Possible compensation

Entrepreneurs should be aware that the funds allocated by the fund must be spent for their intended purpose. It will not be possible to purchase items that can be used for personal purposes, such as a car or interior items.

The money can be spent on the purchase of equipment that will be used in production. The purchase of raw materials or materials is also welcome. You can include long-term rental property. Compensation of the wages of people who work in this company is not paid by state grants, and foreign investment funds consider these expenses acceptable.

If an entrepreneur is ready to participate in co-financing his project, then this will be a plus for making a positive decision on issuing a grant in his direction. The more an entrepreneur is willing to contribute to a project, the higher his chance of getting a grant. The amount of co-financing of the project varies from 15 to 50%.

Conditions for obtaining

In addition to the standard requirements that a grant applicant must meet, foundations may nominate additional terms. Mandatory conditions include the following criteria:

1. Passing by the candidate of courses of bases of enterprise activity.
2. Providing jobs to people who are not engaged in labor activity. This condition may be mandatory when receiving a state grant.
3. Documentary evidence of the absence of any financial assistance previously received.
4. A certain annual turnover of the company.
5. Provide reporting on the absence of any debts to the tax authorities.
6. Requirements related to age, education and work experience in a particular field must be met.
7. The business must be registered in a certain region. As mentioned above, there are differences between regions in the allocation of funds in one area or another.

In addition to industrial and business projects, funds can be allocated for the implementation of political projects aimed at improving the quality of life of the population.

1. Educational projects aimed at working with schoolchildren and students.
2. Cultural and educational activities.
3. Rehabilitation of drug addicts and alcoholics in society after treatment.
4. Activities related to the employment of the non-working population.
5. Help people who have suffered from any natural disasters and hostilities.

Required documents for applying

There is a basic list of documents that are needed to apply for a grant. Each fund can also put forward additional requirements.

1. Business project.
2. Passport of the entrepreneur who will appear as the applicant.
3. Completed application for participation.
4. A special letter, which should reflect the strengths of the project, namely, its uniqueness, relevance and necessity.

The application must contain information about the existing problem of the company, a description of how to solve it. The financial part should also be spelled out, namely, where it is planned to spend the money, possible risks and ways to resolve them are described. The fund determines the application form.

Sample business plan

Exist standard business plan template suitable for a grant.

Errors in the preparation of the application

Exist a few mistakes, because of which the entrepreneur may not receive a grant.

1. If you specify the maximum possible amount of funding for the project.
2. There are few jobs that the entrepreneur plans to provide.
3. Do not indicate that the company needs a car.
4. It is imperative to prescribe in the business project the exact expenditure of funds.
5. You must provide information about the suppliers and partners of the company.
6. The business project must be voluminous.
7. You should indicate how much taxes will be paid.
8. The project must contain information about the competitiveness of the product or service.
9. It is mandatory to provide information about the effectiveness of the project.
10. The design of a business project should be at a high level.

You should comply with reporting requirements, as well as be interested in the most effective ways to use funds in the fund, you need to be in touch with him. If an entrepreneur "makes friends" with the fund, then he will have the opportunity to receive other material support.

How to get money from the state for the development of IP, you can find out in this video.

Many individual entrepreneurs are interested in the question of how to get a grant for small business development in 2019. This issue has become especially relevant in conditions of economic instability. Let's say right away that each region of the Russian Federation has the right to independently approve the requirements that the applicant must meet in order to receive funds. In general, the candidate must submit an application and comply with the conditions of a particular competition.

In our article today, we will look at what a grant is and how small businesses can get it.

What are grants and how are they distributed?

A grant is a sum of money provided free of charge and irrevocably to entrepreneurs by a Russian (international) organization (grant giver) for the implementation of a project that is of social value.

In order to receive a grant, a small business representative needs to familiarize himself with the basic principles of its distribution, which are as follows:

1. The object of entrepreneurial activity must be active and belong to the field of small business. The activities of an entrepreneur, as a rule, should be related to production or trade.
2. On the day of applying for a grant, the IP must be open for at least 12 months. Thus, it is literally impossible to receive a grant to open a business. At the time of application, the IP must already be registered. Another thing is that his business may not be as developed as he would like.
3. Grant applications must be considered by special competitive commissions, which are formed under the regional bodies of local self-government.
4. The credit history of the applicant must be impeccable.
5. The candidate must pay taxes regularly and in good faith.
6. The procedure for granting grants for the development of small businesses in 2019 is regulated by a bilateral agreement, which is concluded between the regional small business support fund and the entrepreneur who receives the grant.

It should be noted that regional programs that are aimed at supporting start-up businessmen must comply with all of the above requirements and principles.

Requirements for applicants

Federal Law No. 209 defines the circle of entrepreneurs who are entitled to apply for a grant. The law lists all the signs by which a business entity can be classified as a small business. Please note that local authorities may expand these requirements within their jurisdiction.

Thus, an individual entrepreneur who expects to receive a grant for the development of small businesses in 2019 must:

• meet the requirements for the number of jobs;
• meet the conditions of registration;
• receive a certain amount of revenue (per year);
• have documents confirming the fact that the individual entrepreneur has not previously received assistance from budgetary organizations in the form of grants and subsidies;
• be trained in a special organization that operates under the regional small business support fund.

The social component also plays an important role in the distribution of grants among individual entrepreneurs. It is she who is often paid attention to when choosing applicants for receiving funds.

Social entrepreneurship is an activity that is carried out in the following areas:

1. Promoting employment for vulnerable groups of the population.
2. Organizations of social tourism.
3. Providing educational services.
4. Providing assistance to victims of natural disasters or catastrophes.
5. Involvement in social activities of citizens who suffer from drug addiction, alcoholism or who have served time in prison.

Note that the state seeks to support the ideas of entrepreneurs who have a social orientation.

Grants in 2019

The maximum amount of assistance to entrepreneurs in the form of grants in most regions of the Russian Federation is 300,000 rubles (except for Moscow and some other cities).

This does not mean at all that an individual entrepreneur, having developed a business plan in the amount of 300,000 rubles, can count on receiving a grant. The fact is that one of the requirements for applicants for a grant is the availability of their own funds, which will be used in the implementation of the planned project.

An entrepreneur wishing to receive a business development grant must have documentary evidence that he has the opportunity to invest at least 15% of his own funds in a project based on a business plan. This requirement applies to a grant application.

How are applications decided?

Supporting documents may be submitted electronically along with applications. To do this, you can use specialized sites.

After an application is received from an individual entrepreneur, three working days are allotted for its consideration. If during this time it is established that all IP documents comply with the requirements and conditions of the program, then this application will be considered at a meeting of a specialized commission. The committee has three months to make a decision.

Each application is evaluated by a points system that is used in the region of the Russian Federation. The information received becomes the basis for compiling an overall rating of applications.

After the development of the overall rating, the members of the commission, based on the results of the general vote, select the most suitable applicants from among the entrepreneurs who have applied. It is these individual entrepreneurs who will be given grants for the development of small businesses. The results of the competition are published on the official website of the regional fund.

Within a month after publication, an agreement is signed between the individual entrepreneur and the regional fund, which describes in great detail the conditions for obtaining a grant for the development of small businesses, based on the documents provided by the individual entrepreneur.

After getting acquainted with the procedure for obtaining a grant, an individual entrepreneur may have doubts about the success of his own project. In this case, you can use the funds received to implement the project of another entrepreneur, or buy a ready-made business.

Use of funds

After the end of the project implementation period (grant period), the grant recipient must report to the founder on the use of funds.
The report should be in two parts:

1. Informative.
2. Financial.

If the recipient of the grant did not report within the period established by the agreement, then he will be included in the “black list”.

Data on the misuse of funds by the grantee is sent by the Grant Department to the tax service.

How to get a grant for small business development: results

In order to receive a grant, an individual entrepreneur must:

1. Find a foundation in your area that supports small businesses.
2. Prepare a very detailed business plan for a small business development project and attach documents to it for participation in the competition. After that, all submitted projects will be subject to an independent examination. The criteria for evaluating projects are as follows: economic feasibility; the prospect of market sales of products; technical innovation and more.
3. Complete training to participate in the program (in the form of courses and seminars).
4. Do not have debts to budgets of all levels.
5. Keep in mind that the grant may not be issued in full, but in parts (tranches). Thus, the initial amount can be issued for the implementation of the first stage of the project based on the business plan. After providing a detailed report on the use of funds in the first stage, you can count on the next tranche.

In conclusion, we add that most often the winners of competitions for grants are projects for the development of small businesses in the field of creating consumer goods and services. That is why, before applying for a grant, it is worthwhile to carefully study the potential sales market.