GOVERNMENT GRANT – A SPECIAL HELP BY GOVERNMENT

Government grants are assistance by government in cash or kind to an enterprise for past or future compliance with certain conditions. They  exclude  those  forms  of  government  assistance  which  cannot reasonably  have  a  value  placed  upon them  and  transactions  with government  which  cannot  be  distinguished  from the normal trading transactions of the enterprise. Grants are not benefits or entitlements.

Types of Grants

There are many types of grants. Some of the main among them are as follows:

1.      Business Grants – The grants offered by the government for business purposes are called government business grants.

2.      Education Grants – The grants offered by the government for education purposes are education grants. For example grants for college, grants for school, and grants for universities.

3.      Agriculture Grant - The grants offered by the government for the enhancement of agricultural activities are called agricultural grants.

4.      Health Grant – The grants offered for the health services are called heath grants.

Who is eligible for grant?

Government grants do not offer money for personal financial assistance or debt. There are many groups of organizations that are eligible to apply for grants.  They are

1.      Government Organizations – State governments or local governments are eligible for grants.

2.      Education Organization- Independent school districts, Public and State Controlled Institutions of Higher Education and Private Institutions of Higher Education are eligible for grants.

3.      Public Housing Organizations – Public housing authorities and Indian housing authorities are eligible for grants.

4.      Small Business Organizations - Small business loans and small business grants may be awarded to companies that meet the size standards that the U.S. Small Business Administration (SBA) has established for most industries in the economy. The most common size standards are as follows:

·         500 employees for most manufacturing and mining industries.

·         100 employees for all wholesale trade industries.

·         $6 million for most retail and service industries.

·         $28.5 million for most general & heavy construction industries.

·         $12 million for all special trade contractors.

·         $0.75 million for most agricultural industries.

5.      Individuals - An individual submits a grant on their behalf, and not on behalf of a company, organization, institution, or government. Individuals sign the grant application and its associated certifications and assurances that are necessary to fulfill the requirements of the application process. So, if you register as an Individual, you will only be able to apply to grant opportunities that are open to individuals. An individual cannot submit a grant application to a grant opportunity that is just open to organizations.

Points to consider while applying for grants – There are some points which should be considered before applying for grant. They are

1.      Describe the criteria for success.

2.      Explain what will occur as a result of the proposed activities – be clear and concise.  At this juncture, identify and describe both the short and long-term effects and/or benefits.

3.      The most recent financial statement from most recently completed year, showing actual expenses.  A balance sheet or statement of income and expenses is required.

4.      Organization’s budget for current year, including income and expenses.

5.      A non-profit submitting a grant application will need to provide a list of corporations and foundations it is seeking additional funding support, with dollar amounts, indicating what sources are committed or pending.