Small business grants are an excellent way to obtain financing for your growing company. In order to meet the various need of your business, business owners may need to get assistance in the form of business finance.
While it’s true that it may be convenient to finance your business using your own funds, it can become an inconvenience in terms of keeping track of your finances.
Getting a small business grant may be ideal for entrepreneurs who want to ensure that their business grows.
Types of grants available for small businesses:
Government grants
This is an award of funds from the government that does not need to be repaid. It doesn’t accrue interest and has strict guidelines for the application. This type of grant is usually extended to businesses that can align with government’s key deliverables.
Grants are also available through the Small Enterprise Finance Agency (SEFA).
The organisation’s mandate is to foster the establishment, survival and growth of SMMEs and contribute towards poverty alleviation and job creation. Direct loans offered to small and medium sized enterprise are available from a minimum of R50 000 to a maximum of R5 million.
Other grants include:
- National Empowerment Fund
- National Youth Development Agency
- Industrial Development Corporation
- Land Bank.
- Technology Innovation Agency
NYDA
Established in 2008, the NYDA has moved more toward microfinance grant provisions. The grant provides both financial and non-financial support to young entrepreneurs. The grants are available from R1000 to a maximum of R100 000.
The type of support that is offered is also in the form of mentorship programmes, a voucher programme, market linkages and entrepreneurship development programme.
The grants from the NYDA are also offered to formal and informal businesses in the start-up phase or in the development stage.
How to successfully apply for a small business grants:
- Read the requirements carefully to make sure your business fits the criteria.
- Follow instructions exactly.
- Provide specific details about your plans for the grant money.
- Avoid companies and individuals offering grants for a fee- these are usually scams.
- Having clear financial documentation will aid the bank in assessing whether to grant you a loan or not.