Submitted by: Melissa Davis

As advisors and community economic development specialists, we are often approached by individuals who are looking to start a business or expand an existing one with one common question: “Are there any grants available for my business”? There is a simple and a complex answer to this question. The simple answer is yes there are some grants available, and the complex answer is that the grants offered may not apply to your business. 

Grants are difficult to obtain and can have a variety of conditions attached. Many are not available to startup businesses. Other misconceptions are that people believe that grant funds are specifically for women and minority owned businesses or veterans, which in most cases is not true. Also, the retail industry rarely has any grant opportunities.

That being said, Grants do exist to help businesses that will have impact on the community as a whole. Impact on the community may come in the form of job creation, value added (agriculture benefits), or more revenue brought to the area in general — perhaps through a sector such as tourism. Only saying, “I will be creating a job for myself” or “I will be bringing revenue in for my family” doesn’t count. Generally, funds used for grants are public tax dollars; the state wants to see how your business, with the assistance of a grant, will impact as many residents as possible.

Yes, while grants can be helpful, you shouldn’t rely on grants as a primary means to start or expand a business. Rather, in limited situations, grants can be pursued to help a business try something new or pursue a specific opportunity.  So, as you are figuring out your project needs, you must take into consideration where other funding would come from to help complete the project.  The grant will not fund the entire thing, you will have to use other sources of funds to make a project completed.

Business owners should keep in mind that grants are very competitive. Grants have deliverables and reporting requirements; they are not free, easy money. Some grants are reimbursable, which means you pay for everything first then submit receipts to be reimbursed. 

One helpful tip when looking into grants, is to read the section on who is eligible and what the eligibility requirements are. Knowing your project needs is another important aspect of all this.  If you don’t have a clear understanding of what you are trying to do, then the grant committees won’t either. 

Second helpful tip is, please understand you don’t do a project then apply for the grant. You must apply first, be approved, then do the work (pay for the project), and once the project stipulations are complete, you may receive the money.

While small businesses in the agriculture sector may be eligible for a variety of grants related to value-added products, investments in conservation and clean-energy initiatives, and a variety of other programs, they are very specific project-oriented goals that come along with those grants.  Grants can be tedious and time consuming.

Check with the offices of Cornell Cooperative Extension in Madison County or other local economic-development agencies for any opportunities that might be specific to your community or geographic region. We are here to help you navigate your way through the process and assist in any way we can to ensure the overall success of your business.  

Cornell Cooperative Extension is an employer and educator recognized for valuing AA/EEO, protected veterans and individuals with disabilities and provides equal program and employment opportunities.

Editor’s note: Melissa Davis is Agricultural Economic Development Specialist for Cornell Cooperative Extension. For any more information, contact her at 315.684.3001 x. 101 or mld249@cornell.edu.

By martha

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