For-profits Can't Get Grants, Unless...

Plenty of self-proclaimed experts will tell you, "for-profit companies can't get grants, they're only for non-profits." Bologna!

It is true that if you are looking for free money to start a business, or just Free Money in general, it doesn't exist (or I'd have it and would be sipping drinks with little umbrellas in them on a beach somewhere, not writing this blog).

But, there are two (sometimes three) very distinct ways that companies can and do benefit from pursuing grants. The first avenue for a company to procure grant funding is through innovation. There are several government agencies out there that are willing to pay companies to invent a better mousetrap. SBIR and the lesser known STTR are administered by the Small Business Administration and are funded by eleven different government agencies. Disclaimer: read the fine print on any SBIR or STTR program very carefully, in some cases the government will own your mousetrap in the end.

The second avenue, and my personal favorite to work with, applies to companies that are selling a product consumed by grant-eligible entities. For example, companies selling educational technology, like distance learning equipment, might market heavily to schools. Schools are eligible for a variety of different kinds of grants to support installation of distance learning technology. Viola! A grant writer enters the picture, writes a stunning proposal and suddenly the school is buying the company's product with real, free money. A smart company keeps a grant writer on contract and never misses an opportunity to add grant writing services, gratis, to their marketing strategy.

The third avenue appears to be an interesting little offspring of the Great Recession (although it's been around to some degree for ages). It is the economic development grant. ARRA has been full of them. Many of these grants come in the form of grant, zero-interest loan and low-interest loan combos. I find this type of grant intriguing and have enjoyed working on a fair number of them; the topic certainly deserves an exclusive, future post.

For now, the important point to take away is that, yes, companies can and do benefit from grants. And, if your company isn't benefiting from grants, you should contact a grant expert for assistance in tapping this valuable resource.