The easiest way to get a business grant from the state
Today we will analyze the most popular way to receive government grants among domestic entrepreneurs.
We will talk about consulting companies and private assistants who help in attracting these grants.
This method is popular for two main reasons. An entrepreneur will significantly save his time and significantly increase his chances of receiving a grant.
But is everything so simple and obvious? What role do such assistants really play and how to avoid falling into the hands of scammers? Today we will try to find answers to these questions and not only.
The role of consulting companies and private consultants in obtaining a grant
The very appeal to a consulting company or a private consultant implies that your chances of receiving a subsidy from the state should increase significantly. In practice, this is true. Here's why:
Prepare documents correctly
When applying for a grant, you will have to prepare a list of required documents. Some of them you will have to fill out with your own hands, for example: project documentation or a business plan of the project. In this process, accuracy and scrupulousness are important. Therefore, it is better to entrust this process to professionals.
Quickly collect documents
It's no secret that the process of collecting documents can turn into an exciting quest called - to stay alive. Now you can get some of the documents in electronic form without leaving your home, but for some, you will have to run around and defend more than one line.
Sometimes the fate of the received grant may directly depend on how quickly you prepare all the necessary list of documents. The amount of funding for each program has its own limit at the level of a particular region, and sometimes some companies do not receive grants just because they collected documents later than others and applied.
When deciding how to organize your business, you may need external sources of funding. Getting money requires competent planning with detailed calculations. The state or investor will issue funds if the project meets their interests. The article describes how to draw up a business plan for obtaining a grant - irrevocable material assistance.
Content of the article
A large number of domestic entrepreneurs do not receive financial assistance due to non-compliance with all requirements for obtaining a grant. Therefore, take all the prescriptions very seriously and carefully.
Also download a ready-made sample and learn how to correctly draw up a business plan for a grant.
Differences between the grant and other funding sources
Winning a grant is a great way to get money to start and expand a project. This is a gratuitous cash subsidy for an enterprise, organization or individual to carry out any kind of activity, for example, to start a business. This is the start-up capital, which is very important at the stage of founding a company. Consider, a follow-up report on the use of money is required. You can also use other funding methods.
Other documents for project financing:
Business areas for which grants have been allocated:
- service sector - 30%;
- manufacturing - 20%;
- trade - 12%.
Mostly allocated to:
If you decide to attract a grant to start or develop your business, you just need a business plan. A business plan for a grant is significantly different from a business plan written for a private investor, bank or for one's own needs. And the most important difference is the purpose of writing a business plan.
For more information about what a grant is and how to get a business grant, see this article.
In the case of a private investor, it is enough to show that the money invested in the project will not only be returned, but will also bring additional income in the future. It is important to indicate how and by what means this will be done.
With the state, everything is somewhat more complicated.
Since the state acts as an investor in the case of a subsidy in the form of a grant, the business plan should also be drawn up taking into account the interests of the state.
It is quite possible to write a good business plan for a grant yourself. But in this case, the result is not guaranteed. If you turn to specialists to create a business plan, then the chances of getting a grant increase manifold.
When creating a business plan for obtaining a grant, it is necessary to clearly understand for which government support body the business plan is being created. Each constituent entity of the Russian Federation, as well as a municipal entity (city / district administration) organizing a competition for grant support, has a state Program (for example, a program for socio-economic development) within which funds are allocated for the development of small and medium-sized businesses. Within the framework of the Program, the Procedure is approved (for example, the Procedure for holding a competition for the provision of grant support).
This Order defines everything: how, to whom, when, how much, etc. money will be allocated from the budget.
Therefore, if you want to receive a grant in your city, you must do the following:
1) go to the website of the city administration and familiarize yourself with the Procedure for providing grant support. Perhaps this procedure is not published on the website of the administration, but on the website of the support infrastructure bodies (for example, on the website of the local Entrepreneurship Support Fund);
2) in the Procedure it is necessary to study the main points and get answers to the following questions for yourself:
- who is eligible for support (so-called Subjects of Support)?
- in what proportion can the state finance the project? As a rule, there is a requirement for the applicant to finance at least 15% of all project costs;
Here you can download several examples of a business plan for a grant. These business plans were executed in strict accordance with the requirements of the Regulations for Grant Support of the Administrations of the Municipal Formations, in which the competition for the grant was held.
Provisions for grant support are developed by the administrations of regions, territories, municipalities, districts for holding competitions in a specific territory.
This means that the requirements for the design of business plans for obtaining a grant in various territories of the Russian Federation are:
1) similarities, i.e. grants are issued under a program developed by the Ministry of Economic Development of the Russian Federation;
2) significant differences, i.e. Provisions for grant support are developed taking into account the specifics of a particular territory.
1) Business plan structure. The structure of a business plan includes a standard set of sections. More details about the structure of a business plan for a grant can be found in the article: "Business plan for a grant";
2) Directions for spending the grant funds. Investments for which grant funds can be directed are strictly limited by the Regulation on grant support. This is the acquisition of fixed assets, raw materials, materials, compensation for registration costs ... It is encouraged when the grant funds are directed to the purchase of equipment;
3) Co-financing of investment projects by the applicant. All the Provisions on Grant Support require that along with the state grant money, the project should be financed by the applicant himself at his own expense. Thus, the state is insured against the risk of being the only investor in the project. The grant applicant must also bear the risk of losing their money in order to be more motivated in the results of the project.
1) The criteria by which the competition commission will select the winners. For various cities, districts, regions, it is of interest to support the areas of entrepreneurial activity necessary for this particular territory. Therefore, the priority sectors in each territory are different;
2) Requirements for filling sections of the business plan for the grant. If the structure of the business plan is approximately similar, then the requirements for the information that must be disclosed in the business plan differ. For example, in one territory it is necessary to disclose information about the tax efficiency of the project - i.e. about how quickly the grant funds invested by the state will be returned in the form of tax revenues to the budget. In another territory, it is required to calculate 5-10 coefficients of economic efficiency of the project. Nobody is interested in tax efficiency;
3) Requirements for information disclosure in attachments to the business plan. Often, it is required not only to prepare a business plan, but to show that the information contained in it is reliable. In order to confirm the accuracy of the information in the business plan for the grant, you need to attach a transcript (make a separate attachment). For example, in order to confirm the accuracy of the purchase price of equipment, it is required to attach a commercial application from several organizations to supply this equipment.
By downloading a business plan on the Internet, you acquire a semi-finished product. You can't just take it and use it as it is.
The business plan, even if it was successful and a grant was received for it, for example, in Kogalym, in any case requires substantial revision, i.e. administration requirements for the design and content of the business plan are different.
The main document required to receive a grant is a business plan. The decision of the grant commission depends on its quality and relevance.
Many business projects in Russia have come true thanks to government support. After all, it is quite difficult to achieve success only by your efforts and savings. The topic of our review is government grants for business development for individual entrepreneurs in 2021.
Yearly Small Business Development Grant
Grant is usually called gratuitous aid, both in cash and in kind. Financial support from the government can be directed in the field of scientific research, for starting a business, in the field of education and other useful areas. The main requirement for a grant is the usefulness of the idea. A business project must solve some kind of social or economic problem.
Organizations and citizens registered as a business entity have the right to take part in the grant drawing. A grant for young entrepreneurs is also available. You will need to be selected on a competitive basis. Money can only be spent on business needs. In conclusion, you will have to report on where the funds allocated from the state budget were directed.
Note that the Russian government takes an active part in sponsoring small businesses, because the success of entrepreneurs affects the development of the country as a whole, and increases the standard of living of ordinary citizens.
Conditions for receiving a grant for small business support
Traditionally, a grant for business in Russia, within the framework of state support, is distributed as follows:
- the activities of businessmen are related to the sale or production of goods in the segment of small business;
- potential grant recipients have an ideal credit history;
- absent "Misunderstandings" with the tax authorities.
The procedure for considering applications from applicants may take a long time. According to the terms of programs in various regions of the Russian Federation, the list of requirements for applicants can be supplemented based on Federal Law No. 209.
Not only successful entrepreneurs, but also beginners are eligible to receive a grant for the development of their own business. The state actively encourages the category of the unprotected population, including the disabled, university graduates, single mothers, the military, etc.