You can’t get anything in life for free, or can you?
I grew up in a family that was very money conscious. We didn’t always get what we wanted and as a kid, that was difficult to accept. My mother would always say “Nothing in life is free” or “Money doesn’t grow on trees”. So when I started our farm, I didn’t even think about free money. I assumed loans and owner equity was the only way to start up. However, after a few years of learning some hard lessons, I realized there is such a thing called free money, Grants.
Loans and Grants are frequently referenced in business and they can be a little confusing at first. Loans is money that will need to be repaid usually with interest. This is a concept most people are familiar with as our society is used to car loans, house loans, etc. However, I didn’t understand the grant process until I started farming. A grant is funds given without the need to repay it. Now some would say grant money isn’t free, it costs someone something. Yes technically there are usually stipulations with grants and who is funding them. These are all things to understand before applying for a grant.
This year our farm applied for four grants: two from the government and two from private entities. The process usually starts out with understanding what type of projects the grant is trying to support. Not all grants will fit your operation, it takes a bit of time to weed through the possibilities. I believe this is one of the most important steps when searching for funding. Don’t waste your time on applying for grants that don’t fit and on the other hand, don’t be afraid of applying for the ones that do.
Next up is the application process. Each grant has their own template and process. Usually it consists of a business plan, project plan, budget, and letters of support (all things we can help with!). Some people find this step painful and other quite enjoy it (I may be a bit of a numbers nerd). Never submit a grant that is not complete, this will immediately signal that your business is not committed. After you hit submit, nothing. You get nothing. The waiting period begins.
You mark the date on your calendar for when the notification of the grant recipients will be announced and you sit by your phone or computer. That is what I did all winter and spring waiting to see if we would get any of these grants. Finally, we heard back… 4 out of 4 awarded!
Next comes paperwork, more paperwork, and education on the reimbursement process. Most grants are reimbursement based meaning you pay for your project, submit receipts, and there it is: Free Money!
Now I am off to work on our farm projects and will be back to thinking about grants during the fall aka grant season.