Grants are pretty cool, at least we think so anyway! But a lot of folks are hesitant to start on their grant journey because they don’t know if grants are really free. Well, we can help clear that up!
There are a few things to consider when looking at “the cost” of grants. Because yes, grants are free money, but that doesn’t mean they don’t come at a “cost.” It’s important to look at all of the pros and cons of the grant landscape before diving headfirst.
Grants are reimbursed funding (usually.) There are some grants that don’t follow this structure and will give you cash upfront, but it’s rare. You need to have the cash upfront, or access grant-based financing when seeking grant funding. After your project is complete and the reporting phase is finished, you’ll get your costs reimbursed by the organization.
So yes, you’ll get your money eventually, but you have to have the money to get the money.
You might already know one of the biggest differences between investor funding and grant funding is that investors often take equity, but grant providers do not. Grant funding is also a type of non-dilutive funding. You will almost always retain full equity (ownership) of your business.
Not all grants offer the same amount of coverage, which is why it’s important to find the right grant with the right coverage for you. Some grants will offer 50% coverage with a maximum of a certain amount. Or maybe even 75%, like the Technation Career Ready Program. But some grants will actually cover all of your needs with 100% coverage! But be prepared when applying to grants that your business might need to cover a certain amount of the project in order to secure funding.
If you plan to do all of the grant work yourself, then you’re set! But a lot of the time, as a business owner, you just won’t have the time to devote to long application processes or finding what grant is right for you. Luckily, Pocketed’s marketplace offers services like grants writers and grant consultants who can do that work for you! But it’s important to remember that these services cost money. Some grant writers/consultants will only charge you if they secure the grant by taking a percentage of the grant funding, but others might charge an hourly fee. But don’t worry, we can help you find the right grant service for you!
Although there may be “costs” associated with grant funding, for the most part, grants are free and grants are for everyone! Being able to access grant funding in a simple and broken-down way can be the key to securing funding or not. That’s why Pocketed is free to use! So what are you waiting for? The world of FREE MONEY awaits!