Here is a common situation: you have a great idea for starting your own business, you also have enthusiasm and a lot of energy for work, but there is no serious money to start a new business. For some reason, you don’t want to consider the option of a bank loan or a loan from friends. Well, there is another way - getting a grant. What is a grant? We are talking about targeted sponsorship. If you want to know how to get a grant, read on.

Please know: many business projects have found fruition precisely thanks to this form of financial support. If you decide to follow the same path, be patient and prepare to expend considerable effort. But believe me, the result is worth it.

And yet - what is a grant?

This word is thrown around a lot in the media these days. Before we figure out how to get a grant, let's clarify the essence of the concept itself. A grant is understood as a type of targeted assistance, expressed in money or in kind and aimed at specific goals, one of which may be the expansion or opening of a new business. Its main distinguishing feature compared to a loan is that it is a free subsidy. The grant does not require repayment.

It can be issued by the state and private foundations or foreign organizations. And, as you understand, each of the listed sources has the right to put forward its own demands. That is why you should not “throw” your application everywhere where there is at least some chance. Focus and choose the source that best suits your industry. And then figure out what conditions you have to meet.

Where exactly should I go?

To make the right choice among the three main categories of organizations listed above, you should clearly understand what goals each of them pursues.

Government organizations are most willing to issue grants for business development to representatives of those categories of the population that are commonly called socially vulnerable. We are talking about university graduates, citizens registered with employment centers or laid off, military retirees, disabled people, single mothers and young professionals.

You will not receive the full amount needed to open your own business from the state. Here, preference is given to those entrepreneurs who have their own funds (at least partially) and who are ready to invest them in this business.

The preferred area for the implementation of public money is social or industrial. It is also quite possible to receive a grant for agricultural development here. The state willingly finances the purchase of raw materials or equipment, but the future entrepreneur will most likely have to bear the costs of paying employees on his own. Also in this case, the period of existence and operation of the enterprise is important. According to the terms of grants, it should not exceed a year or two. They also consider the entrepreneur’s ability to hire additional personnel.

How private and foreign foundations issue grants

Such organizations have many reporting requirements. It is important for them to see that the money given by a businessman is spent in a strictly defined way, and does not end up in their pocket. Unlike the state, these sponsors also finance the payment of wages to hired personnel.

When it comes to financing innovations in business or the economy, it is best to turn to one of the private domestic funds. It makes sense to request help from a foreign fund in the case of the option of opening or developing a business in the field of art, ecology, society, culture or the IT sector. Most often, grants in such funds are issued in the form of tranches, that is, each specific stage is implemented separately.

What documents are needed

The list of these will be individual for each organization that finances and supports the business, but their list is often very similar. So, what might they ask of you?

1. A properly completed application for participation in the selection, which is held among those wishing to receive a grant.

2. Copies of all identification documents and (most often) the participant’s application form.

3. Copies of documents that can confirm your competence in the economic field. We can talk about both a diploma and certificates of completion of various specialized courses.

4. Copies of registration and constituent documents for your business, as well as papers on tax registration and entry into the register. If you submit an application for business development, copies of documents confirming the availability of jobs or the creation of new ones.

5. Business plan. This item is mandatory.

The list above is approximate. It can always be supplemented and expanded. Therefore, treat it carefully. If any papers are missing or are prepared incorrectly, the fund has the right to refuse to consider your application.

Let's look at a short step-by-step instruction on this issue:

1. Choosing an organization that is right for you.

2. Studying the history of its issuance of money - what projects were financed and in what amount.

3. Study of the requirements put forward by the fund and the rules for drawing up an application for those wishing to participate in the selection.

4. Preparation of a complete package of necessary documents.

5. Drawing up a real business plan with a clear definition of your goals, existing problems and ways to solve them. Make the main emphasis on the financial side of the issue.

6. Preparing a detailed and as convincing as possible presentation of your own future project.

What's next?

By submitting your application for consideration, you go into “waiting mode.” Most often, within three months after the deadline for submitting applications, funds review them and make a decision. The first few days of this period are devoted to checking the correctness of their preparation and the availability of a complete set of necessary documents. The fund then begins to study and compare the business plans provided to it.

They are most often assessed according to the foundation’s own point scale, which is used when forming the rating of participants. Particular attention at this stage is paid to the proposed options for solving the set goals and identified problems.

In addition, the reliability of the calculations provided is checked very carefully. If we are talking about a state fund, those entrepreneurs who have a certain amount to start their own business or develop it are especially noted. Business plans that require full funding are usually rejected.

When it comes to an existing business, serious attention is paid to the dynamics of its development. In case of issuing low indicators for the period of existence of the enterprise, it will most likely be refused. Those projects that the fund has already financed can receive additional points from the fund.

After the final rating of participants is formed, the commission decides who exactly can count on receiving a grant. Notifications are sent to the winners with simultaneous posting of the results on the official website of the foundation.

How to use the received grant?

What is a grant from a legal point of view? It should be considered as an agreement between a businessman in need of funds and the investor who issued them. That is why the first is now bound by a number of specific obligations that require fulfillment:

1. The funds received should be spent exclusively for the intended purpose, that is, only for what they were issued for.

2. Reports must be submitted in strict compliance with the agreed deadline.

3. In the event of force majeure or the impossibility of performing specific actions on the project, the businessman is obliged to immediately contact the fund with corrective proposals.

4. It is prohibited to interfere with the commission during the inspection and it is required to report in detail on the entire amount of funds received.

If facts of misuse of an issued grant or violation of other terms of the contract are revealed, the organization or fund has the right to demand its termination and return all allocated funds in court. This issue should be approached with full responsibility. Think about whether you are able to fulfill all the conditions set by the fund.

If the answer is negative, you will lose an excellent chance to receive additional funding for your business. The financial assistance provided by sponsoring organizations contributes not only to the development and support of individual entrepreneurs, but also to the improvement of the economy of the entire region.

Grants for training

Now let's talk about another type of grant - subsidies issued for research, educational and other non-profit purposes. This could be getting an education or completing an internship, etc. The point of training grants is to finance projects that can benefit society in the future. Their addressees are young, talented, ambitious people.

Such grants are most often issued by non-profit organizations. There is a whole list of detailed requirements for participants. As a rule, a considerable number of applicants fight for the privilege of receiving such a grant. After all, what is a grant in this case? This is an impressive amount that allows us to continue research or achieve other important goals that may remain unrealized without such funding.

Selection criteria

The requirements may vary. Applicants are most often selected according to the following criteria: the leader of the research team is not yet forty years old, the entire composition of the participants is undergraduate and graduate students or employees of a particular university or research institute. Participants must publish a number of scientific papers.

Most often, when reporting basic data about all competitors, it is required to provide information about the participation rate of each of them.

In addition, in this case there is the concept of an additional grant. This is the name given to the subsidy received by the winner in multi-stage competitions. At the first stage, the commission selects a number of participants who demonstrate the most obvious successes and achievements. But the competition does not end with them receiving grants. In the second phase, a reporting conference is held to summarize the interim results of the work of teams of young managers. The one whose story turns out to be the most convincing can count on second prize.

How to get a training grant?

Young talented students and graduates of Russian universities who do not have sufficient funds should think about this. This applies to persistent and inquisitive people. Presidential grants are provided for the most talented. If enough effort is made, everyone has a chance to receive a subsidy for further education within the walls of a foreign university.

Having received an international grant, you will have the opportunity not only to study at a prestigious Western institution, but also to radically improve your own knowledge of a foreign language. These subsidies are issued by universities, scientific foundations and public organizations. Moreover, the grant issued for training can be either full or partial.

In the first case, the amount of money is intended to cover the entire range of expenses, including travel, food and accommodation. This is a rather rare option. The issuance of partial subsidies is more common.

Who can count on him?

For many years, there has been a program under which many capable Russian students are entitled to free education in the United States. It is possible for a high school student to win a similar grant. Having won the competition, he travels to the USA and studies for several months at a local school with accommodation with an American family. All costs are borne by the US government.

Receiving such a subsidy is the dream of almost every schoolchild or student. But winning such a competition is not easy. The chances of receiving an international grant increase for graduate students and young university teachers. The age of the participants is most often no older than 30 years.

Before submitting your application, you should decide on the country in which you would like to continue your education. Then the list of universities offering similar programs is specified. After that, a meaningful, competent letter is drawn up, and the chances increase if it is sent to several different universities. The resume lists your own achievements and describes your plans for the future.

Similar competitions are held in Russia. Victory in them is easier to achieve compared to international ones only at first glance. Grants are awarded to the most promising young scientists or students. If your candidacy is rejected, do not despair. After all, the number of grants is most often limited. The most persistent and hardworking eventually win and it always makes sense to try again next year.

21Apr

Hello! In this article we will talk about business grants.

Today you will learn:

1. What is a grant and how to get it;
2. What are the features of issuing grants?
3. What government programs to help businesses operate in the Russian Federation.

It is no secret that some large business projects were brought to life thanks to support provided from outside. Taking advantage of this opportunity requires serious effort. Today we’ll talk about how to act correctly in this direction.

What is a grant?

This is free assistance in cash or in kind, which is used for scientific research, education and other purposes.

Both organizations and individuals can receive this assistance. Ultimately, you need to account for the use of funds.

It is worth noting that the state is interested in sponsoring small and medium-sized businesses, since its presence is a counterbalance to large companies, which, in their absence, become monopolists in the market, and therefore have a destructive effect on the state as a whole.

What role do subsidies play?

The use of a grant system supports projects that cannot initially be called profitable, but for society as a whole, a particular region, or a particular city, they play a truly important role. Not every activity is fully funded by the state; in such cases, support is provided in the form of grants.

Who can issue a business grant?

• Private foundations;
• State;
• Foreign organizations.

The requirements for the grant recipient are different in each case. Therefore, it simply doesn’t make sense to apply everywhere; it’s better to immediately choose a source that suits your type of activity and work to fulfill its conditions.

Now let’s move from the general to the specific, namely to grants to small and medium-sized businesses.

Legislative regulation

Issues of government assistance to small and medium-sized businesses are regulated by the Federal Law “On the development of small and medium-sized businesses in the Russian Federation.” In each region of the country there is a body that helps implement measures to help entrepreneurs.

Grants for start-up entrepreneurs

The dream of receiving a grant to start a business haunts almost every aspiring entrepreneur. But not everyone can apply for this, but only those citizens who are unemployed and registered with employment centers, or those who want to expand and increase the volume of an existing business.

State funds often issue grants to people who are just starting their journey as an entrepreneur.

In this case, preference will be given to the following categories:

• Citizens who fell under;
• Preferential categories (single mothers, persons with disabilities, and so on);
• Graduates of higher educational institutions;
• Citizens who are authors and owners of any innovative technologies;
• Citizens who use innovative equipment in their business;
• Taking part in various kinds of fairs and exhibitions.

In accordance with the law, those citizens who have reached the age of 18 and want to run their business in our state can receive a grant.

This assistance option can also be used by those who already have a certain amount of funds.

The state will compensate part of the costs in the amount of 500,000 rubles. Let's look at how to get such a grant step by step.

How to get a grant or subsidy

Step 1. Study the funds.

This also includes familiarizing yourself with the areas that are supported and studying the requirements for candidates.

You need to look for a suitable fund in your region of residence or in your city. The foundation can be public or private.

Step 2. Create a business plan.

Business support programs in Russia

Now we will consider several programs to support small and medium-sized businesses in the Russian Federation.

Support from the Skolkovo Foundation

They are provided in mini format (up to 5 million rubles) and in amounts up to 150 million rubles.

Companies operating in the following industries can apply:

• Related to space;
• Nuclear Research;
• Biomedicine;

To receive a grant, you need to prepare documentation.

It usually includes:

• The project itself;
• Presentation;
• Financial plan with its full justification;
• Estimate;
• Memorandum.

The application undergoes initial approval, then it is sent to the grant service, which verifies the veracity of the information received. After this, experts evaluate it using a ten-point system. If the score is higher than 5 points, the application is submitted to the grant committee for consideration. If the score is lower, the project is eliminated.

Ultimately, the committee makes a decision on the project by a simple majority vote. The commission consists of 12 to 14 people.

If the project is submitted to the committee for consideration, the chance of receiving a grant is high.

Grants from social VKontakte network

Most young people now know what social media is. VKontakte network. It is used to communicate with friends, work colleagues, and to find new friends. But few people know that this network operates a fund that sponsors start-up businessmen.

Note that grants are issued by Pavel Durov and businessman Evgeny Milner. And there are lucky ones who have become the owners of such support. The amount of the grant is not small, $25,000, and it is quite capable of becoming a help for a novice businessman.

Support from the Moscow Government

The grant amount is half a million rubles. A company that has been operating for no more than 2 years can apply for the receipt; there are also a number of restrictions on receipt.

A company that trades or sells tobacco and alcohol products will not receive a grant. Also, those whose activity is the gambling business cannot count on help.

To receive this subsidy, you need to apply to the Department of Science, Industrial Policy and Entrepreneurship. The application must indicate all the parameters of the project and outline the ways of its implementation. If the project is approved, the Department enters into an agreement with the winner within 15 days.

Grants from the Fund for Assistance to the Development of Small Enterprises in the Scientific and Technical Sphere

All the work of the fund is aimed at interaction with start-up companies in the Russian Federation. A candidate can apply for 1 million rubles or 200 thousand rubles every year for 2 years.

The fund usually supports small businesses whose activities are related to promising areas of the future. This can include the development of new materials, biotechnology, the creation of new instruments and apparatus, and so on.

The Foundation holds various events in large higher educational institutions and enterprises of the Russian Federation. The events also include holding a grant competition, the participants of which can be the authors of interesting and promising projects.

The application is reviewed by an expert commission, which decides whether to allocate a grant or not. Funds are not paid at once; they are divided into several parts.

Support for IT companies from Microsoft

This company is the most successful, and its creator is the wealthiest person in the world. The company supports talented aspiring businessmen in the IT field. The grant amount is 30 - 100 thousand dollars.

A distinctive feature of such support is that funds can only be allocated for the development or refinement of a project that already exists. These funds cannot be used for advertising and promotion of the project.

The mandatory requirements for the candidate are as follows: he must have a highly qualified team and use Microsoft technologies.

To receive support, a candidate must go through several stages and prove himself to be the best at each one.

At the first stage, you need to pass the selection process, according to the information provided in the application. It is necessary to characterize the project, talk about its positive aspects, and justify its benefits for society as a whole.

At the second stage, the candidate is interviewed by phone or Skype. Based on the results, a rating is compiled, and several projects will be allowed to defend before the selection committee.

Here, take into account an important point: the conversation takes place only in English, which means you need to speak it at the highest level.

At the third stage, a presentation is held in the office of the foundation itself. It should be meaningful, effective, and capable of interest. If it is successful, the project is approved and the grant is paid.

What to do with the funds received

The funds received as a grant can be characterized as a kind of agreement between an entrepreneur and an investor.

Therefore, the entrepreneur has certain obligations under this agreement that he must fulfill:

• All funds must be spent only in full accordance with the goals of the project;
• Reporting on the use of funds must be submitted within the time period specified in the contract;
• If any force majeure occurs, you must immediately contact the fund that issued the grant;
• The grant recipient cannot refuse to verify that funds are being spent correctly.

If the grant is not used for its intended purpose, or other terms of the agreement are not met, the fund may initiate its termination, as well as file a claim with the courts for the return of the allocated money.

Let us clarify that you must understand that receiving a grant is not the most difficult thing; you also need to fulfill the requirements of the fund that allocated it to you.

Conclusion

To receive a grant for your business, you need to stock up on time and patience. You will also need to develop a project and business plan, which will be considered by the commission. It's not an easy task, but all your efforts will be worth it.

Entrepreneurship, by definition, cannot be easy. Every day a businessman is forced to look for answers to dozens of non-standard questions and solve financial, production and personnel problems. At the same time, we must not forget about development and attracting new sources of financing. If a novice entrepreneur cannot cope with this on his own, no grants from the state for starting a business will help him succeed.

Let us add: careful implementation of instructions and recommendations in no way guarantees victory in the competition - the decisions of the commission will inevitably be subjective, based on personal experience and preferences. The only right decision is to do everything possible to make your business idea for a grant look more attractive against the competition.

Your business must be viable without outside funding, and grants are just a great opportunity to speed up the process of its development and do in a couple of months what would otherwise take years.

What is a grant?

Grants for small businesses 2019 can also be multiple: if the recipient has shown high efficiency in disbursing the first amount and has earned a good reputation, it will be much easier for him to receive subsequent ones. If the investment turns out to be unsuccessful, then in the future the amount may be reduced, or even completely refused subsidies.

Principles of distribution

Before you receive a grant to start a small business in 2019, you should understand the differences between assistance from government and private funds. More often than not, they deal with completely different audiences.

Help from the state is predominantly social in nature: the unemployed, university graduates, disabled people and military pensioners have a greater chance of winning the competition. In addition, each region has its own priority areas of development: this could be its own production, agriculture, the introduction of new technologies, business serving socially and economically disadvantaged populations. Accordingly, it is easier for entrepreneurs applying in these areas to receive a positive decision.

Public funds also emphasize long-term investment, tax efficiency, and project payback. An entrepreneur who wants to receive a grant to start a business in 2019 must, through economic calculations, confirm that the subsidized business will not close in a year or two, will continue to develop and will return the funds invested in it in the form of taxes. Taking into account the social significance, the planned increase in the number of employees at the enterprise will also be an important contribution: at least five jobs must be created.

Private and foreign foundations are more willing to work with cultural, economic and environmental projects. In addition, their areas of interest include various innovations and promising scientific research. Such funds cooperate with newcomers cautiously: preference is given to already proven candidates who have received and effectively used grants before.

Before choosing a specific fund and submitting an application, you need to find out such preferences by collecting information about previous winners: what activities they are engaged in, how long the enterprises have existed, how much grants they were given for start-up entrepreneurs, how many times they have won before. It will be useful to meet the winners in person and ask about the details and depth of development of the projects.

Requirements for applicants

1. Take one or more entrepreneurship courses;
2. Employ a certain number of employees;
3. Confirm with documents that he has not previously received other types of financial assistance;
4. Ensure a certain average annual turnover of the enterprise;
5. Prove the absence of debts on mandatory payments to the budget and taxes;
6. Meet the requirements for age, education or professional experience;
7. Register a business in the specified administrative district.

In the policy of financing with the help of public funds, preference is given to enterprises that have existed for 1-2 years, whose activities have a pronounced social component aimed at improving the living conditions of citizens:

• Education, work with children and youth;
• Culture, education, social activities;
• Social reintegration of citizens who have undergone addiction treatment;
• Employment of vulnerable groups of the population;
• Humanitarian assistance to victims of natural disasters or military operations.

Particular attention should be paid to the quality of the business plan. Economic calculations of profitability, product costs and payback points, tables with a list of purchased equipment, sales growth charts - a large amount of real initial data tells the commission about the seriousness of the candidate’s intentions. The stages and volumes of financing should take into account both attracted and own investments.

On the other hand, these efforts will be fully justified in case of victory. So, in agriculture, a business plan for receiving a grant is 1,500,000 rubles. can provide a beginning farmer with compensation for up to 90% of the costs of setting up and developing an enterprise. The farmer’s own investments will amount to no more than 150-165 thousand rubles.

It should be remembered that the possibility of receiving grants for small business development 2019 for certain types of activities is prohibited at the legislative level. It is believed that companies operating in such areas do not bring public benefit, do not produce material assets and do not contribute to the development of business and the state as a whole.

It can be:

• Credit or insurance organizations;
• Private investment and pension funds;
• Companies working with collateral, pawn shops;
• Financial brokers in the currency and securities exchange market;
• Enterprises engaged in the production or sale of goods subject to excise duties (alcohol, tobacco, cars and motorcycles, fuel);
• Lotteries, casinos, bookmakers and other representatives of the gambling business;
• Companies engaged in the extraction of mineral resources, both independently and on the basis of production sharing agreements as part of joint ventures.

Special purpose

The rules defining how to receive grants for small business development in 2019 also prescribe their intended purpose. Assistance cannot be allocated for the purchase of personal equipment, cars, or furniture.

At the same time, the purchase of production equipment, machinery and production lines is encouraged. In second place in terms of relevance are source materials, raw materials, and components. The third is long-term rental of premises. As for salaries for employees, the state refuses to subsidize such expenses, while foreign funds consider this quite acceptable.

The commission deciding who will receive grants for small businesses in 2019 is invariably positively impressed by the applicant’s willingness to implement the project on the principles of co-financing. The larger the share an entrepreneur allocates from his personal funds, the sooner he will receive support. Some funds consider 15% acceptable, others require at least half from the candidate.

When researching where to get a grant to start a business, you should pay attention to the profile and established preferences of the fund. If your main activity is in the field of your own production, agriculture, education, social support of the population, it is better to turn to state funds. Private investors prefer investing in companies engaged in the fields of economics, culture, sociological and marketing research, innovative developments, and ecology.

Paperwork

Each fund can establish its own list of documents required from an applicant for a grant for beginning entrepreneurs 2019, but there is also its main part, which includes:

1. Business plan of the project being implemented;
2. Enterprise registration documents, charters;
3. A copy of the applicant’s identity document;
4. Application for participation in the competition;
5. A covering letter with an emphasis on the relevance and relevance of the project.

The application must be drawn up in accordance with the requirements of the fund and contain a description of the problem, the goals of the project, methods for solving the tasks, risk management methods, amounts and stages of financing. The list of additional materials may differ from grant to grant, but most often they require:

• Copies of concluded agreements and contracts, on the basis of which a conclusion is made about what resources the enterprise has;
• A manager’s questionnaire to assess his professional and personal qualities;
• Letters of recommendation from contractors and funds with which the candidate has successfully dealt previously;
• Financial statements, statement of accounts of the enterprise.

All exchange of documents takes place electronically. Preliminary review of the application for compliance with the conditions of the competition held for the 2019 Small Business Development Grant takes from three to ten days. If the documents are submitted in full and the activities of the enterprise are in the interests of the fund, the application is submitted for consideration by the commission.

• Number of newly created jobs;
• Average salary of employees;
• Share of the applicant’s own investments;
• Scope of activity of the enterprise.

Studying the submitted projects and determining the winners can take from two weeks to two months, after which the results become open to public access on the official website of the foundation. Within ten days, entrepreneurs who received grants for small business development in 2019 must enter into cooperation agreements with the fund, which will indicate the obligations of recipients, the amount and procedure for financing, as well as reporting requirements.

Where to look for grants?

Information about ongoing competitions is not confidential, but at the same time it is not widely covered in the media. Funds reasonably assume that such promotions do not need advertising: interested parties will independently find the required grant through the Department of Entrepreneurship Support or Economic Development.

The local administration also publishes information about subsidies and measures to assist small businesses in the amounts available for financing from local budgets. Here you can get information about other state, private or foreign funds - such activities on the territory of Russia are subject to mandatory registration. We recommend paying attention to funds that have Russian-language representations - UNESCO, USAID, TACIS, GTF, New Eurasia Foundation, UN Development Program and others.

Private foundations, of which there are more than ten thousand in Europe alone, are filled with contributions from businesses founded by fairly famous people.

These include:

• Soros Foundation;
• Rockefeller Foundation;
• Ford Foundation;
• MacArthur Foundation;
• Bill Gates Foundation and others.

Corporate funds are usually founded by large companies and are engaged in financing projects that correspond to their field of activity. Thus, the Microsoft Foundation regularly allocates up to one hundred thousand dollars to teams of young programmers who create software for the company’s latest products.

Reporting

Taking care of how to win a grant to start a business is half the battle. The second is to form a positive reputation of the entrepreneur in the eyes of fund employees. To do this, it is not enough to submit detailed reports completed according to instructions on time. It is also advisable to take an active interest in how to manage financial assistance in the most effective way, receive regular advice and periodically remind the fund of its existence.

This behavior has a positive effect on your image and trust in you. Accordingly, in the future you can become one of the fund’s priority partners and regularly receive not only grants for entrepreneurs for 2019, but also other material and non-material assistance: loans or leased equipment on preferential terms, guarantees under loan agreements, rental of municipal property on reduced rates and much more.

Starting a business requires significant financial investments. If it is difficult for an entrepreneur to accumulate the required amount of funds, he can resort to help from the state or private individuals. There are special programs to stimulate business development. To participate in them you must meet a number of conditions.

Who can receive grants

Who are the grants available to? This depends on the specific program. However, in most cases this is the following list of persons:

• The entrepreneur is unemployed and is registered with the employment center.
• Entrepreneurs who already have a business, but want to expand it.

The funds provided under the program must be spent on the basis of a previously drawn up business plan.

Foreign grants are usually awarded to individuals who have previously successfully participated in programs. State programs, as a rule, are intended for beginner entrepreneurs. Preference is given to these categories of persons:

• University graduates.
• Professionals who have been laid off.
• Employees who have been laid off.
• Single mothers.
• Persons with disabilities.

That is, grants are provided to the most vulnerable citizens. However, other citizens may also be eligible for the program:

• Persons who already have a business that has been operating for at least a year.
• Persons who are developers of innovative technology.
• People who have entered into a leasing agreement to purchase equipment.
• Entrepreneurs participating in exhibitions and fairs.

If an entrepreneur expects to receive a grant, when starting a business, he can focus on which areas usually receive funding. 30% of grants are provided for businesses in the service sector. The state usually finances projects in the following areas:

• Agriculture.
• Education and science.
• Production.
• Subjects whose introduction creates new jobs.

Foreign funds prefer these areas:

• Ecology.
• Culture.
• Economy.

FOR YOUR INFORMATION! The more an entrepreneur’s business fits the fund’s preferences, the greater the chance of receiving a grant. Experts believe that educational courses, marketing agencies, auto repair shops and other service providers have the greatest chance of funding.

Procedure for receiving a grant

What do you need to do to receive a grant? You need to go through three steps:

1. Studying the requirements of a specific fund.
2. Submitting an application.
3. Preparation of documents.

Let's look at all these stages in more detail.

Requirements for applicants

Let's consider the requirements that are usually presented to applicants:

• Submitting a properly completed application.
• Protection of a business project.
• Implementation of the project in accordance with previously developed documentation.
• Providing a report for the funds spent.

The grant holder must pay special attention to business project development and reporting. The first will allow you to receive funding, the second will allow you to correctly account for the money provided.

Application review period

The processing time for applications depends on which grant the entrepreneur is applying for. They can vary from a month to a year. You can find out about current grants and deadlines at the Entrepreneurship Development Center or the Ministry of Economic Development.

Documenting

To receive a grant, you need to prepare the following documents:

• Application.
• Entrepreneur's application form and copy of passport.
• Confirmation that the person knows the basics of entrepreneurial activity (for example, a certificate of completion of courses, a diploma of higher education).
• Certificate of registration of individual entrepreneur.
• Document confirming payment of taxes.
• A paper about a person creating jobs.
• A business plan, each point of which is rational and justified.

This is a general list of documents. The Fund may require additional paperwork.

When applying to the fund, you should consider these recommendations:

• Sometimes an entrepreneur is denied financing because the amount indicated in the application is too small. Therefore, it is recommended to overestimate it. When determining the required amount, you need to take into account the size of the commission.
• It should be borne in mind that financing is usually carried out in installments. We need to think about how this or that part of the funds will be spent.
• Even if the entrepreneur wins the competition, it must be taken into account that the funds will actually be issued only after 2-12 months.

To increase your chances of funding, you need to take into account the potential requirements of investors.

How does the commission decide on funding?

A special commission is created to review applications. Its representatives check the submitted documents and business plan. For a plan to be approved, it must meet these characteristics:

• Necessary financial indicators and their rational justification.
• A description that the investment will actually work.
• Presentation of information in such a way that the commission understands the prospects for business development and its profitability.
• Indication of areas of financing.
• An indication that the entrepreneur intends to create jobs. The more jobs it creates, the greater the chance of receiving subsidies. This is due to the fact that the state is fighting unemployment, and therefore provides funds primarily to those entities that will allow the unemployed to find work.

Receiving a grant does not mean that the business will be opened solely with the funds provided. An entrepreneur must also have his own capital. It is desirable that it be approximately 2 times the size of the subsidy.

When an entrepreneur is denied financing

Full compliance with all conditions does not at all guarantee receipt of a subsidy. The commission may refuse for these reasons:

• The entrepreneur had already worked in the specified field of activity, but his experience was negative.
• The person has been found to have misused grant funds in the past.
• An entrepreneur opens a business in an area that is not subject to government funding.

Some areas of business activity are not financed. This is due to the fact that they are not considered socially significant and do not stimulate the economic condition of the region. For example, these are the following subjects:

• Credit organizations, investment funds, pawnshops.
• Organizations dealing with currency.
• Lottery and bookmaker companies.
• A company that produces goods subject to excise taxes.

It makes no sense to demand subsidies for such enterprises.

Where can I get a grant in 2018?

Government subsidies are provided by these entities:

• Small Business Development Committee.
• Economic Development Committee.
• Municipalities.
• Industry committees.
• Department of Entrepreneurship.
• Fund for the promotion of small businesses in the scientific and technical field.

An entrepreneur can also turn to private funds. For example, young startups are financed by Pavel Durov and Yuri Milner. The funds are allocated by the Skolkovo Foundation. It provides from 5 to 150,000,000 rubles for scientific developments in the field of space technology and biomedicine. IT startups are funded by Bill Gates. However, to receive foreign funds you need to meet fairly stringent requirements.

Almost every individual entrepreneur would like to receive a grant to develop their business.

Unfortunately, not every person has a sufficient amount of starting capital: only a few of us have the opportunity to turn to a wealthy relative for help or save money from our salary. Convincing an investor of the profitability of a business idea is also very difficult.

And in this situation, it is worth paying attention to all kinds of grants for business development, which are also provided in 2019.

What is a grant and the basic principles of their distribution

A grant is money issued by the state on a gratuitous (i.e., non-repayable) basis. The main requirement is that the business idea must be significant to society.

To the number main principles of distribution grants for small business development include:

These are the basic principles governing the provision of grants to citizens to conduct business in the field of small business. In each region of our country they can be supplemented. Exact information can be found from the authorities or on the official website of the city.

Who provides this assistance and for what purposes?

A grant to a citizen for running a business in the field of small business is provided special fund, existing in every subject of the Russian Federation. An applicant for its development is expected to plan to open a business that is promising for the country. At the same time, funds cannot be spent at your own discretion: it is necessary to decide in advance the purpose of their direction, which cannot be changed later.

It is also possible to receive a grant from individuals. In this case, the activities of an individual entrepreneur must have one of the following directions:

• Agriculture;
• textile industry;
• working with all kinds of franchises, for example, real estate agencies;
• the field of information technology.

These are the areas of activity that are currently most popular among private investors.

Requirements for applicants

One of basic requirements to an applicant for a grant for small business development, as mentioned above, is that his activities must relate to the field of small business. Comprehensive information on this issue is presented in Federal Law (FZ) No. 209. This regulatory legal act contains signs by which the activities of an individual entrepreneur (IP) can be classified as a small business.

So these include following criteria:

• complete the registration procedure in accordance with all existing requirements;
• organize a certain number of jobs;
• reach a certain level of income (per year);
• complete courses at the small business support fund in your region.

These are the basic requirements for applicants for a small business development grant. It is also required to prepare documents confirming the lack of government support previously.

Procedure and conditions for receiving

Now let’s look in detail at what needs to be done to receive a grant for business development in the field of small business in 2019. The first thing you need to do is find one in your region of residence. small business support fund.

In it we will learn everything you need and begin to develop a business plan. It should be as detailed as possible, since this directly affects the decision of the members of the special competition commission.

We also prepare all the necessary documents and send the application to the employees of the above-mentioned government agency.

Independent experts render a verdict based on the following factors:

• economic feasibility of a business idea;
• the likelihood of the product being sold on the market;
• technical novelty, etc.

No less important is the value of the business idea for society, as mentioned earlier.

It should also be noted that in the vast majority of regions of our country, in order to receive funds for the development of a business in the field of small business, the applicant must take appropriate courses (for example, in). In addition, before submitting an application, you should make sure that there are no various types of debts to the state (at the federal, regional and local levels), and if there are any, solve the problem.

List of required documentation

Gathering documents to apply for a small business development grant in 2019 is not difficult.

You will need to prepare the following documentation:

The authorities of a constituent entity of the Russian Federation may, at their discretion, expand the presented list.

In what cases is refusal possible?

Not all applicants receive funds from the state for the development of their small business, even if they fully comply with the conditions described above. And here a completely logical question arises: “What’s the matter?” Let's try to figure it out.

One of the main reasons why members of the special competition commission refuse to issue funds to individual entrepreneurs is the citizen’s lack of experience in this activity. Not to mention the situation when he has negative experience in organizational activities.

A refusal to receive funds for the development of a business in the field of small business can also be justified by the failure of an individual entrepreneur to use past government support or banking products. From all this we can conclude that even a minor stain on one’s reputation can put an end to the possibility of receiving government support in the form of a free subsidy. Therefore, before deciding to seek help from investors, including the state, and/or a credit institution, you should weigh all the pros and cons of this venture and carefully analyze your strengths.

To increase the likelihood of receiving a grant for the development of a small business, you should remember one important point. Funds from the state are often provided in installments. Therefore, for the first time, it is best to ask for a small amount: having demonstrated success in using it, you can count on a more serious investment in the future.

The rules for providing state assistance for business development in the Nenets Autonomous Okrug are discussed in the following video: