Small Business Grants Key Terms

Knowing the right terminology gives you an edge when competing for small business grants

The recent global economic shift has resulted in an increase in the number of small businesses seeking alternative funding sources. Recent layoffs have more people than ever before seeking to start their own businesses. That means more small businesses are competing for the revenue that grants can provide.

Small business grants are not as widely available as some might lead you to believe. For the grants that are available, it's important to know the vocabulary as you navigate the small business grant application process.

Grants versus loans

Grants are money you never have to pay back, whereas loans do have to be paid in full. The government does not widely offer grants to businesses unless there is a specific angle that meets a specific requirement of the grant, such as for education or research. The government does offer a wide variety of low interest small business loans for start-up companies and for companies already in existence.

Grant proposal

The grant proposal is the document that persuades the grantor that your business meets the requirements of the grant. It also provides an outline of what you intend to do with the funds to secure the future of your business and fulfill the purpose of the grant.

Boilerplate

Boilerplate is the term given to those portions of a proposal that are standardized, such as the business description, and used in a variety of proposals to save time. Whether a seasoned grant writer or someone who is new to the process, it's important to know terms like this so you can navigate the grant application process in a way that is efficient and yields revenue for your company.
Manchester College provides a thorough explanation of what a boilerplate includes, along with a comprehensive glossary of terms for would-be grant writers.

Authorized Organization Representative (AOR)

The Authorized Organization Representative (AOR) is the individual who has been designated as the person who communicates and submits the grant application package to the grantor. This person is authorized to make important decisions and sign appropriate documentation as required by the small business grant application process.
GrantAbility.com provides a helpful glossary explaining what AORs are, as well as other important small business grant key terms.

Project grants

Project grants are awarded to companies and organizations for a specific period of time and for a very specific purpose, such as education or research. Most federal grants offered to small businesses are project grants.
Review American Resource Discoveries for an explanation of project grants, as well as tips on funding sources for minority business owners.

Block grants

Block grants are those not designated to a specific category. More flexibility is applied when distributing these grant funds.
WomensNet.net is a helpful resource with explanations of block grants and other key terms. The website also provides information specific to women business owners, including the Amber Grants for Women Business Owners.

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