Indiana Small Business Grants

If you're a small-business owner in Indiana you live in one of the few states that currently have a fair amount of grant funding available. The economic conditions in the United States over the last couple years have made things pretty tight all over the country, so finding grant money is more difficult. In Indiana there are a number of private institutions still in the grant making business as well as one particular state program that works in partnership with local municipalities and businesses in order to promote manufacturing, information technology, research and development, and logistics.

The place to start your search for small business grants in Indiana is the Indiana Economic Development Corporation (IEDC). The IEDC is a state agency whose sole mission is to promote the development and long-term survival of business and opportunities in the state of Indiana. They fulfill their mission by providing counseling, planning assistance, some limited funding, and a clearinghouse to match small businesses with organizations that can help meet their needs.

IEDC Industrial Development Grant Fund

The state's Industrial Development Grant Fund is a public/private initiative aimed at helping both existing Indiana businesses with infrastructure projects and out-of-state businesses who need relocation assistance. The block grants require the participation of local and county governments as well as the businesses themselves. Businesses must meet certain qualifications in order to receive block grant money, including a requirement to match the grant dollar for dollar. In addition, the county and local governments must also make a dollar for dollar contribution.

The matching funds portion of this grant program is one of the reasons why Indiana officials believe it's been so successful. It requires businesses receiving the block grant money to contribute significantly out of their own funds. This leads to a more prudent business that might otherwise be more reckless if they had no money of their own money invested.

Other Small Business Grants in Indiana

At this time there are no other specific grant opportunities offered directly through the state, but there are a number of privately funded opportunities available. To get a lead on some of these opportunities you can visit the Indiana office of the Small-Business Administration, your county economic development office, your public library, and your chamber of commerce. All of these entities typically act as clearing houses for this type of information. You might find electronic databases, printed documents, business periodicals, and so forth, all listing grant opportunities available to small businesses.

Please understand that the federal government does not make any direct grants to businesses, in any way, shape, or form. Federal grant money goes either to the states in the form of block grants, or to educational institutions, nonprofits, or other organizations that benefit the public interest. The only time the federal government can provide direct funding in the form of grants is when extraordinary circumstances exist. Even then it takes a special act of Congress to approve such funding.

How to Apply for Indiana Small Business Grants

If you are fortunate enough to find grants which you're eligible for, you'll need to get information from the grant maker about how apply. The application for grants is different from one entity to the next, so we can't give you a specific process here. But we can say that you'll most likely have to write a grant proposal which explains why you're asking for the money, what you plan to do with it, and how it will benefit your business and your community. Every grant proposal that meets minimum guidelines will be reviewed by the grant making organization.

Undoubtedly there will be plenty of competition for the limited amount of funding available in Indiana. Therefore, business owners would do well to learn how to write effective grant proposals ahead of time. A good way to do this is to look for instructional resources online or at your local library, and then practice by writing mock proposals. You can have those proposals reviewed by other local business owners who are already successful in their fields. With enough practice you can get very good at grant writing.

If you don't want to put forth the effort in learning how to do it yourself, you can hire a grant writing service to do it for you. Just be sure that you know their fee upfront. It wouldn't make any sense to pay an agency $2,500 just to receive a $5,000 grant.

Additional Funding

If you're requesting grant money because you're expanding an existing business, you might be able to get all the money you need through one or two grants. But if you're starting a business from scratch, it's highly unlikely that grant money alone will meet your needs.

National statistics suggest that it takes the average small business at least three years before it's profitable. That means you'll need at least a couple of years worth of funding commitments if you expect your business to survive. Grants simply don't provide that much money.

Be prepared to also apply for small business loans, look at venture capital, and even open up investment opportunities to your friends and family members. When it comes to funding your new business just remember to think outside the box. The more funding sources you can come up with, the more likely it is your business will succeed.