Small business grants are gratuitous monetary aid provided by state and international organizations
What are small business grants?
The state gives money to businesses for a specific purpose. For example, to train employees, buy equipment, or rent real estate. There is no need to return this money if the business has spent it for its intended purpose.
A company receives a grant for participation in an international exhibition: it can spend it on tickets, entry fees, a booth, and promotional booklets. The company used the money to buy phones and printers for the office, but you can’t do that. That is a misuse of the grant. The money will have to be paid back.
In most cases, businesses don’t pay tax on the grant. But there are exceptions. It is worth consulting with an accountant about the taxes on the grant you choose.
How a business can get grants for small businesses from the state?
Any business can receive a grant if it meets the requirements of the grant and has no tax arrears. Applicants need to apply by the deadline and submit a business plan. There is no limit on the number of applications. Businesses can apply for more than one grant at a time. To find out the eligibility requirements, and the list of documents and to apply for the grant, contact the business support office, which announces the grand opening.
After receiving a grant, a business has to report on what the money was used for. Usually, the agency warns right away about the deadline for the report and what exactly needs to be provided. If the report shows that the business spent the money improperly, it will have to return it.
What is important to remember
-Given at no cost and irrevocably for certain business purposes. The exception is non-purposeful spending. In this case, the business must return the money.
-It is not counted in income and is not taxed.
-It can be claimed by those who meet the requirements of a specific one.
-List of available grants can be found on the website of federal and regional business support agencies.