State support for small businesses is an important area of ​​economic policy: today there are more than 5.5 million small and medium-sized businesses operating in Russia, which account for 21% of the country's Gross Domestic Product.

It is planned that by 2030 the share of small and medium-sized businesses in the Russian Federation’s GDP will reach 45%. That is why diverse government support for small businesses has entered its active phase.

Basics of government subsidies

Support for individual entrepreneurship and small businesses today in Russia is provided at the legislative level.

The program “Stimulating Economic Activity” finances the activities of entrepreneurs.

The program to stimulate economic activity in 2019 provides additional funding, which is called a subsidy.

Subsidizing is a targeted and free government payment for starting a business.

The money will not have to be repaid, as is usually done when borrowing or taking out a loan.

According to preliminary information from the Ministry of Economic Development of our country, only 11 billion rubles were allocated for the entire 2017 program, while in 2014 this amount was more than 20 billion, and in 2015 – almost 17 billion rubles.

These funds are divided among all subjects of Russia on the basis of competitive procedures. Due to a noticeable reduction in support, the regions of the country will have to independently determine the priority areas of business activity for financing.

In each region of our country, the relevant authorized body is responsible for the implementation of state support measures for small businesses. You can find a complete list of them on the website of the Ministry of Economic Development of the Russian Federation.

Types of financial support for entrepreneurs

In 2019, the size of the subsidy will depend on the region of residence and will be issued for the following needs:

• purchase of raw materials;
• purchase of equipment;
• purchase of consumables;
• intangible assets;
• repair work.

The subsidy program for individual entrepreneurs allows start-up businessmen to receive government funding. The size of the subsidy depends on the region in which the businessman lives. The average payment amount is 60,000 rubles.

Important! When starting your own business, you should keep in mind that government subsidies cannot be obtained for the production of tobacco products or alcoholic beverages.

Financing is carried out on a non-refundable basis and only if the businessman has start-up capital.

An entrepreneur can use the funds received to open and develop his business - for example, purchasing equipment, raw materials, carrying out repair work or purchasing intangible assets.

Types of financial support for the development of small businesses can be approved by the executive body. After receiving state financial assistance, the entrepreneur must provide a report on the use of funds. This means that every person who receives a government subsidy is responsible for its distribution and must spend the funds correctly.

The rest of the financial assistance will have to be returned, and if it is discovered that the allocated money was spent inappropriately, the entrepreneur will have to return the entire amount to the state.

How to get a subsidy for small business development

Any unemployed citizen of the Russian Federation in 2019 can become a recipient of a subsidy for the development of small businesses.

Funding is provided jointly with the Employment Center.

A person can be recognized as unemployed if he is registered with the Employment Center at his place of registration.

A potential entrepreneur with a ready-made business plan should contact the Employment Center.

A separate place in the business plan is given to the cost of the project, taking into account own and subsidized capital. It is also important to carry out calculations and analysis. To do this, it is necessary to calculate the expected revenue and profit, the profitability of the project, the payback period, etc.

A competent business plan is the key to obtaining government funding.

After agreeing on a business plan with the Employment Center, an unemployed citizen applies to the Federal Tax Service with an application to register as an individual entrepreneur.

The period for registering an individual entrepreneur, established by regulatory documents, is 5 working days. After receiving the Individual Entrepreneur Registration Certificate and an extract from the Unified Register, the aspiring entrepreneur again applies to the Employment Center with an approved business plan, an application for a subsidy, a passport and documents confirming the status of an individual entrepreneur. This is how an agreement on subsidizing activities is concluded between a businessman and the state.

In order to receive a subsidy from the state to start a business, you need to draw up a business plan correctly and in detail.

After signing the documents, the Employment Center transfers funds to the entrepreneur’s personal account.

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Features of receiving subsidies for small business development

The main feature of receiving government funding for small businesses is that there is no need for repayment, since the funds are provided free of charge.

In return, the state receives a new small enterprise, new jobs for the population and another cell of the market economy.

When concluding an agreement on subsidizing business activities, a businessman must know that he assumes a number of obligations. The main one is reporting.

Within 3 months after receiving funds from the state, the entrepreneur must submit a report with supporting documents on the use of the subsidy to the Employment Center. Fiscal and sales receipts, invoices and paid payment orders, receipts and other documents can be submitted as confirmation.

The report must correspond to the paragraph of the business plan, which indicates the intended use of funds.

In case of partial or complete non-confirmation, the entrepreneur is obliged to return the subsidy amount to the state in full. Another feature of the subsidy is fixed in the terms of the contract. According to the agreement, the activities of the state-funded business should last at least a year.

Thus, the state excludes the existence of fly-by-night companies.

Types of subsidies

The type of subsidy can be established by each subject of the Russian Federation. State aid is of the following types:

• business support – 25,000 rubles;
• opening a business in 2018 with the possibility of increasing the subsidy for a new workplace - 60,000 rubles;
• opening a business provided that the entrepreneur is the only parent of the child, is unemployed or has a disability - 300,000 rubles.

A subsidy can be received not only for starting a business, but also for its development. At the same time, you can have your own production ideas for a small business or open it as a franchise. A sum of money is issued to individual entrepreneurs and small businesses.

Subsidies for individual entrepreneurs in Moscow

Entrepreneurs and small businesses registered in Moscow not only have more opportunities for business development, but also receive special privileges available only to businessmen in the capital. One of these benefits is a business development subsidy. The size of this subsidy reaches 500,000 rubles.

To receive financing, a start-up entrepreneur must contact the State Budgetary Institution “Small Business of Moscow” with a corresponding application and a package of documents. The condition for receiving a subsidy is an activity carried out for at least six months and no more than 2 years. To confirm the success of the business, the entrepreneur provides financial statements, rental agreements, cooperation agreements, and so on.

The application with a package of documents is reviewed by a special Industry Commission.

Among the priority areas of subsidies are the innovation sector, agriculture, healthcare, education, social sphere, hotel business and tourism. After submitting funds, the entrepreneur is required to report on the intended use of the financing, as well as confirm the indicated financial indicators.

Thus, the state controls not only the legality of the use of subsidies, but also the influence of the enterprise on the economic environment of the country.

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To quickly resolve your problem, we recommend contacting qualified lawyers of our site.

Last changes

The purpose of receiving a subsidy for an entrepreneur in 2019 is to open a new enterprise or expand an existing one.

The advantage of this financing option is its gratuitous nature, but the main disadvantage is a large number of conditions and a strict selection procedure.

The Government plans to launch a geomarketing navigator system.

For this purpose, over 200 business plans were developed in 75 areas of small business activity. With the help of this system, it will be easier for entrepreneurs to choose an area or niche to open a small business.

If the project receives approval, then government support will be a good help for entrepreneurs.

There are several other types of assistance from the state to budding entrepreneurs:

1. Renting real estate on preferential terms.
2. Acquisition of state property at preferential prices.
3. Use of infrastructure specially created by the state for the development of entrepreneurial activities (technology parks, offices, business incubators, etc.).

Are you young and have decided to start your own business, but have no money? Or do you want to expand your business, but all cash flows end up in working capital and if the required amount is extracted from it, the solvency of the business will be shaken? The solution to this problem in 2018 could be grants for small business development.

Basic conditions for receiving a grant

This year, it is planned to allocate about 9.6 billion rubles from the Russian budget to support small and medium-sized businesses. It is worth noting that this amount is significantly lower than in previous years. Therefore, in order to become a happy owner of financial assistance, you will have to make even more efforts. At the same time, you need to remember that you will be personally responsible for the misuse of funds.

If you decide to try your luck and apply for a grant, be prepared that you will need to meet mandatory requirements to receive grant investment financial support.

The conditions for receiving and using a grant for small business development are as follows:

1. It is necessary to submit an application in which you indicate the goals and objectives of the activity.
2. It is necessary to indicate goals, objectives and the amount of additional financial investments. It should be taken into account that during the consideration of the project it will be impossible to adjust the business plan.
3. When applying for a grant for the first time, you should not go too far - indicate real numbers: ask for the minimum to make your business plan a reality.
4. Having an original project increases the chances of receiving funds by 50%.
5. Funds from the grant are received in tranches for each. And in some cases, goods are received instead of money.
6. Every penny of sponsorship funds must be spent in accordance with their intended purpose.
7. During the implementation of the project, it is necessary to provide correctly completed reports in a timely manner, in accordance with the schedule.
8. If a grant is awarded, you will need to pay income tax on the amount of funds received.

Required documents

Each participant in the financial assistance program must prepare a package of documents for a future project before submitting an application.

To receive a grant from the state, you must prepare and submit for consideration within a certain period of time:

• table of contents;
• summary;
• introduction;
• statement of the problem;
• goal and objective of the project;
• methods for solving assigned problems;
• risk assessment;
• budget amount;
• applications and add-ons.

Be sure to include a cover letter with your application explaining why your project is important and deserves support.

If you are applying for a grant from private foundations, including foreign ones, additional documents may be required. Their list is different in each case - it is compiled directly by the grant director.

Who can become the owner

When selecting participants in the small business support program, different criteria apply in different cases.

If funding is provided by a foreign fund, then the main thing for it is the full targeted use of funds in accordance with the approved business project. Therefore, as a rule, foreign sponsors are more willing to invest in business representatives who have previously received grants.

It is important for the state to ensure employment and social protection of the population. Therefore, every year local authorities determine priority economic sectors for their region. The state is most interested in the development of these industries, which means that it will be easier for entrepreneurs who have chosen the appropriate line of activity to receive a grant.

And if foreigners prefer to give money to experienced “players”, then the state gives preference to newcomers who need a confident start:

• university graduates;
• unemployed;
• those who were laid off;
• single mothers;
• disabled people;
• retired military man.

For what purposes is it allocated?

According to statistics, 30% of individual entrepreneurs who received a grant are involved in the service sector, 20% in production, and only 12% work in the trade sector.

It is easier to get a grant for renting premises, purchasing fixed and working capital (purchase of raw materials and materials), if the project is shared (part of the expected costs for the purchase of equipment is covered by the individual entrepreneur from his own funds, and the rest of the project is allocated by the investor).

Domestic funds, as a rule, refuse to allocate funds to pay salaries. Foreign sponsors have no objections to financing this expense item.

When providing a grant for the development of small businesses, there is a clear difference between state and foreign funds in determining the priority areas of activity for which funds are allocated.

If support is needed in the field of production, agriculture, natural sciences and education, the state will willingly allocate funds.

Private domestic funds are ready to finance innovations in the field of economics and business. If you want to engage in research in the field of ecology, economics, democracy, culture and society, then you should contact foreign foundations for funds.

In terms of the number of grants provided, the leading business startup projects are:

• clearing companies;
• training courses;
• design bureau.

Where can I get it?

In 2018, many organizations are ready to provide grants for small business development.

The state represented by:

Private foundations, individual investors and large business philanthropists:

Skolkovo Foundation– allocates from 5 to 150 million rubles for scientific developments in the field of biomedicine, nuclear, space and energy efficient technologies. Grant applicants must:

Prepare a package of documents, which includes:

• memorandum;
• presentation;
• project roadmap;
• financial plan;
• estimate and justification of the project.

Submit an application to the cluster, which, if approved, will be sent to the grants service to verify the accuracy of the information provided. After this, the application will be reviewed by experts and assigned points from 1 to 10. If the score is higher than 5, it will go to the grant committee, where the decision to issue a grant is made by voting.

Foreign organizations:

Microsoft Seed Fund. Bill Gates is ready to give startups – young IT companies that develop software or information storage systems – up to $100,000. The main requirements of the fund are that the grant applicant has a team of professionals, participation in the Microsoft BizSpark program and the use of the latest Microsoft technologies (Windows Azure, Windows Phone, Windows 8, Kinect).

In order to receive this grant, you must submit an application and be included in the list of participants. After this, you will have a telephone/Skype interview, and then, if successful, you will be able to present your project in English to the members of the selection committee. The final stage will be a speech at the main office of the foundation.

Grants for small business development in Altai: Video

Running a business is a complex and rather risky activity, which does not always end in success. Many people are afraid to start doing business because they cannot clearly predict future developments.

But a small business, if successfully implemented, benefits not only its owner: it provides jobs, increases the number of goods and services on the market, and contributes to the development of the economy of the region and the entire country as a whole. That is why many states, in particular ours, offer aspiring businessmen to receive a subsidy for opening a small business in order to stimulate their activities and help with starting a business.

A grant from the government is an excellent opportunity to significantly facilitate the launch of your business activity, cover the need for initial large investments, purchase work materials, tools, hire workers, etc.

Of course, no one will give out money just like that - most of these programs provide for certain reporting, based on the results of which the success of the company or individual entrepreneur is assessed. However, this is a great opportunity to get a legal source of funding and start your business with significantly less effort and problems.

A grant is in some way an analogue of the well-known concept of “subsidy”, only here the money is issued in separate parts. Each subsequent part (tranche) can be received by the entrepreneur only if he wisely managed the previous grant amount and achieved the goals planned for it.

The foundation or institution that provides the grant requires a detailed report on the use of the money received and the results of its application. If the entrepreneur is all right with this, and he proves that he spent money on the business and received the expected positive result, then he is given the next tranche of the grant.

Some grants from the state or private foundations may be issued not in the form of money, but in the form of equipment and materials required for business development. It is also possible that the organization itself directly pays for the items purchased by the businessman for his business. State subsidies in most cases have the following distinctive features:

• They are allocated once. Most often, one entrepreneur receives assistance only once. For the next tranche, the company must show outstanding results of its work and be of some importance for the country and the economy;
• Money is given free of charge. The Law on the Peculiarities of the Development of Small and Medium-Sized Businesses stipulates that finance is provided by the state completely free of charge;
• It is also necessary to observe the principle of intended use. If money is allocated for the implementation of a specific business plan, then it should be spent specifically on its implementation. Otherwise, they will have to be returned.

It is also necessary to remember that some areas of private activity are not subject to subsidies. This applies to the gambling business, the provision of banking services, lending, insurance to the population, as well as the manufacture of products on which excise taxes are required to be paid.

Grant principles

To have a chance of receiving one-time cash assistance from the state, it is necessary to submit to the relevant authorities an idea or business plan that is in demand by society and the country’s economy. A subsidized business in the future must bring clear benefits to society and the country - this is the most important requirement. There are the following basic principles for the distribution of grants:

1. The very first thing is that assistance is provided specifically to representatives of small businesses who, at their city or district level, provide the population with any useful goods or services;
2. Only those businessmen whose business has been actively developing for at least 12 calendar months have the right to take part in the struggle for financial assistance. This requirement is necessary in order to weed out the newest and most unreliable start-up entrepreneurs and reduce the likelihood of fraud and waste of finance to a minimum;
3. Another important requirement is the absence of a negative credit history, as well as any claims from the country’s tax authorities.

The applicant for assistance provides a certain list of documentation to a special commission, and it decides whether to issue him a grant or not.

Where to go for help

When a person sees the promise of his business, has been successfully running it for at least 1 year, but needs to attract additional sources of funding, he can seriously think about receiving a government grant. Where to go in this case, who to contact?

In order not to miss the start of the next program to support entrepreneurs, you need to regularly review information from the official authorities of the city or region, the Department of Economic Development or Entrepreneurship Support.

This can be done both on websites and thematic forums, and by personally communicating with people associated with this activity. Grants are also issued by the Small Business Development Fund and many private foundations, for example, the well-known Foundation of Soros, Bill Gates, Ford and other richest people on the planet. But it is better, nevertheless, to turn to the state.

You can also receive a subsidy for your business from the employment center. This is a whole separate story, which in general terms looks like this. First, a person must officially obtain unemployed status and register with the employment center, for which he will need to provide:

• Passport;
• Work book;
• Documentation about education and marital status.

The next step is that a person, either independently or with the involvement of appropriate specialists, must draw up a business plan for future entrepreneurial activity. Next, the plan is given to an expert commission for study, and here one of three options is possible:

• The business plan is recognized as worthy and the person receives a grant;
• The commission can only help with a small amount required to register the status of an entrepreneur;
• The plan is considered unpromising and the request is rejected.

When working with various ministries, departments and private foundations, there are nuances that need to be clarified on the spot.

Typical list of required documentation

Depending on where exactly the entrepreneur turned for financial assistance, he may be presented with various requirements for preparing a list of necessary papers and documents. In most cases, a person will definitely need:

• A developed and well-thought-out business plan for a future project that requires grant money;
• All required documentation confirming the registration of the enterprise, accompanying charters;
• Copies of documents that confirm the identity of the applicant;
• An application of the accepted form is drawn up with an appeal to the organization regarding participation in the competition for a subsidy;
• Also, most often a covering letter is required, in which the citizen must justify the relevance of his business plan, the relevance of the project in his city, region, or country.

In the application itself, it is also necessary to follow the requirements of the fund or organization, and also indicate the existing problems of the city, district, population, methods of solution, your project in brief, its features, relevance, ways to minimize risks, the desired amount of financing and time frame.

Various additional papers may also be required, for example, copies of contracts concluded by the company with clients and partners, a detailed questionnaire of the manager, letters of recommendation from the entrepreneur’s partners and other funds that financed him, some data from the field of financial reporting and accounting.

Starting a business in education also no fundamentally different from other areas of activity. A relevant topic, a realistic and feasible business plan, specific practical activities and a predicted result - all this will help representatives of the educational field of activity receive grants. Often private foundations, such as the Soros Foundation, respond to such plans.

conclusions

Every entrepreneur in our country who has been running his own business for some time has the right to financial assistance from the state. Several small business financing programs have been developed for this purpose, but in order to become a participant in them, you need to try and prove yourself well, draw up a thoughtful and feasible business plan.

You can also contact private organizations, where it is often possible to attract good investments.

Such a system can help a business in its development and become a good support in difficult times, reach new heights and increase its profitability.

Many individual entrepreneurs are interested in the question of how to receive a grant for small business development in 2019. This issue has become especially relevant in conditions of economic instability. Let us say right away that each region of the Russian Federation has the right to independently approve the requirements that an applicant must meet in order to receive funds. In general, the candidate must submit an application and comply with the terms and conditions of the specific competition.

In our material today, we will look at what a grant is and how small businesses can get it.

What are grants and how are they distributed?

A grant is a sum of money provided free of charge and irrevocably to entrepreneurs by a Russian (international) organization (grantor) for the implementation of a project that is of public value.

In order to receive a grant, a small business representative needs to familiarize himself with the basic principles of its distribution, which boil down to the following:

1. The business entity must be active and belong to the sphere of small business. The activities of an entrepreneur, as a rule, should be related to production or trade.
2. On the day of submitting an application for a grant, the individual entrepreneur must have been open for at least 12 months. Thus, it is literally impossible to receive a grant to start a business. At the time of submitting the application, the individual entrepreneur must already be registered. Another thing is that his business may not be as developed as he would like.
3. Applications for grants must be reviewed by special competition commissions, which are formed under regional local governments.
4. The applicant's credit history must be impeccable.
5. The candidate must pay taxes regularly and conscientiously.
6. The procedure for providing grants for the development of small businesses in 2019 is regulated by a bilateral agreement concluded between the regional small business support fund and the entrepreneur who receives the grant.

It should be noted that regional programs that are aimed at supporting budding businessmen must comply with all of the above requirements and principles.

Requirements for applicants

Federal Law No. 209 defines the circle of entrepreneurs who have the right to apply for a grant. The law lists all the criteria by which a business entity can be classified as a small business. Please note that local authorities may extend these requirements within the scope of their authority.

Thus, an individual entrepreneur who expects to receive a grant for small business development in 2019 must:

• meet the requirements for the number of jobs;
• meet the conditions of registration;
• receive a certain amount of revenue (per year);
• have documents confirming the fact that the individual entrepreneur has not previously received assistance from budgetary organizations in the form of grants and subsidies;
• undergo training in a special organization that operates under the regional small business support fund.

The social component also plays an important role in the distribution of grants among individual entrepreneurs. This is what people often pay attention to when choosing applicants for receiving funds.

Social entrepreneurship is an activity carried out in the following areas:

1. Promoting employment of vulnerable groups of the population.
2. Social tourism organizations.
3. Providing educational services.
4. Providing assistance to victims of natural disasters or disasters.
5. Involving citizens who suffer from drug addiction, alcoholism or who have served prison terms in social activities.

It should be noted that the state seeks to support the ideas of entrepreneurs who have a social orientation.

Amount of grants in 2019

The maximum amount of assistance to entrepreneurs in the form of grants in most regions of the Russian Federation is 300,000 rubles (except for Moscow and some other cities).

This does not mean at all that an individual entrepreneur, having developed a business plan worth 300,000 rubles, can count on receiving a grant. The fact is that one of the requirements for applicants for a grant is the availability of their own funds, which will be used in the implementation of the intended project.

An entrepreneur wishing to receive a grant for business development must have documentary evidence that he has the ability to invest at least 15% of his own funds in the project based on a business plan. This requirement applies to an application for participation in a grant competition.

How are applications decided?

Supporting documents along with applications can be submitted electronically. To do this, you can use specialized sites.

Once an application is received from an individual entrepreneur, three working days are allotted for its consideration. If during this time it is established that all the individual entrepreneur’s documents comply with the requirements and conditions of the program, then at a meeting of the specialized commission this application will be considered. The commission has three months to make a decision.

Each application is assessed by a point system that is used in the region of the Russian Federation. The information received becomes the basis for compiling an overall rating of applications.

After developing the overall rating, the commission members, based on the results of a general vote, select the most suitable applicants from among the entrepreneurs who applied. It is these individual entrepreneurs who will be provided with grants for the development of small businesses. The results of the competition are published on the official website of the regional fund.

Within a month after publication, an agreement is signed between the individual entrepreneur and the regional fund, which describes in great detail the conditions for receiving a grant for the development of small businesses, based on the documents provided by the individual entrepreneur.

After familiarizing yourself with the procedure for receiving a grant, an individual entrepreneur may have doubts about the success of his own project. In this case, you can use the funds received to implement the project of another entrepreneur, or buy an existing business.

Use of funds

After the end of the project implementation period (grant period), the grant recipient must report to the founder on the use of funds.
The report should consist of two parts:

1. Contentful.
2. Financial.

If the grant recipient does not report within the deadline established by the agreement, he will be blacklisted.

Data on misuse of funds by the grant recipient is sent by the Grant Department to the tax service.

How to get a grant for small business development: results

In order to receive a grant, an individual entrepreneur should:

1. Find a fund in your region that provides support to small businesses.
2. Draw up a very detailed business plan for a small business development project and attach documents to it for participation in the competition. After this, all submitted projects will be subject to independent examination. Project evaluation criteria are as follows: economic feasibility; prospects for market sales of products; technical novelty and more.
3. Complete training to participate in the program (in the form of courses and seminars).
4. Have no debt to budgets of all levels.
5. Keep in mind that the grant may not be issued in full, but in parts (tranches). Thus, the initial amount can be issued for the implementation of the first stage of the project based on the business plan. After providing a detailed report on the use of funds at the first stage, you can count on the next tranche.

In conclusion, we would like to add that most often the winners of grant competitions are projects for the development of small businesses in the field of creating consumer goods and services. That is why, before applying for a grant, it is worth carefully considering the potential sales market.

Entrepreneurship is a rather complex and labor-intensive way of making money. A person who runs a business has to solve problems of various kinds. They may be related to issues of a technical, everyday, social and financial nature.

It is a well-known fact that private business requires investment, especially at the formation stage. One of the tasks of a person who is engaged in entrepreneurial activity is searching and attracting financing for your business.

Potential recipient

People who are currently unemployed can count on receiving a grant. Moreover, this status must be officially confirmed, that is, the person must be registered with the employment center.

What is the difference between a grant and a subsidy?

A grant differs from a subsidy in that they have different sizes and are given out by different structures. Typically, the subsidy goes to the entrepreneur entirely, and the grant - in several stages or, in other words, in tranches. If the funding comes from a fund, then the entrepreneur will need to submit reports on what purposes the money was spent on.

The organization that finances the entrepreneur can itself purchase the necessary goods. The grant can be issued several times if the company that received it is well established and has positive development indicators. If the use of funds does not bring any results, then, most likely, the next financing will be denied.

Grants can be provided by the government or private organizations. The funding focus of public and private foundations differs.

Government funding

The state is aimed at social support of the population, so grants are received by:

1. Unemployed citizens whose status has been confirmed at the labor exchange.
2. Young people who have graduated from a higher educational institution.
3. People who have .
4. Military personnel with retiree status.

There are certain areas that are developing in a particular region. For example, in one region agriculture is developing, while in another the priority area will be business related to supporting new technologies. It will be easier for those organizations whose activities are related to the priority areas of the region to receive a grant.

Another factor that influences the choice is long-term project. The state is interested in the company developing and paying taxes. Therefore, to receive a grant, it is necessary to prepare a calculation that will show that this project will be successful and in a couple of years will return the funds invested in it in taxes.

Also, a positive aspect for receiving a grant in 2018 will be the provision of jobs to unemployed segments of the population. It would be welcome if their quantity is at least five.

gratuitous help

Free assistance is provided private foundations. They can be domestic or foreign. The scope of their funding extends to companies and organizations whose activities are related to culture, economics and ecology. Projects related to scientific research and the development of any innovations also attract the attention of such funds.

As a rule, these funds give preference to already proven organizations that have experience in effectively using funds.

Before submitting an application for a grant to a private foundation, it is recommended to prepare, namely, to clarify which companies have already been funded, whether these entrepreneurs have received grants previously, and if so, in what quantity.

If possible, arrange a meeting with the grant winners. Ask them about the features of the project, what to emphasize, in what form to make the presentation and other points that can have a positive impact on receiving funds.

There are general requirements for grants, but private foundations can set their own conditions. For example, when issuing a grant for the implementation of a project related to agriculture, there may be restrictions on the area of ​​land use.

From banks

In addition to funds, banks issue grants; they determine the conditions for receiving them and the amount. As a rule, banks compensate part of the money spent from the implementation of a project for the customer. The bank may also stipulate which regions can participate in the competition, the number of company employees, income and other requirements.

As a rule, if an entrepreneur meets the bank’s requirements, he submits an application, and if it is approved, he carries out actions aimed at implementing the customer’s project. Next, you need to provide reporting on the funds spent and receive compensation for the completed project.

Exceptions and deadlines

State grants are received by novice specialists or socially disadvantaged sections of society. Private foundations focus on science and new technologies. However, there are exceptions.

Grant application deadlines vary depending on the fund and nomination. As a rule, the deadlines are indicated along with a list of necessary conditions for receiving a grant. There are cases when they can be extended.

The main deadline limit for 2018 is end of July. But there are also grants that you should apply for. until February or Martha.

There are certain deadlines for reviewing applications; they are two months. But there are cases when an application can be considered for about a year.

Possible compensation

Entrepreneurs should know that the funds allocated by the fund must be spent for their intended purpose. It will not be possible to purchase items that can be used for personal purposes, such as a car or interior items.

The money can be spent on purchasing equipment that will be used in production. The purchase of raw materials or supplies is also welcome. Long-term rental of real estate can be included. State grants do not pay compensation for the wages of people who work in this company, and foreign investment funds consider these expenses acceptable.

If an entrepreneur is ready to participate in co-financing his project, then this will be a plus for making a positive decision on issuing a grant in his direction. The more an entrepreneur is willing to contribute to a project, the higher his chance of receiving a grant. The amount of project co-financing varies from 15 to 50%.

Conditions for receiving

In addition to the standard requirements that a candidate for a grant must meet, foundations may put forward additional conditions. Mandatory conditions include following criteria:

1. Completion of courses in the basics of entrepreneurship by the candidate.
2. Providing jobs for people who are not employed. This condition may be mandatory when receiving a government grant.
3. Documented evidence that you have not previously received any financial assistance.
4. A certain annual turnover of the company.
5. Provide reports on the absence of any debts to the tax authorities.
6. Requirements related to age, education received and work experience in a certain field must be met.
7. The business must be registered in a certain region. As mentioned above, there are differences between regions in the allocation of funds in one area or another.

In addition to production and business projects, funds can be allocated for the implementation of political projects whose activities are aimed at improving the quality of life of the population.

1. Educational projects aimed at working with schoolchildren and students.
2. Cultural and educational activities.
3. Rehabilitation of drug addicts and alcoholics in society after treatment.
4. Activities related to employing the unemployed population.
5. Helping people who have suffered from any natural disasters or military actions.

Required documents for application

There is a basic list of documents that are needed to apply for a grant. Each fund may also put forward additional requirements.

1. Business project.
2. Passport of the entrepreneur who will appear as the applicant.
3. Completed application for participation.
4. A special letter that should reflect the strengths of the project, namely its uniqueness, relevance and necessity.

The application must contain information about the company’s existing problem and a description of how to solve it. The financial part must also be spelled out, namely, where the funds are planned to be spent, possible risks and ways to resolve them are described. The application form is determined by the fund.

Sample business plan

Exists standard business plan sample, which is suitable for a grant.

Errors when preparing an application

Exists several errors, due to which the entrepreneur may not receive a grant.

1. If you specify the maximum possible amount of financing for the project.
2. There are few jobs that the entrepreneur plans to provide.
3. There is no need to indicate that the company needs a car.
4. It is imperative to indicate the exact expenditure of funds in the business project.
5. It is necessary to provide information about the company's suppliers and partners.
6. A business project must be voluminous.
7. You should indicate how much taxes will be paid.
8. The project must contain information about the competitiveness of the product or service.
9. It is mandatory to provide information about the effectiveness of the project.
10. The design of a business project must be at a high level.

You should comply with reporting requirements, as well as be interested in the most effective ways to use funds in the fund, you need to be in touch with it. If an entrepreneur “makes friends” with the fund, he will have the opportunity to receive other material support.

You can find out how to get money from the state for the development of individual entrepreneurs in this video.