What are grants for small businesses? Who issues the grants? These include

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 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 before, 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. You can include long-term rental of real estate. 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 completing 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. You should not 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.

To implement any business idea, you need a certain amount of start-up capital. If you don't have the money to open your own business, don't give up on your dream. The easiest way out of this situation is to seek help from the state. You will learn how to get grants for starting a small business for aspiring entrepreneurs in 2019 from this article.

Who receives grants?

Almost every entrepreneur dreams of receiving a grant to start a business. However, only unemployed citizens who are registered with the employment center, or entrepreneurs who want to expand their existing business, can apply for a cash subsidy.

When issuing grants for starting a business in 2019, foreign sponsors insist that the allocated funds be spent in full accordance with the business plan. The state pays more attention to social protection of the population and employment of citizens. In this regard, foreign investors usually finance enterprises that have already participated in similar programs, and government funds more often issue business start-up grants to aspiring entrepreneurs. At the same time, they give preference to socially vulnerable segments of the population:

• University graduates;
• Citizens who have been laid off;
• Single moms;
• Disabled people, etc.

According to the law, a grant for opening a small business in 2019 can be received by citizens over 18 years of age who want to engage in entrepreneurial activity in our country.

Application deadlines

Now let’s try to figure out where to get a grant to start a business. First of all, visit the district small business development center. There they will tell you where to go and what documents you need to collect. In addition, information about holding competitions for government grants to start a business can be found in regional print media or on the Internet. Application deadlines and requirements for competition participants can also be obtained from the Ministry of Economic Development and local administration.

If you try hard, you can find a fund that will finance the most extravagant project. And yet, to be guaranteed to receive a grant, you need to look for more. Experts recommend that beginners focus on the service sector.

You can open:

• Training courses;
• Auto repair shop;
• Cleaning company;
• Design studio;
• Marketing agency.

If you don't know, you can rent out commercial and residential properties. But in this case, one cannot count on state support.

Requirements for applicants

Each foundation that issues grants has certain requirements for competition participants. As a rule, these requests are similar, so there are a number of general requirements that applicants for receiving financial assistance must fulfill:

• Filing an application;
• Project development;
• Project protection;
• Project implementation;
• A full report on the funds spent.

There are also many small nuances that should not be overlooked. It often happens that a person presents a brilliant project, but cannot figure out the intended use of funds, and is rejected. At first glance, it may seem that spending money is easy, but if it is someone else's money received for the implementation of a specific project, everything is much more complicated.

Therefore, before submitting an application, carefully study all the reporting rules - deadlines, report form and procedure for providing information. In this case, you can easily account for every penny spent.

The easiest way is to get a grant for renting or purchasing premises, as well as purchasing equipment, raw materials and materials. In addition, it should be taken into account that almost all government programs for financing small businesses are aimed at combating unemployment, so the commission gives preference to entrepreneurs who create new jobs.

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How are applications decided?

The most important question that many aspiring entrepreneurs are looking for an answer to is how to win a grant to start a business?

The commission that makes decisions on applications carefully checks all documents, and in particular the business plan. It must contain all the necessary financial and economic indicators and their detailed justification. Describe in detail. In this case, the commission members will get a clear idea of ​​the prospects for the development of your business and the effectiveness of the project.

An entrepreneur who does not provide such calculations will most likely be refused. In addition, the business plan must clearly indicate where the money received will be spent. You need to calculate everything in such a way that the commission members are convinced that these funds are not your main funds. The state does not support newcomers who want to open their own business solely through gratuitous subsidies. It is advisable that the amount of your personal starting capital is approximately twice the size of the subsidy.

Another important point is the creation of jobs. The more people you can employ in your enterprise, the better, since every project that is subject to government funding must be aimed at combating unemployment. But at the same time, the number of jobs should not have a negative impact on the profitability of the project.

Instructions

First, find a foundation in your region or city that supports small entrepreneurship. They provide grants not registration business, obtaining the necessary licenses and certificates, renting premises, purchasing raw materials and starting production. As a rule, entrepreneurs engaged in financial activities, real estate transactions, rental of cars, equipment, production and sale of alcohol and tobacco, as well as gambling are not allowed to participate in such programs.

Next, draw up a detailed business plan for the development of your small business. Attach to it the documents required to participate in the competition. All submitted projects are subject to independent examination. The criteria by which they are evaluated are economic feasibility, scientific and technical novelty, and prospects for market sales of products.

To participate in the program, complete the training. Usually these are courses that are created by the foundation and take place in the form of seminars. A prerequisite for participation in such programs is the absence of debt to the budget of all levels, including tax obligations. The size of the grant may be different, as a rule, they do not exceed 300 thousand rubles and cannot be more than 70% of the amount required, according to the business plan, for development business.

Please note that the grand may not be issued in its entirety, but, that is, in parts. First, you will receive a certain amount for the first stage of your project. Only after a detailed report on its use can you count on the next tranche. And remember that most often money is allocated for development small business in agriculture, services and the creation of consumer goods. The main thing is that you need to carefully study the potential sales market, and even better, a decent customer base has already been formed.

Get state support in the form of a subsidy for the development of small businesses is possible in almost every region of the Russian Federation. The maximum amount of the allocated amount depends and the requirements for applicants depend on the specific subject of the Federation. Usually it is provided to enterprises and entrepreneurs whose state registration has passed no more than 1 or 2 years.

You will need

• - documents on state registration of an enterprise or individual entrepreneur;
• - confirmation of its compliance with the requirements for applicants for state support;
• - business plan.

Instructions

All conditions for the provision of state support must be found in your regional agency for business development. This information can be presented on its website or the website of the local (department) of economic development. The maximum subsidy amount in different regions ranges from 250 thousand to 400 thousand rubles.
Among the requirements for applicants there may be restrictions on the types of activities, the purposes for which the money will be spent (for example, for the purchase of fixed assets), whether the entrepreneur has previously been registered with the employment center, the completion of a course in the basics of entrepreneurship, the availability of own funds for financing, etc.

You should consult with them on writing a plan (it will be the basis for deciding whether to allocate state support, and the main criterion for the intended use of the funds received by you).
If possible, purchase a manual on how to create this document. Show the draft version to the agency consultant and listen carefully to the comments. Finalize the business plan and show it to agency employees until it is finally approved by them.
Submit the finished package to or directly to the economic development department or department, depending on the procedure adopted in your region.

The procedure for reviewing business plans also differs depending on the region. In some cases, it is enough to submit the document itself for analysis to the economic development department. In others, you will have to defend your project before the commission: give a presentation, demonstrate product samples if available, answer questions.

After a positive decision and receipt of money, do not forget that after a year you will have to account for every penny of the allocated funds. So you should not spend them on goals not specified in the business plan.

There are different types of government subsidies. One of the most popular grants during the crisis was a subsidy for starting your own business. Indeed, no matter how strange it may seem, during the years of economic recession the number of registered individual entrepreneurs increased by 40%. Perhaps this trend is based, among other things, on the fact that people began to use government support.

You will need

• unemployed status, application for a subsidy and business plan, passport, TIN, pension insurance certificate, work book, certificate from the last place of work about salary for 3 months, document on education. Before submitting documents, check the list at your local Employment Center - different regions may have their own nuances.

Instructions

First of all, think about what you want to do. Analyze how much demand the proposed business will have on the market, what the costs will be, how soon the investment will pay off and the business will begin to make a profit.

Write a business plan. You can do this yourself. If you haven’t had to draw up business plans before, look at how it’s done - there is now a lot of literature on this topic and examples on the Internet. Another option is to seek help from a company that specializes in this.

Provide copies of these documents to your local Job Center.

note

A government subsidy for starting your own business is a non-repayable loan; it does not need to be repaid.

Helpful advice

If you employ another unemployed person in your individual entrepreneur or LLC, the amount of the subsidy may be increased.

In recent years, the world economy has been very unstable. Under these conditions, it becomes very difficult for small and medium-sized businesses to survive in the market without support. It is even more difficult to start this business. But now everything has become easier, because the state is ready to help start-up entrepreneurs with subsidies. So how do you get grant on development business from the state and who can apply for it?

Instructions

An aspiring entrepreneur today receives a subsidy of 58,800 rubles for opening business. To do this, you need to register with the employment service at your place of residence and receive a document confirming your unemployed status. According to the law, this status is assigned to a person who has registered with the employment service and has not received a single job offer within ten days. After this, the unemployed person can receive benefits, but there is also the opportunity to receive an offer to open his own business and receiving grant A.

After you have been assigned the status of unemployed, you will need to pass a psychological test for aptitude for. This is a very important stage, and as a result, very often a decision is made to reject the unemployed person’s request for a subsidy, so answer the questions as honestly and thoughtfully as possible. The employment service will also test your knowledge in the field of maintaining business, and if there is enough knowledge, then you can move on to writing a business plan. If knowledge is not enough, then you will be offered training at one of the educational institutions in the specialty "". This training will take from two weeks to a month.

After completing the training, you will need to move on to direct work on the business plan of your future company. The Employment Service will provide you with a business plan and tell you about the main details of its preparation. After this, you will need to defend it before a commission consisting of representatives of the mayor’s office and the employment service. If you adequately defend your business plan and can prove its viability and social significance, then, undoubtedly, you will be able to receive a subsidy for development business.

After receiving approval from the commission, you will proceed directly to the preparation of the necessary documents. The employment service will help you collect all the documents, help you complete them, and be sure to tell you about further actions. You will need to register as an individual entrepreneur, or open a legal entity, make seals and stamps. The state assumes the obligation to pay the state fee for opening a legal entity, but only through the method of compensation. That is, this money will be returned to you immediately after submitting invoices and receipts for payment of state duties and invoices for the production of stamps.

note

Within three months it will be necessary to report on the money spent to the commission. Keep all documents confirming that actual costs correspond to planned costs.

Helpful advice

You can double the grant size if you hire a person who also has unemployed status. A hired employee is entitled to a lump sum payment of 58,800.

Sources:

• what documents are needed for the scholarship?

Not many people know that in Russian legislation there is a decree according to which an unemployed person can receive an amount equal to the annual amount of the maximum unemployment benefit to start his own business. It is about 60 thousand rubles.

You will need

• -passport,
• -education document,
• - certificate of assignment of TIN,
• - pension insurance certificate,
• - business plan of the project

Instructions

To receive the required benefits, you must first register with the employment center as an unemployed person. Each district and city has its own territorial department of this institution. At the same time, full-time students cannot be classified as unemployed. But correspondence students can register with confidence.

Then you should consider whether you can handle it. Perhaps other options for government assistance, such as advanced training or professional retraining, are more suitable for some. Or, together with the employment service, you can try to find a job in another region. This way you will receive compensation for travel and rent for the first 3 months of work.

If you decide that your own business is what you need, feel free to write an application for financial assistance. But at the same time, you need to draw up a business plan. You shouldn't be afraid. This is not a multi-volume document at all, but just a form that takes up several printed sheets.

The next stage is the defense of the compiled business plan. This procedure is similar to an exam. Before him, the future entrepreneur is sent to him so that he can characterize his personality and evaluate his ability to run his own business. Then the business plan is defended, which is attended by representatives of the employment center, city hall, and local entrepreneurs. They are the adequacy and realism of the project.

Once the project is approved, all that remains is to register your business. In this case, you will have to shell out your own money for registration. This is about 2 thousand rubles if you plan to become an individual entrepreneur, and about 10 thousand if you want to open a limited liability company. A subsidy from the state can be spent on purchasing raw materials, tools, supplies, equipment, as well as renting premises, but for no more than 3 months.

Now you can get to work. It should be remembered that reporting to the tax office in the first year will need to be submitted to the employment center. During this period, you are not required to make a profit, the main thing is to show that you are working. If your activity lasts less than a year, the subsidy will have to be returned. By the way, you need to report for budget money within 2 months from the date of receipt.

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Many people who want to open their own business cannot do so due to lack of funds. In this case, you can take advantage of the help of the state, which since 2009 has been actively supporting the development of small businesses. Obtaining a subsidy from the state is quite simple, you just need to know what is required.

You will need

• -passport;
• -employment history;
• - insurance certificate of pension insurance;
• -education document;
• -certificate 2-NDFL from the last place of work;
• -a bank account opened in your name.

Instructions

Register with Population Services. The state can only provide subsidies to officially citizens. To do this, you must reach the age of eighteen and have a work book with a record and seal about it, and the reason for dismissal and the time that has passed since its moment are absolutely not important. The latter will only affect the amount of the monthly benefit that you will receive after registering with the employment center (CNC). If you have not worked anywhere before and do not have a work book, then you also have the right to participate in the state program for obtaining a business license.
To register, you will need to provide a package of documents to the Central Scientific Research Center.

Notify the employment service that you want to take part in the state program to receive a subsidy. No one has the right to refuse you, except if you have already received financial support from the state to open your business.

Decide on the type of activity you want to do. Please note that each region has its own restrictions and the government does not fund all activities. It is especially easy to get a business related to livestock farming, poultry farming, crop production and the provision of various household services.

Make a business plan. It consists of 6 sections:

• information data;


• essence of the project;


• production and sales plan;


• justification of the project cost;


• calculation of the cost of products/services, sales prices;


• justification of the viability of the project.

Business plan forms will be given to you at the Central Scientific Research Center.

Submit your business plan to the employment service, having first made a copy of it. This is necessary so that you can refresh your memory before defending the project after its approval. Project approval time is up to 2 weeks.

Protect the project. The defense takes place at the employment center before the commission in the form of a conversation, during which you will simply need to answer a number of questions regarding your future entrepreneurial activity. After your defense, you will need to wait for the commission’s decision, which is made within a few days.

If the decision is positive, come to the employment center and sign an agreement on the provision of a subsidy. Then go to the tax office and register your activities, preferably as an individual entrepreneur (individual entrepreneur). It will be faster, cheaper, and easier. Your documents will be ready within 5 days.

Provide your business registration documents to the employment center. Within a few days the money will be credited to your account.

Finally, within 3 months of receiving the grant, report on how you used the money. To do this, take all sales and cash receipts, purchasing acts, etc. and bring them to the employment center.

Nowadays, any entrepreneur dreams of receiving a grand development small business. After all, unlike a loan, it will not need to be repaid. The only problem is that such funding is provided only for certain areas of activity.

Would you like to receive a grant for business development? This is a pressing question today. Small businesses are developing at an active pace, and the state is helping them in this. Gives money to develop his business. This grant helps you develop your business. You will be able to receive money free of charge, which is extremely important for a new entrepreneur. Is it really a tempting offer? But such proposals have a huge number of nuances, strict adherence to which will help you get money for the development of your business.

First step

The first step for those who want to open their own business is to find an entrepreneurship support fund, which deals with such things as business grants.

You should find out all the details about what documents you need to provide to receive money. Such communities do not help all entrepreneurs. If your business is related to financial activities or car rental, they will not give you money to develop your business. Again, there are many features here, and even with a business like this, you will be able to get the necessary funds. The main thing is to correctly convince and show that your business plays an important role in people’s lives. This is what you bet on when you receive the first money to develop your business.

Preparation

Before drawing up a business plan, it is advisable to undergo training by attending courses on entrepreneurship in order to better understand business development. And how best to develop your business so that it brings not only benefits to people, but also profit to you. The last two factors are closely interrelated. You not only work to earn money, but also help people solve one or another problem.

The question may arise about where to look for such funds. The answer will be the administration of your city, where you can find out where to find a fund to support entrepreneurship. Do you have the mindset to constantly work with similar organizations? You should begin to actively cooperate with the administration of your city or the territory in which you will conduct your business.

The most important thing in such a situation is for a novice entrepreneur to understand the fact that they don’t give money to anyone just like that, for free. Only for the most necessary things to improve people's lives. Even if an entrepreneur thinks that he is doing good for others, the commission that decides whether to give money for the development of the business may not give you this opportunity.

Business plan

The first thing you need to do to go through the grant procedure is to write a business plan. Here you will need the help of those who know how to create such documents. This stage is extremely important for you. Properly filled out documents will increase your chance of getting money for your first business. You understand that even minor mistakes can cross out your path to receiving funds and quick promotion. This means that you should find a competent person who can correctly fill out the relevant documents. Yes, the amount you can receive is small, only up to 300 thousand rubles. It may be more, depending on certain conditions, but it will be quite enough to give impetus to the development of your business. It is extremely important to collect all the necessary papers and convince the commission, which will review all the documentation, of the novelty and economic benefits of your future project. A grant is, first of all, helping people.

FAQ

At the stage of drawing up a business plan, you should ask the right people as many questions as possible in order to understand all the nuances in detail. You should not be ashamed of your ignorance. If you doubt something, it is better to ask. And it is important to receive a detailed answer to all your private questions, so as not to stop in the future in the development of your entrepreneurial activity.

Who do they give it to?

A grant is something that can be obtained from both the state and investors. These two categories have opposing views on issuing money for business development. If the state focuses on social protection or employment, then investors have their own thoughts on this matter. They may or may not allocate money to your business. It is better to go to government agencies. There you can also get help in the form of renting premises, which is sometimes more important for an entrepreneur than just getting money.

The commission will be based on your income level and your capabilities. If you are a student who wants to start his own business, you have zeal, desire and a well-thought-out business plan, the implementation of which can benefit the people around you, then there is a high chance of getting money. Or you were laid off, but you have a large family to feed. And you have a good idea that can bring something important to people. For example, bake bread and rolls. It’s another matter if you have money for your business, but it’s not enough and you decide to participate in a competition to receive a grant for further business development. In this case, the commission will take another look at your business plan.

What are they giving for?

Most entrepreneurs receive money to develop services. And this is not at all surprising. Serving the population in various areas of services is the most important component of life. For example, the same hairdressing salons undoubtedly play an important role in serving the population.

Now the meaning of the word "grant" is clear. This is what helps people and makes you money. If you bring something useful to the masses, no matter what kind of service or product it is, you will receive material support that will help you in the future.

Getting money for business

Please note that after your project is approved by the commission, money may be issued in installments. And after each such issue, you must provide a report on the funds spent. If you have a base of regular customers, then there will be no problems with spending money. And you can get grants for business.

This method of issuing money is highly effective. Firstly, you will not spend money on unnecessary things and services that you think will help you develop. You should think about everything 10 times before buying certain things. You will spend the first part of the money by investing it in development. Some time will pass, you will see the results of what you spent the funds on. The second part of the financial assistance will come. In the first stage, you will already see many weak points that should be strengthened in your business. And the second batch of funds will help you a lot with this.

What's next?

And then everything is simple, you need to develop your business. Strive to improve it every day. Look for the weak and strong points of your business. Develop the first, improve the second even more. You need to move forward and take into account today’s time, certain factors, they will help you see what is important for the development of your business.

It is clear what the meaning of the word "grant" is. And its advantage is that you get it for free (free of charge) so that you can start your own business, receive money and bring benefits to people. And if you can convince the commission of this, and it considers that you have the right to receive a certain amount, then you are on the right path.

In the future, you have the opportunity to receive several more grants to develop your business. The more money you have, the faster you can benefit people and provide for yourself.

You can search for information about how the government is going to help businessmen—beginners and not-so-beginners—on the Internet. The full texts of business support programs for the current and subsequent years are published on the portals of regional authorities. The main aspects of support are spelled out there: when and under what conditions you can get advice, when - benefits when completing paperwork, and when - a free subsidy or grant.

But it is better to use local information. It’s one thing what the region says, and quite another thing what exactly your city or region is capable of. The province may not have enough money to implement any program. For this reason, you need to visit the website of the local administration and look for information about the ongoing activities of the business programs that interest you. In addition, the authorities are required to publish announcements in the media about all stages of the program - the allocation of funds for the current year, the beginning of the competition, deadlines for submitting applications, results.

You can go to the economics department of the city or district administration in person - specialists will provide you with all the necessary data to receive support.

I went exactly this way - I went to the local entrepreneurship development department and in half an hour they told and showed me everything. I learned that in our area, budding entrepreneurs can get money - just like that! Not on credit! And it immediately caught fire - I have to take it!

What did I do? I ran to register an individual entrepreneur, open a bank account and wait for free money.

What should I have done? It was necessary to find out about those federal and regional problems that are being implemented in a particular city. Find information about the features of these programs and the support measures offered. Talk personally not only with representatives of the administration, but also with those who have enjoyed such support before. Don’t rush and weigh everything - nothing is free from the state.

Procedure for providing grants to start-up businesses

Simply coming to the appropriate authorities and declaring your desire to receive budget funds is not enough. You need to take part in a certain action with clearly defined rules.

First, you need to find out the deadlines for submitting an application for the competition, and then prepare the necessary documents for participation in order to submit a complete package of necessary papers for consideration by the commission - from a business plan to registration and statutory documents.

The commission (determined by a separate resolution) evaluates the applications of all participants, assigning points for specific criteria and business parameters. Those who score the required number of points are applicants for support. If this year the program budget does not allow allocating money to all participants, then funds are provided to businessmen who score the most points.

It's simple. The main thing is not to make a mistake at the stage of collecting and processing documents, so that the application is not rejected due to technical shortcomings and non-compliance with the program requirements. One of the main requirements that a candidate for a grant for beginning entrepreneurs must meet is no more than 1 year of business experience. And there is a subsidy program for the development of already experienced business entities that have existed for more than 12 months. There are other requirements. But we need to talk about them separately.

Particular attention should be paid to the terms and conditions of support programs. They may be different in different regions, and each region may have its own nuances. It may be the size of the grant and the method of receiving it.

In most constituent entities of the Russian Federation, the maximum amount of financial support for a start-up business is set at up to 300 thousand rubles. Moreover, they can be issued immediately after the application is approved, or they can request documents stating that the entrepreneur has already invested his funds and is asking for compensation from the budget.

I got a combination of these options. In order to receive a grant, I was obliged to immediately attach payment documents to the application regarding the expenditure of the same amount that I planned to receive from the budget. And after issuing the money, again attach documents stating that you spent this money for its intended purpose. That is, a novice entrepreneur had to pay at least 50% of all project costs in order to receive the second half from the administration.

Drawing up an application and creating a package of documents for a business grant

The application itself for participation in the competitive selection for a grant is easy to fill out - just answer the questions and write down information about the company in a special form. It’s more difficult with the attachments to this application.

What documents will be required to receive an individual entrepreneur grant:

• Certificates of registration and registration with the tax authorities;
• Information letter from statistical authorities;
• Fresh extract from the Unified State Register of Individual Entrepreneurs;
• Certificates from the Pension Fund and extra-budgetary funds about registration and absence of debt;
• A certificate from the tax office confirming that there are no debts to pay taxes and fees and submit reports;
• The tax and financial reporting itself for previous periods;
• Bank account agreement and certificate of no debt to the bank;
• Business plan.

The last item on this list is perhaps the most important. This whole stack of documents, no matter how ideal it is, cannot be compared in importance to a business plan, which describes the entire project and tells what exactly the requested funds will be used for.

In a business plan, it is necessary to carefully calculate upcoming expenses and potential income. At the same time, you need to remember two restrictions: they will not give money for an unprofitable business, and the declared income indicators will be checked, so they should not be overestimated or underestimated, so that the plan coincides with the fact.

My mistake was not in the amount of revenue and expenses, but in the fact that I did not take into account the timing of the receipt of funds. It's simple. I registered as a peasant farmer back in the spring. In May, I already submitted an application for funds, and then waited until September for a commission meeting and selection in the competition. And only a few days before the New Year I received the money. Accordingly, my business plan, written taking into account that the money would arrive on June 1, turned out to be unfulfilled as of January 1 of the following year. All my indicators were six months behind the schedule certified by the administration. There were other difficulties.

In addition to the business plan and payback calculations, the commission evaluates such an indicator as budget efficiency. How beneficial is the implementation of this project to the budget: how many jobs will be created, how many unemployed people will be employed, how many insurance premiums, taxes and fees will be paid?

An additional advantage will be the creation of a socially significant business in a priority area, which is approved in the support program. In some regions this is manufacturing, in others it is processing industry, household services or handicrafts.

Farm of Pyotr Tatarintsev. With it, he began his entrepreneurial activity after receiving a government business support grant.

Features of spending grant funds

In the end, I received the grant, now I had to spend it. An important clarification - the cost plan was drawn up a long time ago and attached to the application and business plan, which were considered by a strict commission. It was necessary to write not only what you planned to purchase, but also indicate specific places of purchase and prices with maximum accuracy. Otherwise, it will be impossible to prove the intended use of funds. As soon as the money is allocated, you need to go to a specific place and buy what is indicated in the plan certified by the administration.

Moreover, with grant funds you can purchase not just anything, but fixed assets and equipment; you cannot pay off current expenses at the expense of the budget and issue, for example, salaries or pay taxes.

Within a certain period of time (about 10-15 days), it was necessary to provide documents about the completed purchase - checks, receipts, invoices, supply agreements for exactly the amount and for those items that were approved.

One check for equipment was not verified by the financial service; I had to look for the seller during the New Year holidays and force him to put the correct stamp on the sales receipt (“soft” copy).

After that I thought – that’s it. I received and spent the money, and even proved that I spent it in accordance with the agreement. It turned out that already in January I had to wait for a commission to inspect the business and what exactly I had done with budget money. The commission's report was disappointing: I am not completing the planned activities on time. Let me remind you that I received the money six months later, but at the same time I had to go according to schedule, as if I had already spent it a long time ago and was working at full capacity. I was given a quarter to correct the shortcomings. And six months later I decided to close the individual entrepreneur, but that’s a completely different story.

Difficulties in obtaining a grant

Budget financing is not an easy thing. If you are lucky and in your region/district/city there is not much competition and struggle for free subsidies, this does not mean that you will pass the competition without any problems and receive the money. Grant funds may not be given to you because you promised to officially employ fewer people than the administration wants, or they were given a salary lower than the industry average.

An important digression: if you decide to take money from the budget, prepare for the fact that the administration will want to return this money back. But not just to take it away, but in the form of legal extortions - taxes and other fees, as well as insurance contributions for employees. Forget about minimizing costs and optimizing taxation - everything must be official, you won’t be able to save money.

Only certain categories of goods can be purchased. You will need to collect a lot of documents. But at the same time, funds from the budget can be allocated on a residual basis and received only at the very end of the year, but no one cancels the obligation to fulfill the approved business plan. We need to get out.

It turned out that I invested 50% of my own funds and waited for financial injections. I opened a current account where funds from the administration were to be received, paid taxes and insurance premiums for six months, and paid bank commissions. All this instead of investing in business. As a result, I spent about as much on these organizational moments as they promised to give me.

The grant amount did not help me get back on my feet, but only depleted my income reserves. I used all the income from the farm not for circulation, but to pay bills from the tax office, extra-budgetary funds, and the bank. This coincided with the period of increasing contributions to the Pension Fund and I had to pay 9 thousand rubles per quarter, even when I had not yet started working.

As a result, I chose a different path - not to try to catch up with my own indicators to the level of the business plan and please the inspectors, but to return the money. According to the terms of the contract, if I worked for three years and showed the declared results, then the money would be transferred to me. If I did not reach the level I set myself, I would receive notifications about the need to bring it into compliance, and then penalties would be issued.

I decided to leave on my own. I returned the money to the budget, submitted documents for liquidation of the individual entrepreneur, closed the account, paid off debts to the Social Insurance Fund, Pension Fund, and Compulsory Medical Insurance Fund. And I continued to work, but now I remained a private household plot and could no longer ask for financial support and use grants, but at the same time I did not have to pay anything to the state.

Now I advise all aspiring businessmen to think a hundred times whether they are ready for such expenses when receiving a free grant as financial support from the state. And I advise, if possible, to work at a comfortable pace and with your own money, and not with funds from the budget.

Article material and photos prepared by: Maria especially for the magazine website