Handyman Business Grants: What Contractors Should Know

What Are Handyman Business Grants?

Handyman business grants are money from government, nonprofit, and for-profit organizations handed down to businesses. These funds do not need to be paid back as long as the recipient (the business owner) uses them for the purpose mentioned in the grant application. If not, the business owner must repay the full amount with interest.

Handyman contractors use small business grants to launch their companies or invest in growth initiatives such as adding new service offerings, buying new equipment, hiring more employees, and expanding to new locations.

How Do Small Business Grants Work?

Organizations create grants with a goal in mind, which could be to empower disadvantaged groups or stimulate economic growth. Whatever the case, the awarding organizations lay out strict qualification criteria and documentary requirements.

Such stringent requirements make the process extremely rigorous, with applicants put through three key stages:

• Pre-award phase: At this stage, the grantor lays out the guidelines, launches the grant, and receives applications. Then, a special review committee audits each application to select the winners.

• Award phase: The awarding organization announces the grant awardees and explains the legal ramifications before disbursing the funds to them.

• Post-award phase: A grant manager ensures compliance with the award’s obligations and protocols by visiting unannounced, reading reports submitted by grantees, and analyzing financial reports. Once the grant has elapsed, the grant manager sits with the rest of the awarding organization to ensure the preset goals have been achieved and evaluate grant compliance. 

Types of Business Grant That Handyman Contractors Should Know

Handyman contractors can access four types of business grants as long as they meet the eligibility criteria:

• Corporate grants: Some big corporations have philanthropic arms that offer grants to small businesses as part of their corporate social responsibility (CSR) or social impact investment. They usually have less bureaucracy, are less stringent, and are tailored to the corporation’s CSR policies.

• Federal grants: These are highly competitive financial awards given to handyman contractors by federal agencies using tax dollars. They have stringent application requirements and compliance monitoring. 

• State grants: As the name suggests, they are offered by states. Although the amount is smaller than that of federal grants, state grants are less competitive due to the geographical restrictions attached to them.

• Local grants: Cities and municipalities offer grants to small businesses that contribute to their community's development and financial enrichment.

Now that you know the types of grants available, the next question is…

How Can You Apply for a Small Business Grant for Your Handyman Business?

Applying for small business grants as a handyman contractor entails these four steps:

Let’s go through them in more detail.

1. Check your eligibility

Grants always have eligibility requirements, which all participants must adhere to. At the initial screening phase, the review committee usually disqualifies applicants who don’t meet these requirements.

The basic requirement for government grants is to be a citizen or permanent resident of the awarding area or country or an eligible non-citizen. Additionally, applicants must have a business that could benefit from funding, belong to the demographic stipulated in the grant announcement, and operate within the United States and its territories.

Beyond the basic requirements, grants sometimes have specific eligibility criteria. 

For example, WomensNet offers grants only to women-owned businesses, while the Minority Business Development Agency awards grants to minority-owned businesses. There are even grants for veterans, people living in rural communities, LGBTQ+ individuals, etc.

Before applying for any grant, check the eligibility criteria so you don’t waste time and money on an application you don’t qualify for.

2. Prepare the essential business information

Grantors require business owners to submit detailed and up-to-date financial reports during applications. This is to evaluate the business’s viability and the impact of the grant. Grantors also use financials to analyze previous spending patterns to prevent fraud.

Some typical financial documents required by grantmakers include:

• Financial statements, including income and cash flow statements and balance sheets

• Tax documents

• Payroll

• Equipment inventory

• Projected financial performance for the next five years

• Miscellaneous expenses such as business travel costs, utilities, etc.

Additionally, provide documentation to prove you own the business, including business licenses and trademark registration documents.

Another important document you’ll need is a well-written business plan, which we’ll touch on in the next section.

3. Explain how the grant will benefit your handyman business

Grants attract severe competition from many other handyman businesses in need of funding. So, use your proposal to show the grantor why you need the grant and convince them that you’re the best applicant.

It’s like delivering sales pitches to investors. Except that this time, you’re doing it to get funds you won’t have to pay back or sacrifice control of your company for.

Grant proposals usually contain similar sections to business plans used to source funding for new business startups. However, the details covered and the sequential arrangement of the sections are slightly different.

• Cover letter: Be upfront about the amount you need and draw a connection between the mission of your business and the fund. Mention your business name and other details, and keep it short—stay within four paragraphs.

• Executive summary: Here, you’re to briefly describe the business applying for the grant. What will the grant be used for? How much money will be needed? What is the business’s mission and history?

• Business overview: Introduce the business. Use data points to discuss the employees, your expertise, relevant certifications, and current state.

• Goals and objectives: Reveal the business’s current issues and time-bound goals. Give success metrics and strategy for achieving such goals.

• Budget: Break down all you’ll be using the grant for. The goal is to prove you already have a plan in place to ensure the money is spent on what the business needs, not on some frivolous expenses.

These sections are key to your application. Take time to ensure the details are accurate and are presented convincingly. Better still, hire grant writers with experience penning successful handyman business grant proposals.

Discover handyman slogans you can use to distinguish your company.

4. Submit your application

Now that everything’s in place, the last thing is submission. But before you do that, let your accountants or external auditors review all financial reports and supporting documentation. You wouldn’t want to be caught submitting inaccurate financials or seen as fraudulent.

If the funder is the government, submit your thoroughly reviewed applications to grants.gov. If the grant is from a private individual or large corporation, apply via their website.

The Bottom Line

Grants are a great way to get funds to start or grow a handyman business. You don’t pay them back, the grantor sometimes offers business coaching, and the competition for them isn’t always severe.

Confirm your availability, put together the required documents, and take your time writing a proposal. Additionally, invest in handyman software like ServiceTitan to make your business idea more attractive to grantors and show that your operations are efficient and capable of generating profits.

ServiceTitan is cloud-based software that helps handyman businesses automate their daily operations, deliver quality customer service, and grow their businesses. The world's top handyman contractors use ServiceTitan's tools to succeed.

Disclaimer

The information provided in this article regarding handyman business grants is for general informational purposes only and does not constitute financial or legal advice. 

It does not also guarantee the availability or approval of any specific grant.

Grant programs are competitive, and funding is often limited. And availability, eligibility criteria, and application processes are subject to change and may vary. 

You should conduct your own thorough research and consult with qualified financial and legal professionals before making any decisions related to grant applications or business planning. Verify grant details with official sources.

Frequently Asked Questions (FAQs)

Business grant applications are such a complicated affair. That’s why we’ve anticipated and answered the questions we know you might have.

What are the advantages of small business grants?

The key advantages of small business grants are the following:

• They are non-repayable

• Grantors don’t request a share of profits or control

• Multiple business grants are always available

What are the disadvantages of small business grants?

The key disadvantages of small business grants are the following:

• Applications are time-consuming

• Grantors determine what the money is to be spent on

• Grants usually have strict eligibility requirements

How do grants differ from loans?

Unlike grants, which are free, loans must be repaid within a preset time frame with interest.

Are small business grants taxable?

Grants are considered business income. So, yes, they are taxable.