Many clients received new and different types of income during 2020. Even if you did not receive grant income in 2020, it is something you might want to consider in 2021.
Most for profit companies are not familiar with the grant process, but it works much like a loan application (but is usually more streamlined). Grants are most consistently offered through the SBA, or other large regional organizations such as your local chamber of commerce. In West Michigan, most grants have been offered through organizations such as The Right Place, The Grand Rapids Area Chamber of Commerce and the SBA (please note we are not affiliated with any of these organizations).
Please keep in mind the following items relating to grants /grant applications:
- Not every grant will be design for your business. Keep looking for grants with any of the above organizations.
- Grant income will be taxed in nearly every situation.
- Most grants will require financial reports such as profit and loss reports, make sure you have reports ready ahead of the application, because you may only have a short time to apply for grants.
- Even if you have been turned down for a grant in the past, that does not mean you will be turned down next time.
- Most grants will require that you are not already receiving a different type of benefit. For instance, you may not be able to be using PPP loan funds (in the testing period) during the period for which you apply for a grant.
We help many other individuals and businesses with tax reporting, general tax compliance and advice. If you do not feel comfortable taking care of these filings, reach out to us at [email protected].
Anthony Momany, Managing Member, Capstone CPA Group PLLC