If you’ve spoken with anyone about grants in the United States recently, chances are that the uncertainty surrounding federal grants took up much of your conversation.
Given the Trump administration’s penchant for funding cuts, it’s hard to ignore. Yet, while the cuts raise valid concerns about available funding, not all federal grant programs are disappearing. Cuts are primarily targeting DEI, climate, and so-called “woke” programs. Others are getting off scot-free.
For example, the U.S. Forest Service recently began assessing applications for its Wood Innovations grant after pausing for an administrative review. We can at least now count on one funding program to operate in Washington, D.C., and it is good for us because it supports forest products.
Locating Your Funding Options
Of course, plenty of funding opportunities exist outside of the nation’s capital. You only need to know where and what to look for. Great places to start are your state’s government agency pages; go to simpler.grants.gov or do a basic Google search. You can also try databases like Instrumentl.com (non-profit opportunities) or GrantWatch.com (both are paid services).
At the federal level, you’ll most likely find grants supporting pallet manufacturers from the U.S. Department of Agriculture and the U.S. Forest Service. At the state level, you can find information on central grant databases or agency websites if your state doesn’t have a comprehensive database. Research economic development incentives and agricultural grants, too—if you’re a primary wood processor (i.e., you process sawlogs), you qualify as an agribusiness.
Private funding sources are less applicable because many only award grants to nonprofits. However, valuable opportunities exist, such as those from the U.S. Endowment for Forestry and Communities. Depending on your project, you might even secure an exemption to funders’ eligibility rules. For instance, a biochar project might interest funders because it sequesters carbon. Or you might score a training grant from the Occupational Health and Safety Administration. Check out those opportunities at https://www.osha.gov/harwoodgrants.
Also, don’t underestimate your networks. I recently discovered a $200,000 grant for Kentucky manufacturers while attending an economic development conference. Grant programs are not always advertised well, so asking those in the know can be helpful.
Broaden Your Definition of “Grants”
Because fewer grants are available to businesses than non-profits, it’s helpful to look beyond traditional grants for funding. For example, tax credits are essentially grants you receive during tax season. Tax liability reductions act much like grants, too; only instead of getting money, you get to keep it. Technical assistance programs are another form of grant in which awardees receive free expert services.
Many of these programs involve an application process like grants do. Take tax credit programs. These sometimes require interested parties to apply for the credit before they can receive it. You cannot simply fill out a form when preparing your annual tax return.
Searching for Funds
Once you’ve identified a project, look for grants using the MAIN method: Macro, Activities, Impacts, and Network. Begin by considering your project with a wide lens—the Macro view. You probably won’t find grants specifically for pallet manufacturers. Instead, look for grants that apply to forest product manufacturers or manufacturers in general. Look for vanilla business grants. Some grant programs cast a wide net, so you can miss opportunities only using overly narrow search terms.
Next, consider your Activities. Are you building a new facility, expanding or hiring new workers? Think about the specifics of your upcoming projects and activities, and then search for relative grants. For example, say you plan to add a new manufacturing line requiring extensive retraining. You can look for “capital project,” “retraining,” or “workforce development” grants.
After activities, evaluate the potential project Impacts. Impacts are crucial because funders provide grants to make a positive difference; they care about outcomes. By identifying which outcomes your project endows, you can potentially find more funding. So consider: Does your project benefit the environment or solve a waste problem? Does it create jobs in a high-unemployment area? Look for grants that support the positives associated with your project.
Last, lean into your Network. You can increase the number of grants you qualify for by partnering with other organizations, such as your local economic development organization. Through them, you may receive money typically available only to non-profits. Networks can involve collaborations, too. Maybe you can work with a non-profit organization that is a customer to boost its pallet purchases or improve pallet quality standards to reduce solid waste.
Examples of Relevant Grants
Among federal grant opportunities available to pallet manufacturers, the U.S. Forest Service offers some of the best:
- The Wood Innovations Program supports traditional forest product manufacturers and feasibility studies for innovative projects.
- The Community Wood Program supports emerging technologies and markets in the forest-product space, along with wood energy and heat projects.
- The Wood Products Infrastructure Assistance Program offers similar benefits but restricts where you source feedstock and locate the project.
What’s available in state funding depends on your state’s politics. Kentucky, for example, provides numerous grants and tax incentives for new companies, whereas other states do not. The Kentucky Reinvestment Act (KRA) provides tax credits for companies investing in specific technologies, which is excellent for existing manufacturers. As with grants, KRA credits draw from a designated funding pool and require an application process.
As a for-profit business, you are unlikely to find much funding outside of federal and state sources, but there are exceptions. The Equipment Catalyst Match (also in Kentucky) offers up to $200,000 for manufacturers investing in the state. The U.S. Endowment annually issues grants and recently closed its first impact investment funding round.
Writing Effective Grant Applications
When writing a grant application, remember what your teachers taught you in grade school: Read the instructions completely. Most application mistakes stem from applicants failing to provide the required information or documents as spelled out in the Notice of Funding Opportunity, Request for Applications, or Funding Opportunity Announcement. (Organizations use numerous terms for the document that announces a grant and outlines funders’ goals, objectives, and requirements.)
Having a second pair of eyes review your application before submitting it is also a good idea. Consider paying a professional to edit your application, or at least have a coworker with strong writing skills read it over. You’ll be amazed at how input can make your writing better.
After You’ve Won
Once you secure an award, the post-award phase typically begins with negotiations, especially with state or federal funding agencies. Usually, you will receive the amount you requested, but agencies may negotiate lower awards if they wish to fund more projects than they initially planned. They might also adjust your budget. We’ve seen federal grants request detailed project costs in applications only to dramatically reduce the actual project budget during negotiations to simplify oversight.
You must also submit project reports after winning a grant—usually on an annual basis but sometimes quarterly. Reporting can prove quite complex for federal awards. (See 2 CFR 200 for the requirements.) A piece of advice: Anticipate having to conduct a single audit, which is automatically required for entities receiving $1M+ in federal funds during a single fiscal year.
Track Everything
While there are no guarantees that funding exists for your specific project, it is worth looking into. Grants can open significant funding opportunities for your pallet business, boosting project ROI or creating sales opportunities. While time-consuming, the effort can yield valuable resources to grow or enhance your operations.
Editor’s Note: Joel E. Dulin is president and CEO of Jozana Grant Services, which specializes in grants to forest-product manufacturers. Learn more at www.jozanagrants.com.
