Applying for a Federal Grant Shouldn't Have to Be So Hard!

By Gary Krupa, CPA

After all, what's a life, anyway? We're born, we live a little while, we die. A spider's life can't help being something of a mess, with all this trapping and eating flies. By helping you (Wilbur), perhaps I was trying to life up my life a trifle. Heaven knows anyone's life can stand a little of that.

- Charlotte's Web, p. 154

For some time I've been aware of a federal grant program that offers incentives to businesses making use of solar and other alternative energy (aka renewable energy) technology. The program is called the (Section) 1603 Program: Payments for Specified Energy Property in Lieu of Tax Credits. It’s proving very popular in the cities, but is less well known in rural areas. I offer to help companies apply for and receive the grant. 

For example, this grant program requires an "accountant's certification" for grant requests of $500,000 or more, a service which I’m well-qualified to provide. A few weeks ago, I contacted a solar energy contractor in Phoenix to help them obtain the grant on behalf of their commercial clients. The company encountered considerable difficulty with the grant process on their clients' behalf.

The process of applying for the grant is somewhat complicated and this business lacked the staffing needed to properly apply for the grant. What should have been a two-month turnaround ended up taking ten months (for a relatively small amount of money) in one case, and over a year in another. A big part of the problem, their Project Manager informed me, was being unable to communicate directly with a Government representative concerning the progress of the grant application. Their cash flow was compromised, and they experienced considerable frustration. Consequently, they vowed not to apply for this grant again.

To better assist them and other potential clients having this kind of problem obtaining the grant, I volunteered to contact the federal agency to learn more about the application process. I called the department responsible for the grant program and spoke with a representative without any difficulty. The representative explained what appeared to her as the reason for the delay this company experienced. Since she couldn't provide confidential information, she gave me an e-mail address that the client could use to contact an appropriate department representative directly and receive a quick response. She informed me that 19,000 grants were awarded for this program within the last two years. When a complete application was submitted, many applicants received their grant within two weeks. 

Based on this information and my prior experience contacting the department, I came to understand that this company's experience with the grant process wasn't typical. I sent the company an e-mail the next day with the information I obtained from the department representative.

This is a story I hope that many will learn from, particularly those who are applying for a Federal grant such as this one or those who had a similar experience.

To successfully receive the grant in a timely way, it’s important to totally understand the application process. The solar energy company's client made a few mistakes in their application. It’s also important to make contact with the right government employee and ask the right questions. I really appreciated the clear, helpful answers I received.

Because I'm accustomed to navigating through detailed processes and government agencies, this isn’t difficult for me. But for a small business, this task can be daunting - especially when you're understaffed - and who isn't these days?

What you can do is be patient, careful, and thorough. If you encounter any roadblocks with the details, call me. The more I learn about this particular federal program, the more I see the potential benefits for alternative energy companies.

However, please be aware that this program expires at the end of this year, so don't delay in applying or encouraging your clients to apply! It's an excellent program for helping to fund renewable energy projects, and the requirements are relatively straightforward.