Grant Frequently Asked Questions

‍Eligibility

Is this for nonprofits only?

‍Yes, eligible applicants need to be a nonprofit, although WSMA has funded Chambers (501c6) and Main Street partners in the past. As long as the organization is providing comprehensive business training, technical assistance and/or access to financing. For-profit businesses, small businesses owners, and LLCs are NOT eligible. Unfortunately, academic institutions are also not eligible for funding at this time..

Could an Economic Development Council (EDC) or Chamber organized as a 501(c)(6) use a community foundation as a pass through to meet the 501(c)(3) requirement? If so, which organization is best eligible to apply?

You can use a 501c3 fiscal sponsor, but a 501c6 can also apply and would not need a fiscal sponsor.

Is our organization eligible if we are embedded in a Chamber of Commerce?

‍Yes, only if the Chamber is a nonprofit (501c3 or 501c6) and provides business training, technical assistance and/or access to financing for entrepreneurs.

Are you able to fund a nonprofit arm of a university (Ex: A foundation) for community programs specifically serving underserved businesses?

‍If the applicant is a 501c3 and registered in the State of WA, it will be eligible to apply for WSMA funding.

What if our organization doesn't have its federal 501(c)3 designation yet?

‍If you do not currently have a 501c3 filed with the IRS, you must have a fiscal agency with a 501c3 to serve as your fiscal sponsor with documentation defining the relationship. As noted in Section 2, WSMA will only fund organizations with a fiscal sponsor for two (2) years. After that time, ESOs will be required to have their own federal status as a nonprofit. If your nonprofit is in formation or has not yet received its 501(c)3 designation and your organization has a documented relationship with a fiscal sponsor, you may apply through your fiscal sponsor. A fiscal sponsor is a nonprofit organization that provides fiduciary oversight, financial management, and other administrative services to help build the capacity of a nonprofit organization that hasn’t yet received their federal 501(c)3 designation. Roles and responsibilities of each entity are negotiated and documented in a written agreement and this document needs to be uploaded with their fiscal sponsor’s IRS documentation. If your organization’s tax-exempt approval is currently pending, we don't recommend that you apply for this funding (without a fiscal sponsor) unless you believe the IRS approval will occur by December of this year. We would not be able to contract with your organization unless the 501c3 was in place or if you have a fiscal sponsor.

Our organization doesn’t qualify because our budget is too small for any of the grant opportunities in this round.

‍We regret the impact of this decision - based on feedback we received from multiple partners, we have applied this approach for this year’s round of funding. Our intent is that WSMA not be the primary funder for any organization. We want to make sure funding is balanced, because if awarded, the grantee receives the entire amount with no reduction at the 3 different funding levels. We encourage you to combine your efforts so that you can apply for a higher amount of funding by working with another organization with a similar mission, that serves a similar community of businesses, industry or geographic region.

Can two smaller organizations apply for a larger funding category by using (or combining) their budgets in order to accomplish similar goals together?

‍Yes, you can. One organization would be the lead entity on the grant with both organizations’ budgets included to show the combined totals. The Scope of Work must be clear regarding the deliverables, and there needs to be a simple Memorandum of Understanding (MOU) as to the roles, services and funding allocations for each partner.

My company is a commercial business but I have an alliance with a nonprofit. Can I work with a nonprofit who serves businesses and supports their mission potentially as a consultant on their grant application?

‍Yes, the nonprofit would need to apply for the grant. Nonprofits can seek to consult with or hire a business in order to accomplish the goals of their grant such as providing technical assistance to businesses, training other business services, and outreaching to small businesses. The details of consultation should be included in the application.

Is this only for existing technical assistance providers?

‍Yes, if your nonprofit has at least one year of experience providing business support to microbusinesses with dedicated resources, tools, and services and you want to grow your business programs, you are encouraged to apply. Please make sure you have realistic goals and objectives based on your expertise, nonprofit capacity and ability to reach the entrepreneurs in your network within the grant period.

Can an organization directly apply for a grant and be a named contractor in another nonprofit’s application?

‍Yes, as long as the services and tracking are distinctly separate. This type of collaboration encourages innovation, important connections and can leverage resources and knowledge in the long term. The nonprofit would submit the proposal and the contracted organization would be listed and paid as a consultant. There needs to be a Memorandum of Understanding (MOU) that defines the relationship between the parties. The applicant organization would be responsible for monitoring and evaluating the services by the contracted partner under the agreement and providing all of the data collected by the contracting partner about their services to WSMA.

For eligibility, does our organization need to be live on the Evergreen BizLink platform or just have an application submitted?

‍There is no requirement to have a profile on Evergreen BizLink if you have never received grant funds from WSMA. If you have received grant funds from WSMA in the past and are not currently a Resource Partner on Evergreen BizLink or have not yet applied by December 15, 2024, you will not be eligible for funding in this grant cycle. If you are awarded, you will have an opportunity to apply before grant funds are disbursed.

We applied before and got the grant. Can we apply again?

‍Yes, your organization can apply for funding from WSMA every year. If you have received funds before, you are eligible to apply again.

Can nonprofits that are based in other states but do business in WA qualify?

‍Yes, On rare occasions,WSMA has funded out of state nonprofits that are licensed in the State of Washington, have a presence and direct connections with Washington based businesses and a history of providing services in

Washington State with the expertise and ability to provide ongoing support to these businesses over time.

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General Questions

What is the start date of the project?

‍Funding decisions will be made on or before December 20, 2024 and Scopes of Work will be finalized with funded grantees and contracts signed thereafter. The start date will be the date of signing by both parties.

Will the Information Session recording be shared?

‍Yes and it will be posted on the WSMA YouTube Channel. In addition, frequently asked questions and answers (FAQs) will be posted to our website after the sessions once we review, clarify any questions we have and respond to all the questions/answers.

Are the sectors listed in 1.A. a priority and will applications that focus on those areas be rated higher?

‍The projects that focus on the sectors listed in those sections, including cross sector collaboration and innovation within and among the sectors, will be prioritized.

If an applicant wants to pursue both a technical assistance and capacity building initiative, should they submit one application for a combined amount or two separate applications for each initiative?

‍Nonprofit organizations can only apply for one grant in this grant cycle. If the applicant seeks to apply for capacity building support it must be linked in some way to training/technical assistance support for microbusinesses. Additional business training/technical assistance services are also allowed and the applicant would describe how everything they are doing on the grant would unfold in one application, with one budget.

What is the source of WSMA funds, state or federal?

‍This grant program is funded by the State of Washington through the Department of Commerce.

How much total funds do you have to award this round?

‍We have $2M in funding available for this round of grants.

Does WSMA have any sense of how many grants will be awarded at each level of funding?

‍There has not been a predetermined number of awardees in the different funding categories.

Does WSMA anticipate this to be an annual funding opportunity?

It is our hope that this support from the state will continue, but we can not guarantee annual funding. ESO training, technical assistance and financing programs serving microbusinesses over these last several years have been profoundly impactful and WSMA will continue to fight for funding for ESOs to continue this vital work.

Would networking events count under the training category, so we could help our startups attract new customers/meet new connections?

‍If the networking events are not tied to training, technical assistance, financing support or skill building, they may not be as compelling or rank high by the reviewers. However, if the networking event draws more business into your network and engages them into your business programs (or adds value through training, technical assistance or financing), the impact will be more foundational for the business owners.

What are the reporting requirements once an organization receives a grant?

‍All awarded grantees will submit a final report on or before June 16, 2025. A report template will be delivered to each funded organization and will request a short summary, key lessons, successes, challenges, business testimonials, and economic impact outcome data.

Are the questions for reporting publicly available yet?

‍We have included several sample questions in the Program Guidelines. Once we have all the questions finalized, we will be sharing those with organizations that have been awarded funding.

Can WSMA review our application in draft form and give feedback to enhance our application?

‍No. However, WSMA staff are available to answer questions and to assist. It is important to submit your proposal early for questions and troubleshooting in case of any difficulty in uploading your documents, submitting your application, etc.

We missed the WSMA Grant Information Session. Where can we go if I have additional questions?

‍In line with WSMA’s commitment to conduct an equitable and accessible application process, technical assistance will be offered to support organizations with determining their eligibility and in completing their application. Eligibility, programmatic, translation and project assistance will be provided between October 30 and November 22, 2024.

• Eligibility, programmatic, translation and project assistance, contact lisa@wamicrobiz.org
• Portal technical assistance, contact catherine@wamicrobiz.org

Can you please define "Technical Assistance"?

‍Technical assistance can take many forms and be provided to a group or as one-on-one. These services can include business coaching or specialized assistance in a specific industry sector and/or include business support for business planning, cash flow projections, marketing, operations, tax preparation, and etc.

What is the difference between training and technical assistance?

‍Training is for an ongoing group of people (for example: 10 weeks, 3 hours/week program with curriculum, homework, etc.) while technical assistance is more individualized (one-on-one mentoring or individual/group coaching) or focused on specific consulting with a business, in an industry or with a small group of businesses.

Is it possible to combine this grant with funding from other sources?

‍Yes. In prior years, we required a match. If you have a large project where your organization can fund business services with WSMA funding and other sources of funding for other costs (including food) that is totally acceptable.

These funds can’t be used for loans, correct?

Correct. Applicants may not use these dollars to lend, grant or provide any direct financial assistance to businesses or entrepreneurs. They can be used to help businesses apply for money from another source. From the Guidelines,“Grants approved under this contract may be used to pay project related expenses, including but not limited to rent and utilities, consultants providing technical assistance, training, outreach and education materials, translation and interpretive services and efforts to help keep businesses in operation. However, funds may not be used for equipment (tangible property including but not limited to copiers, vehicles, furniture, software and technology infrastructure) nor delivered directly to entrepreneurs or businesses. This includes but is not limited to stipends, grants, transportation support, or other funds of any kind provided to businesses and/or business owners.”

If grant funds can’t directly go to businesses then are we expected to only use WSMA funds to provide business technical assistance and workshops, etc. that support accessing financing?

‍Yes, if applying for funds related to microloans or financing, your ESO nonprofit would be able to use these funds to provide the business technical assistance to help those entrepreneurs prepare for accessing financing. So, if you are providing training to learn how to apply for a loan, you are helping them fill out the application, you are helping them understand what level of financing that they are looking for, all of that technical assistance support is eligible for these funds. But the actual loan dollars that you would actually award to the business owners must come from other sources. A lot of the microlenders in our network apply WSMA grants to support the businesses they serve and then use separate loan funds to finance these businesses.

Can we use these funds to pay for individuals to start small businesses, like giving them seed funds or cash to apply for business licenses?

‍No, your organization can not provide WSMA funds in the form of cash payments, loans, or incentives directly to entrepreneurs or businesses. You can offer technical assistance to these businesses in support of accessing a business license, but not for the license itself.

Are we required to use WSMA designated trainers or can we contract out to others for technical assistance?

Your organization can contract with skilled internal or outside specialists and consultants. You must identify them, their role and the cost on the Fund Request Form.

Does the immigration status of our clients matter? Can we use this grant to support people who are currently immigrants and/or undocumented?

Yes, it is our understanding that these funds can be used to provide business support services for immigrants and refugees.

If we provide services statewide but have a lot more presence in certain areas, do you recommend writing the proposal for providing services in those specific areas?

‍If your statewide organization is focusing on a specific part of the state, make sure to define your service area, industry sector or the communities in which you are conducting your programs. It is a priority to reach communities or parts of Washington State that are underserved.

I have concerns about the Expected Outcomes. It requires a bit of crystal ball types of estimates, which is really unknown.

‍These are just estimates. Be as realistic as you can when you are setting your program goals based on your experience, past track record and outreach efforts. Put in a 0 in the portal if you are not providing that specific specific service with your project.

If clients are a part of an ongoing training do we count attendees once for each session attended or once for the overall training?

‍Count that attendee once for the overall training as one unduplicated business served. You also count the number of training sessions and the hours to help gauge the caliber of the work that the entrepreneur is receiving.

Do we need to break down the services we provide into the different demographics within the rural and urban areas of our programs?

‍Early in the application, you indicate whether your services are being applied to urban, rural or statewide areas. You will only count the demographic information in the anticipated outcomes section. In your narrative, you will describe the services you’ll provide along with an estimated number of the people you will serve. This will be outlined in the Scope of Work and then entered into the platform into the categories of service.

What will you require as part of reporting for programs we provide? We have confidential clients and cannot release names.

‍You will need to track the types of programs you provide, who and how many people attend these programs or receive your technical assistance. After the project is over, you will describe the type of services you provided and general information about the businesses served (e.g., a compiled total of businesses assisted, number of employees, etc.). We will not ask for any names of participants or sign in sheets, we are mainly looking for the impact of the businesses assisted/trained.

To what extent do reviewers consider impacts & outcomes vs. just #s, #s and #s?

‍Reviewers base their reviews on the quality of the strategies, geographic areas served, demonstrated relevance to the needs of the businesses being served and the capacity of the organization to accomplish the goals within the timeline of the grant. They evaluate the impact of your services on the businesses you reach and your ability to track and document that impact using recognized metrics and outcomes, including technical assistance provided, businesses started, jobs created, etc.). Reviewers also consider how impact is measured differently for different communities, including quality of life, increased revenue, new employees, wealth creation, new location, greater confidence expressed by businesses served, stability, hopefulness, etc.

Do reviewers consider performance of the organization on past WSMA contracts?

‍What we have found is that the applicants’ narratives often highlight their experience and progress serving small businesses with prior grant funding in order to lay the foundation for their work in their current proposal. The reviewers read and take into consideration all of this information when they form their decisions.

Are gig workers who receive a 1099 included in the definition of an entrepreneur with five or fewer employees?

‍Yes.

Is there a required match for this round of grants?

‍There is no match requirement.

Budget and Request Form Questions

On page 7 of the grant guidelines it says, "An organization can apply for only one category" Does this refer to the budget category or the training, TA and microlending?

‍The budget category - choose one category of funding only - either a $20,000 grant, $40,000 grant, or $80,000 grant. There is broad flexibility for the types of services you are able to provide within each category. Traditionally, ESOs provide all three types of services.

Can our ask be below $20,000 or is that the minimum?

‍No, These are the only funding categories ($20,000, $40,000 and $80,000) that are available at this time.

Can you please say more about the "ability to reach an average x# entrepreneurs per month..." element of the Program Guidelines?

‍Yes, developing these funding categories was designed to better support organizations to tailor their grant proposals for what they’re able to accomplish based on their size and ability to reach entrepreneurs with the most comprehensive impact possible. “Reach” in this context means providing at least one hour of in-depth business support to a unique business. So, for example, a nonprofit might hold an information session for 5 entrepreneurs in one setting and host another one-hour workshop for 8 entrepreneurs at a different time in the same month (2 of whom attended the information session). This would be an example of 11 unduplicated businesses reached over that month period. Some months there may be greater or fewer numbers of businesses reached because of the type of service - we are looking for an average number of unduplicated businesses served over the grant period.

When you're talking about average # of businesses served per month, are those unduplicated for each month? Does that mean we have to serve that many, even if we're applying for capacity building work?

‍Yes, these are unduplicated businesses and these are minimum numbers (approximately one business served every other day). The average figure is a guide to help you both have relevant, meaningful content, and effective reach for the program services that you are providing. Our intent for including an average figure is to help ESOs gauge their capacity for which level of funding to apply for. Even if you are applying for capacity building, we want you to be able to test that capacity building support on businesses during the grant period. Funding can both apply to business services related to your capacity building support and other services to businesses.

If an entity applies for a higher $ amount category, will they solely get approved/declined for that category or have the potential to qualify for a smaller dollar category?

‍No, although there may be discussions to clarify application details, if approved, awardees will receive the amount they applied for and the amount won’t be adjusted. If you are a larger organization, you have the experience and the capacity, you meet those benchmarks, I would apply for that higher amount.

Can we use the funds, stipends, seed money, incentives to entrepreneurs, employees or businesses?

No funds can go directly to entrepreneurs, workers or businesses. WSMA funds can not be provided directly to any businesses. We recommend finding another revenue source if you want to provide stipends or incentives.

Can we start a loan fund to help businesses to formally start their business (e.g. help to pay for licensing, registering with the Secretary of State and purchase business insurance, etc.)?

‍Applicants may not use these dollars to lend, grant or provide any direct financial assistance to businesses or entrepreneurs. They can be used to help businesses apply for money from another source. WSMA will continue to provide training opportunities to enable ESOs to become microlenders.

Can we use funds to pay contractors / consultants that are doing professional development sessions for businesses?

‍Yes. You will need to include them on the Consultants line of the Fund Request Form (which should include the name, rate and activities of the contractor/consultant).

How much should we pay a consultant?

‍It depends on the nature of the work and their rate. However it is critical to ensure that consulting rates are reasonable, in alignment with the expertise, years of training and/or credentials.

One thing I'm super excited about is hiring researcher/s consultant to help us - but I wonder what happens if we don't have that vendor lined up in time for the application

‍Proposals with detailed plans for engaging with researchers, consultants, and other contractors by providing description of the costs of these services, type of services, and the timeline for service delivery will be ranked higher.

Can grant application preparation costs (like a grant writer) be included in the budget request for this grant?

‍No, as those costs are incurred before the grant start date.

Is staff time spent underwriting micro loans an eligible use of funds?

‍Yes, because you are providing technical assistance and support in helping that business get access to financing.

Could the funding be used for marketing/outreach materials letting entrepreneurs know about our services and/or workshops and training?

‍Absolutely. And, these WSMA grant funds can also be used to translate these materials as well.

Is WSMA offering translation services only for the application materials or are funds in the grant proposal available for program materials our organization might produce for research/outreach purposes?

‍Yes, translation and interpretive services are an eligible grant expense and can be listed on the Fund Request Form.

Is there a list of ineligible expenses?

‍From Section 3 of the Guidelines: “Grants approved under this contract may be used to pay project related expenses, including but not limited to rent and utilities, consultants providing technical assistance, training, outreach and education materials, translation and interpretive services and efforts to help keep businesses in operation. However, funds may not be used for equipment (tangible property including but not limited to copiers, vehicles, furniture, software and technology infrastructure) nor delivered directly to entrepreneurs or businesses. This includes but is not limited to stipends, grants, transportation support, or other funds of any kind provided to businesses and/or business owners. Further restrictions will be highlighted in the contract for services once grants are awarded.”

If it is an outreach event can catering/food be covered or only venue costs?

‍Only the venue costs. This funding is not intended to cover food costs. We understand that having food available is important not just to support the learning environment but for encouraging attendance. If you have to rent a hall to provide this programming, your food costs should be covered by one of your other partners, or a sponsor.

No software expenses allowed I understand, how about our WAN or wide area network agency technology system?

‍WANs usually consist of broadband internet services and multiprotocol label switching (MPLS), which is a form of data-forwarding technology used to control traffic flow and speed up connection, while wireless WANs normally include 4G/5G and Long-Term Evolution (LTE) networks. WANs can be connected together using the Internet, leased lines or satellite links. We believe that these expenses can be covered but grant funds can not be used for any of the equipment costs and can only be applied to the contract period and not past June 16, 2025.

Are operational costs (e.g. Exec Director, volunteer coordinator, etc that have a role in planning/running the project) legitimate expenses to include?

‍Yes, these expenses are eligible if they are specifically related to the project you are proposing and you can demonstrate impact on the businesses you are serving. Be sure in the proposal to spell out the role(s) played in the project by those personnel.

For the upload of the organization budget, is that the most recent completed year or the current year?

‍We are asking for two organizational budget documents: As these funds need to be expended by June 16, 2025, we request your organizational budget for the 2025 calendar year; to determine your eligibility for the funding category we want to see your organizational Profit & Loss (P&L) / Income Statement (actuals) from the 2023 calendar or most recent 12-month period.

What can we charge to personnel in our Funding Request Form?

‍According to the Fund Request Form, “Applicants can charge “Staff wages only” All payments accrued on account of payroll taxes, unemployment contributions, any other taxes, insurance, benefits or expenses for its staff shall be the sole responsibility of the grantee.

Is it permitted to use these funds for the labor expense (salary + fringe) for the employees who will be doing this work? For example, we are considering hiring another advisor to provide exclusive Spanish-language technical assistance – could this grant pay a portion of their salary during the grant period?

‍Funding from this grant can be applied to employees. If you are planning to use the funding for Spanish language technical assistance, that would be an eligible use, as long as WSMA funds were applied solely for wages and only for services to businesses during the period of this grant.

Does the work need to be accomplished by June 16, 2025 or paid by June 16, 2025?

‍The work must be completed, all funds expended and your report submitted by June 16, 2025.

Can expenses include hiring a staff person?

‍Yes, these grants can be used to help fund a staff person to do the work under this project, but all funding must be expended by June 16, 2025. Any WSMA funding received in this grant cycle can not be used for wages/salaries after June 16, 2025.

Can you use funds to pay for out-of-state (remote) staff?

‍If the staff person is an employee of the nonprofit and that person is providing business technical assistance to Washington based entrepreneurs, this would be an eligible expense.

Can we pay a consulting fee to our Board Members or our staff?

‍It would be important for your organization to consult your internal governance documents, the Secretary of State’s office or other state agencies to ensure that there would not be any conflicts of interest in paying for board members or key staff for services rendered as a consultant.

Would it be reasonable to help us learn the skills to give micro loans when we haven’t in the past and ask for micro loans? We specially serve artists and cultural workers.

‍The decision to become a microlender (SBA microlender, USDA microlender, or microlender using private funds, etc.) is a significant one and takes time to establish the program, formalize the underwriting and lending services, obtain the funds to be effective, but it is doable. If you are interested in becoming a micro lender, please reach out and connect with WSMA and we will help you develop a plan that works best for your organization. There are several micro lenders in Washington State where your organization can send the entrepreneurs for microloans. WSMA grant funds can be spent by your organization to help these entrepreneurs prepare for financing and a meeting with a lender.

Can you explain again how to upload the Funding Request Form?

‍You can read how to do this in Sections 10 of the Program Guidelines and we will post a grant portal walk-through video on the WSMA YouTube Channel.

What if I need additional rows on the Fund Request Form?

‍You are able to insert a row by right clicking. Copy the row above and it will automatically insert the formulas. Need more help? Reach out to WSMA.

Portal and Technical Questions

Where can I log on to the WSMA grant portal?

‍The portal link is on our website, but you can also access it directly here.

I know I can edit my application, but how do I access it in the portal once I’ve started?

‍On your Dashboard, you will see “In Progress” under Applications. You should find your active application here. Click to open the application you are working on. Do NOT open a new application under the Funding Opportunities as this will create a duplicate application.

When I tried to find our organization on the portal (“New To The System?”), I did not find our organization by using our name or EIN number.

‍Try to use only the EIN or the Name, not both when searching. Still not finding it? Try using one word of your organization’s name then sorting by state (use Washington). Sometimes older organization names show up. Still not finding it? Reach out to catherine@wamicrobiz.org

What were the 6 items you said to have ready to upload our application to the WSMA Grant Portal?

‍During the Portal Walkthrough we recommended 1.) Questions answered on a Word document so you can copy & paste into the Grant Portal, 2.) Completed Funding Request Form in Excel, 3.) Expected outcomes ready to copy & paste into the Grant Portal, 4.) Organization Budget for the current or 2025 calendar year, 5.) Profit & Loss (P&L) / Income Statement (actuals) from the 2023 calendar or fiscal year or most recent 12-month period and 6.) Organization (or fiscal sponsor) IRS 501c3 Letter of Determination. If you use a Fiscal Sponsor, you will also need to upload a written agreement to the relationship.

If we submit our proposal before the deadline of November 22, 2024, can we go back into the portal and make changes?

‍Unfortunately, once an applicant submits their application, you can NOT make changes. However, If you accidentally submit before completion of the application, please contact catherine@wamicrobiz.org as soon as possible.