After Letters of Support, the next letter many grant and loan guarantee applications will require is a Letter of Intent. This type of letter is necessary for any project where you’ll be working with another entity for things like financing, distribution, raw materials or sales. The letter of intent basically says that, pending the grant award, the company authoring the letter agrees to committ at a later time to the agreed upon contract.
Letters of Intent are different that Letters of Commitment which I’ll cover in my next post. A letter of intent is not a necessarily a firm commitment from a raw material supplier, for example. Rather it is a letter that says you are still in the negotiation process but are planning to move forward, especially if you receive your grant or loan guarantee financing.
Some grants will require firmer commits than letters of intent, while others simply want examples of the types of systems you’re setting up and where you are at in the process. Check program details for the specifics.
-To your Prosperity!
Sarah
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