how do small business grants work?

I really want to know if I should get a small business grant or a small business loan

This question and answer was related to small business grants, we hope that it helps and give you some further ideas about how to apply for free government grants, and grants from other institutions

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4 thoughts on “how do small business grants work?

  1. ColorfuLady

    I have operated a grant research and writing consulting firm for 30 years. Do not buy into the myth that there is FREE MONEY out there for your to start your business. The people who sell this information make their money off of people who are looking for something for nothing.

    Contact your local Small Business Administration (SBA) for courses and services that can help you learn how to do it the right way.

    The government DOES provide GUARANTEES for qualified loans that may be advantage to you should you be prepared to go the professional convential route of borrowing money to establish your enterprise.

    Good Luck and stay away for the FREE MONEY SCAMS.

  2. paul20yorkshire

    im not really sure but i think it works like this = a grant is a one off payment towards helping you find your feet and a business loan is a loan that you have to pay back.try the princes trust you dont have to start paying them back until you are well established and there rates are great.business link could help you too.hope that helps

  3. inhotwater

    Contact the SBA they have the guide lines to determine which one you need. While your at it see if you can fine "the retired businessman’s association" in your area. they will supply you with some great help (bus plan etc)and it is free.

  4. imisidro

    It is hard to find grants to start a business. Unlike the myths that some perpetuate, federal government and even private foundations hardly give grant money for a for-profit business. And yes, grants mean PAPERWORK – lots and lots of it, that is why a cottage industry of grant writers was born.

    Nonetheless, you can go to the Catalog of Federal Domestic Assistance (CFDA) http://www.cfda.gov and Grants.gov http://www.grants.gov – these are two sites created by the federal government to provide transparency and information on grants. Browse through the listings and see if you can find any grant that would support a for-profit venture.

    Even if you buy books on "how to get grants" or list that supposedly has information on grants — all of them are mere rehash of what CFDA has, albeit packaged differently. But still the info is the same – hardly any grants for starting a for profit business.

    Even SBA does NOT give out grants. From the SBA website http://www.sba.gov/expanding/grants.html

    "The U.S. Small Business Administration does not offer grants to start or expand small businesses, although it does offer a wide variety of loan programs. (See http://www.sba.gov/financing for more information) While SBA does offer some grant programs, these are generally designed to expand and enhance organizations that provide small business management, technical, or financial assistance. These grants generally support non-profit organizations, intermediary lending institutions, and state and local governments."

    Most of the federal grants are given to specific target groups with specific requirements (e.g. minority business owners involved in transportation related contracts emanating from DOT – Grant#20.905 Disadvantaged Business Enterprises Short Term Lending Program

    Grants are also often given to non profit groups or organizations involved in training or other similar activities (grant 59.043 Women’s Business Ownership Assistance that are given to those who will create women’s business center that will train women entrepreneurs

    For private grants, you may want to check the Foundation Center’s Foundation Grants for Individuals Online. It’s a subscription based website ($9.95 per month) but their opening blurb only says that the database is ideal for "students, artists, academic researchers, libraries and financial aid offices." Entrepreneurs are apparently not one of them, so I take it they also don’t have listings of private foundations who give grants to would-be entrepreneurs.

    http://www.cfda.gov
    http://www.grants.gov
    http://gtionline.fdncenter.org
    http://www.powerhomebiz.com/vol66/grants.htm
    http://www.sba.gov/expanding/grants.html

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