All About Government Grants
There are no government grants available for a small business unless it is involved the development of new technology, or is a non-profit organization. Many publications state that there are grants on hand to start a small business, the only accessible one is for the research and development of technology-based products and services. If you are looking for funds for your small business, you can find many SBA (Small Business Administration) loans, state and local development loans, and non-government business funding.
Finding government agencies that give grants to small businesses requires a lot of effort and research. It may be difficult to get a grant for funding for an existing business because the government generally gives grants to non-profit organizations.
The best place to research a government grant is the US Government Grant website at http://www.grants.gov. This site will help you find and apply for any applicable federal government funding. You can also find information on the various types of grants that are available and the government agencies that disperse them. Additionally, you can also look at the Government's Catalog of Federal Domestic Assistance (CFDA), which contains a list of various government grants and other types of funding and assistance.
If find a grant that interests you, make sure to read its eligibility criteria carefully. Business owners should be aware that most government grants are not applicable the whole year. This means you cannot apply for a government grant at just anytime. You can only apply for a grant when it is announced in the Federal Register, which is published every weekday. It is a good idea to look for announcements on the Government grants website as well.
It is important to note that getting a government grant is not
easy. There is a lot of competition for federal grant funding and
they are few and far between. A small business owner has to provide
a well drafted proposal which clearly states the objectives and
aims of the business, as well as a plan and budget to be considered
for a grant. If you are awarded a grant you are required to provide
periodic progress and evaluation reports as well as financial reports
to the government because these grants are money which needs not
State development grants
Most people turn to the federal government for grants and funding, but there are quite a few small business grants available from state governments. Many state development agencies offer small business grants directly, while simultaneously offering other types of financial assistance to encourage entrepreneurs in starting or expanding small businesses.
Common Types of Government Loans for Small Businesses from the US SBA (Small Business Administration)
The following are common types of government loans available for
small business, the details of which can be found at the US SBA
website at http://www.sba.gov.
- Loan Type - 7(A) Loan Guaranty Program
- Loan Type - Micro Loan Program
- Loan Type - Prequalification Program
- Loan Type - CDC 504 Program
- Loan Type - CAPlines Program