About Grants for Opening a Small Business
Many entrepreneurs looking to open a small business are faced with the need for sufficient capital to start and sustain a small business in its early days. Fortunately, for qualified individuals there are funding options available to help open a small business through government or private corporation grants. Most small-business grants are highly coveted and sought after by not only new business owners, but established owners looking to branch out into other areas and start new businesses.
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Qualifications
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The qualifications for small-business grants depend upon the agency to which you apply. All government, state and private small-business grants require that an individual meet specific requirements regarding the start-up costs, purpose of a business and how it affects the community. Specialized grants from organizations such as the Environmental Protection Agency (EPA) and other federal government programs grant monies almost exclusively to research, nonprofit, science and educational businesses.
Types
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State programs are more apt to offer small-business grants to individuals than federal agencies. When seeking a grant at the state level, individuals should contact the Department of Commerce or other economic development agency within their state. These agencies will often have not only state-issued grants, but resources about local private grants as well.
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Grant Proposals
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Writing a grant proposal is an important factor in obtaining a small-business grant. Nearly all grants require a written grant proposal or letter in addition to an application. Grants have a limited budget and there is usually stiff competition when applying for business grants. The right grant proposal can give an individual an edge over others vying for the same grant. A well-written grant proposal should include the vision, budget and time line of a small business.
Considerations
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Grant reviewers lean heavily toward small-business proposals that offer something to the environment or solve a community problem. Small businesses creating jobs, helping low-income individuals or new and innovative business propositions are more apt to receive start-up grants.
Private Grants
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Private corporation grants are usually geared toward specific demographics and can be harder to find than state grants. From historical grants to agriculture grants, private corporations or foundations offer grants in their particular fields.
Women and Minority Grants
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Small-business grants catering exclusively to minorities and women are an option for some people. Government, state and private agencies have grants available to get minorities and women more involved in business and to help them become business owners. For these types of grants, individuals should contact the Small Business Administration in their state, or the Minority Business Development Agency run by the U.S. Department of Commerce.
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