Business Grants for Women Entrepreneurs
Free money in the form of business grants for women entrepreneurs is rare. Most women fund their start-ups through Small Business Administration (SBA) loans, credit cards and personal loans. New business owners must find a niche funder that is looking for exactly the kind of business they are starting. Most grants are given to nonprofit organizations and those with a social agenda. There are, however, a number of sources that could provide a grant to a female entrepreneur with the proper credentials.
Other People Are Reading
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Amber Grant
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The Amber Grant is a $500 award given to a woman entrepreneur from Prewitt Investments III, which also operates Womens Net, a resource site for women in business. It is awarded in memoriam for the sister of the website's owner who was killed at an early age.
Network
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New business owners should network to build the business, meet contacts that can provide referrals and to learn about grants and contests. Small grants are sometimes awarded to members of trade groups and industry associations. Other groups, such as the local chamber of commerce, often make grants available to members who meet certain criteria. Association with industry and community groups can pay off in a wide variety of ways.
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Contests
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Enter contests for awards and prizes that can help to offset start-up costs. Many grants are awarded as the result of a contest that is run by a website or other company looking to increase traffic. WebMomz gives away a $500 grant every year to a female entrepreneur with a business plan for a $10 fee. Entry in these contests often requires joining a newsletter or other marketing vehicle for the site.
Economic Development
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Local economic development groups, such as Rockville Economic Development, Inc. in Maryland, award prizes up to $20,000 for new female business owners. The entry fee is $25 for the grant application. In Philadelphia, the Enterprising Woman Business Plan Competition supports women-owned businesses that earn less than $250,000 a year with cash and prizes. Entries must be from restaurant, retail or service businesses. A $35 application fee is required.
Government Grants
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The SBA generally does not provide grants for starting or expanding a business. While there may be special grants awarded through various governmental departments, such as the Department of Commerce or Health and Human Services, the bulk of small business is steered through the SBA. When various departments receive funding for grant projects, they are listed on the government's website. See the Resources section for a link.
Warning
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Beware of offers for thousands of dollars in free grant money. In most cases, the advertiser is merely selling lists that are easily accessible online through any search engine. Just like any online offers that look too good to be true, they usually are.
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