Starting a small business requires many factors to be met. Along with a business model that meets an unmet need, a market for the product or service and a location in which to run the business, a small business owner will require capital. Loans, credit cards and private investors are some means commonly used to start a small business. In a slow economy, however, these sources are harder to find. Another option to consider is federal grants.
Related Searches:
Function
Federal grants for small businesses are available throughout the United States. Grants are money provided to small business entrepreneurs who meet certain criteria determined by the department offering the grant. There are often special grants available to be used as "seed" money to start up a small business. A grant is similar to a scholarship and is not a loan. Federal grants do not have to be repaid to the government.
Types
There are many types of federal small business grants available. The economic development agency of each state is given money by the federal government to distribute to small businesses. There are grants available to business owners who meet certain low-income guidelines, grants for women entrepreneurs, grants for minority business owners and grants for small businesses starting up in impoverished or underdeveloped communities that will provide jobs, among others.
Time Frame
When applying for a federal small business grant, it is crucial to begin the application process as early on as possible. Grant applications or proposals usually have a deadline. If an application is submitted after the deadline, the proposal will not be considered. The decision process can take up to 6 months after the application deadline date. Once the decision has been made, it can take from 1 week up to another 6 months before the grant money is awarded.
Considerations
Federal grants for small businesses are small in number, especially when compared to the number of applicants competing for them. When applying for a federal grant, it is imperative that a small business owner follow the grant application instructions to a tee. If any requirements are not met, the proposal will be discarded immediately. The same goes for including items or documents that are not requested as part of the grant proposal. Timeliness and neatness count as well.
Warning
Many dishonest companies promise to obtain grants for small business owners. These companies request a fee, ranging from $50 up to $200, in exchange for securing grant monies. These companies will then do no more than send the consumer a list of grant opportunities. Small business owners should verify a company offering such results with the Better Business Bureau or the Federal Trade Commission.
New business federal grants are monies awarded by the government that provide financial assistance for aspiring new business owners and their associates...
