Grants for First-Time Businesses
Grants are funds that do not have to be paid back. The amounts of grants for first-time businesses can be large or small. There are different types of grants for first-time businesses, including corporate, private, government and federal, and the grants can help with the marketing of the first-time businesses.
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Benefits of Grants
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When individuals start a business, they run into all types of issues, such as employees, office space, product purchases and other business issues that require funds. Borrowing money is an option, but for those businesses starting out, credit can be an issue when applying for a loan. Another option for start-up businesses is to apply for grants, which have requirements that generally have nothing to do with an individual's credit score.
Grant Resources
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The Small Business Administration (SBA) does not offer grants to new businesses starting out. The SBA does offer assisting and research tools and databases of federal and government grants that can come in handy to a starting business. To get help with locating these federal and government grants, a business owner or representative should locate the local SBA office in his town for assistance.
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Scam Warning
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There are some grants out there that are scams. First-time businesses should verify the legitimacy of a grant donor before applying. The fraudulent donor could be asking for personal and vital information, such as bank account numbers and social security numbers of the business owners. A grant donor does not typically ask for money from a first-time business, so this should also be a clue the grant is a scam. A first-time business owner who is scammed should contact the Federal Trade Commission and file a complaint.
Identification
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It is illegal to apply for grants that are designed for first-time businesses when the business is not being operated for the first time. If a business has been in existence for a few years but this is the first time that the business is applying for a grant, it's okay. However, businesses that repeatedly apply for first-time grants can be denied grant money and even be asked to repay any previously awarded grant money.
Misconceptions of Funds
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Not all grants are awarded to first-time businesses without having to be repaid. In fact, some corporations that donate to first-time businesses generally feel that the corporation can benefit from the business in the near future. If the corporate grant requires the business to give up shares of the company and stock, the first-time business is liable to the terms after accepting the grant. A business can be sued in court if the business owner does not abide by the terms and specifications of the grant.
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