Grants for Welfare Moms to Start a Business
Women who have children and are on welfare have access to federal government resources to assist them in starting their own businesses. The federal grants are not provided directly to welfare mothers. Instead, they are funneled by the federal government to state and local municipalities and designated nonprofits for business development education and training.
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Women Business Centers
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The federal government supplies funding for the operation of women business centers across the United States. These centers can instruct welfare moms in the basics of running a business and help create strategies for start-up businesses. Welfare moms also have access to equipment, such as computers and fax machines, as well as a library of resources on business planning and operations. This is a good starting point for welfare moms to learn about business.
Access to Capital
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A microloan program is an ideal source of funding for welfare mothers seeking to start a business. The programs, which are backed by U.S. Small Business Administration funding, train potential business owners about credit issues, budgeting, planning and development, and marketing. After completion of the program, the individual is eligible for a loan ranging from $500 to $20,000. The SBA chooses a participating lender or bank to co-operate the program. Microloan programs are created by banks, certified nonprofit institutions or chambers of commerce.
Independent Development Accounts
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An individual development account (IDA) is a way that a welfare mom can save to start a small business. This program is administered by the Corporation for Enterprise Development (CFED) and funded through federal grants. CFED outlets work with participating banks to allow low-income people to build assets and savings for starting a small business and for post-secondary education. According to CFED, there are 27 IDA account programs in the United States.
NxLevel Business Training
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NxLevel provides training services in small-business development. The organization receives grant funding from federal and state governments to develop business incubators, which are places in which welfare moms can learn about business planning and development, financing and organization. A real-life example: Nxlevel has created community kitchens, stocked with restaurant equipment and accessories, that provide fledgling caterers with a place to start their business.
TANF Program
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According to the U.S. Department of Commerce, the Temporary Assistance for Needy Families (TANF) program was created by the federal government to get moms off welfare and into the work force. To that end, the initiative educates women about operating a small business. TANF grant funds are allocated to city governments to work with business development agencies to create business curricula for welfare mothers.
Considerations
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Even though these programs are funded by federal grants, there is often a small fee for seminars and courses. For example, a class on business plans may cost $15.
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