About Grants for Starting a Personal Business
Grants for small businesses are offered by state, local groups, non-profit and other organizations. Though grants exist for small businesses, they are not "free money," and getting a grant for a small business can be difficult. Thousands are available, but most are for research and development or for human resource services, according to Michigan State University (MSU) Libraries. Getting a grant for a small business may also have many stipulations if one qualifies, MSU reports.
Other People Are Reading
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Grant Scams
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There are many grant scams. They offer information that is already free online, or will promise to do all of one's paperwork for a fee. Some grant scams claim to have a special connection to facilitate getting a grant, according to Startup Nation. You don't need to pay to attend a seminar about grants. Do not heed late night television ads or Internet scams that charge for information about government grants. It is all online for free, MSU reported.
The Real Deal on Grants
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Most federal government grants for small businesses primarily encourage research and development, or prefer businesses that will operate in a poor area and hire people there. They will not normally be available for a typical business, MSU said. Government grants may have stiff stipulations and may require an accounting of how the money was spent. One may have to offer a personal guarantee which could require an asset, or provide 10 to 30 percent of the amount whether through one's savings or loans, MSU reported. Applying for the grant is time consuming and hard. Startup Nation said qualifying for a grant is nearly impossible unless you have an impeccable application.
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Stipulations on Grants
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The few government grants available usually focus on research and development for biotechnology, energy related products, high technology and military products, according to MSU. Grant money must go directly to the business, not personal expenses, and one may have to account for expenditures. Many government grants are in the Federal Register and are only available for a specific period of time annually.
Sources of Government Grants
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The Small Business Administration, or SBA, has a list of federal grant resources and the SBA Grant Listing. The organization does not directly give grants to small businesses, but can connect you with bodies that do, according to D&B Small Business Solutions. For example, the SBA coordinates with the Small Business Innovation Research Program, which endows grant funds for research and development.
Business.gov has a free search tool Grant, Loan and Financing Search tool for small businesses, Home Inc. says. Another source is the Catalog of Federal Domestic Assistance, according to MSU.
Grants.gov lists some 900 grants. Every state also has a body for business grants, usually under the Economic Development Agency or the Department of Commerce. Other options are The Minority Business Loan Programs, the Economic Development Directory website or The Foundation Center, D&B reports.
Grant Writing
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For help in grant writing, making a mini grant proposal or related needs, contact your local SBA branch. Staff will be able to help you find a professional who will assist you or provide free materials to get you started. Federal website, Grants.gov, also provides a number of resources to help novice grant writers.
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References
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