Government Grant Money for Small Business

For a business owner trying to start up a new company, government grant money may be the boost that gets the ball rolling. It can be quite difficult for a new company to qualify for traditional bank loans because it has no way of proving its financial stability.

Identification

Government small business grants provide funding to companies that do not have to be paid back like a start-up loan.

Misconceptions

Federal grants are not available for start-up companies that have not become an official entity. Private grants for small business loans can be used to get the company off the ground, then the business owner can apply for funding from the government.

Types

Government grants are generally given to small businesses in industries that benefit society as a whole, such as medical or scientific research. Companies that engage in education or job training may also qualify for grant money.

Sensitive Information

Whenever personal or financial information is involved, there is the risk of scammers and identity thieves. If you are unsure about a particular person or organization, contact the Federal Trade Commission at ftc.gov to see if there are any complaints or investigations related to them.

Considerations

Many grants require a formal business plan along with your financial information. This is especially true for grants with recurring payments because the government needs assurance that the company will be successful in the long run.

References

• Guide to Federal Grants

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