Step1
In terms of getting grants for a home-based business this is very difficult.
Many foundations offer grants to individuals for educational purposes in the form of scholarships, fellowships and funds for special studies or research. Many offer grants to non-profit organizations such as Action, Inc., the Boys and Girls Clubs, Project S.A.F.E. and so forth. Many others offer grants to educational institutions for special studies and research.
Generally, foundations do not make grants to for-profit businesses. When an individual finds a grant that assists his or her business, it is usually for a very specific purpose and not for general business operating purposes.
Step2
Foundation Grants
For information on foundations, visit: www.foundations.org or www.fdncenter.org. Both of these sites list directories of foundations and how to apply for a grant. Information about how to submit a proposal to specific foundations can be found on their individual web site. Each foundation is different and thus may have different requirements.
Step3
Also I will provide you ten tips for funding a home based business without getting a grant:
Banks and community lenders don't always take home-based businesses seriously and may be hesitant to lend to them.
But financing is available if you know how and where to look. Here are 10 tips to turn your requests for financing into money in the bank.
1) Let them know you mean business. Your first hurdle is establishing the legitimacy of your proposed venture. It’s your job to convince lenders that your business concept is a winner and that you have what it takes to make it a success.
2) Write a business plan. Rare indeed is the lender who will loan money without seeing a business plan. Lenders need to see not only the business concept laid out, but they will also want to see the key metrics of your business: how much money you will need, how it will be spent, how much you will charge for your product or service, when the business will become profitable, and many other key indices.
3) Hone your presentation. In addition to a business plan, you will probably want to present some kind of product demonstration or sales pitch. Include a demonstration of your product or service, when possible, and present your marketing materials and other collateral. Focus on differentiating your offering from those of your competitors.
4) Look to family and friends. Mom and dad may require a little less due diligence than the neighborhood bank. If a good friend or family member wants to invest, that's great -- but be sure to draft a business plan and write up all the appropriate contracts.
Step4
5) Partner with your customers. If your business is already up and running, you may have customers who believe in you and in your company. If your customers have expressed an interest in investing in your business, draft a proposal and submit it to them.
6) Contact local colleges. Some colleges and universities offer financial support to entrepreneurs through their small business and entrepreneurial centers.
7) Apply for microloans. Some banks, governmental organizations, and business groups offer microloans, which are exactly what the name suggests: very small loans that generally range between $100 and $25,000. Also, most microloans are issued based on your character and management ability rather than on an established credit history. Microloans, in turn, can serve as a springboard to additional financing, and financing establishes your company's creditworthiness.
8) Solicit government agencies. There are several sources of government funding to consider. The Small Business Administration (SBA) doesn't issue loans as such, but they do guarantee loans given by private lenders. This reduces the risk that the bank assumes and makes them more likely to loan to your new business. Contact your local chamber of commerce for information on which government entities offer financing help.
Step5
9) Apply for grants. There are many different types of grants, and there could be one for your home-based business. However, it should be noted that grant requirements are strenuous, and there’s a great deal of competition for small and home-based business grants.
10) Talk to angels. Angel investors invest in fledgling businesses, generally because they know a good thing when they see it. They look for companies that exhibit good growth prospects, have a synergy with their own interests, or compete in an industry in which they have succeeded (this is where a strong business plan comes into play) . If you are seeking equity capital from angel investors, you must be prepared to give up some equity -- and be answerable to your investor.
Enthusiast 
