How to Get Grant Money to Start a Laundromat
There is not much grant money available to start most businesses, but it is not totally nonexistent - just rare. Economic development initiatives are part of most state governments these days, and some cities also have economic development corporations and private industry councils. These agencies can guide you to grant funds available for your region.
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Things You'll Need
- Directories of grantmakers, both national and local, from your public library.
- Directory of Grants for Individuals by the Foundation Center from your library - there is also an online version your library may subscribe to, or you can subscribe yourself. See the link in our Resources section of this article.
- Small Business Administration district offices (a link is provided in the Resources section)
- Community Foundations in your area (see link in Resources section)
- Information from your state and local government on Economic Development initiatives in your area
Instructions
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Check with your state government's economic development corporation to find out what grants they offer for small businesses. The federal government isn't a good source because it typically makes grants to state and local governments, not to individual business owners. However, you can apply for a small business loan through the Small Business Administration.
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Check with your local government, such as your city's economic development corporation, as well as your city's private industry council. Using Indianapolis as an example, the city right now is not offering grant funding to finance a laundromat start-up, but the city is offering property tax abatements if the laundromat occupies a qualifying vacant building. The building owner would not have to pay any property tax for the first year, and only 50 percent the second year. This savings could help your laundromat get off the ground.
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Check with your local community foundation, if your community has one. These foundations typically only make grants to not-for-profits, but they can tell you if they have funding for small business start ups. They can also guide you to other funders in your area who may be open to funding a laundromat business.
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Consider establishing your laundromat as a not-for-profit, perhaps serving charitable organizations, such as women's shelters, homeless shelters and individual homeless people. This would increase your chances considerably to find grant funding to start a laundromat.
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Tips & Warnings
If your library is small and doesn't have a directory from the Foundation Center, go to the nearest city's library. They will let you use it while in the library free of charge.
Don't fall for the ads about all the free grant money you can get. Most grantmakers can be found through your public library.
