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Step 1
Have no more then 100 employees working for the business. By the U.S. Small Business Administration a small business has no more then 100 employees.
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Step 2
Build a working capital. Defined as the excess of current assets over current liabilities, working capital is necessary to show the granters the company can pay ongoing operational needs.
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Step 3
Invest in your own company. The Small Business Administration nor any other private or government agent will want to give grants and loans to businesses that is not invested in their own company. Debt-to-worth ratio will be determined before a applicant is approved.
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Step 4
Be able to demonstrate the ability to repay government loans. This typically means that the financial records show the business has enough incoming cash to pay the payments. Be prepared to give the granters a monthly cash flow projection of incoming and outgoing money.
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Step 5
Get collateral. While not all programs will reject applicants without adequate collateral if all other requirement are met, applicants lacking in some areas can make up for it with having collateral. Collateral is something the bank can sell to get their investment or part of the investment back if the business does not pay the government loan. The collateral can either be from a business or personal source.
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Step 6
Provide and show good management for the business. Typically a business that is seeking government loan or grant assistance will need to show the grantor the business has good management behaviors. This includes paying bills on time, giving good service, and operating the business in a ethical manner.
