Most of us have seen the ads claiming that free grants for all sorts of things are as easy to get as filling out a simple form and submitting it.
If only that were the case! Government small business grants do exist and people get them every day. However, there is a lot of red tape to cut through before you will be awarded any sort of government grant.
The federal government does not come out of their pocket with money quite as easily as some people believe. The grants program is highly regulated and in order to get one your business will have to meet specific requirements.
State Level Grants
While getting a small business grants directly from the government may be a bit difficult, there is one thing to keep in mind. The government does allocate a certain amount of grant money to the states to be used according to their discretion. This means that you may have better luck getting free money, small business grants by applying at state level.
It is next to impossible to get a start up grant from the government by applying directly but at state level this may be a very different story, depending on the area you are in. Rural areas tend to be much easier to obtain a small business grant in because the state is interested in building up that location. To find out more about possible grants in your area, contact your local state’s economics department.
Prepare Yourself to Apply
As kids we are all taught the importance of coming prepared. When it comes to federal grants, small businesses must have a very good business plan ready. It is important to outline every detail of your plan, no matter how insignificant the information may seem to you. The government is going to want to know precisely how the grant money will be used and they will not accept your best estimate.
In your plan you should include things like your goals for the current year as well as the future. You should make sure that the market you wish to target, all of the information about the products or services you sell, and how they can benefit the community is included in your plan. If you apply for a government grant without a very affirmative plan of action, be prepared for denial.
United States Small Business Administration – SBA Loans
Each day the Small Business Administration, which operates in hundreds of offices throughout the country helps to provide grants for small companies. If you are just starting out on your search for government grants for small businesses then this would be a wonderful starting point. One of the best things or perks associated with the SBA is that they typically have lower interest rates than many other lenders.
They also help by providing advice to individuals interested in beginning their own small business. When you think of grants you might be thinking free money that does not need to be repaid. This is not the way all grants work so it is important to be aware of that. Some grants may have to be repaid at a certain point in time and some may not.
The Type of Business You Have Matters
Another very important aspect of acquiring a government grant for your small business is exactly what sort of business you have.
As an example, if your business has something to do with bettering the environment, providing services to the community or helping children in some way, you will have a much better shot at being approved for your grant.
If you run a candy shop then perhaps your chances will be lower as you are less likely to show a way in which your store benefits your community, with the exception of creating jobs of course.
Some government grants for small businesses will only be available to people who are in a specific demographic or meet some very particular requirements. Other grants will only be available to those who can match the amount of money being requested.
For example, you may request a grant in the amount of $5000 with these types of grants, but only if you have $5000 of your own to show. In conclusion, free money government grants for small businesses do exist and they can be obtained but nowhere near as easily as many people would have you believe.
By: Bradley Barks
About Brad
Brad is our lead researcher and editor - he enjoys business, meditation, being active and always learning - his goal is to successfully help you research, find, secure, and enjoy grants and scholarships.
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