When beginning your search for a small business grant to get your business up and running be sure to focus your search on state agencies. The federal government offers no grants for small businesses at this time. Many state development agencies offer grants to persons looking to put their ideas for a small business into action or looking to expand an existing business. While offering no grants for small businesses, the federal government does offer loans for starting a business.
There are many websites, state government and private, which offer data bases by state to point you in the right direction toward your loan. The federal government does offer services, at no cost, which can be very helpful with developing a business plan and strategies prior to approaching a state agency with a request for a grant. The federal government offers loans for businesses through the Small Business Administration (SBA). The SBA does have a grant program mainly reserved for not-for-profit organizations, intermediary lending institutions and state and local government agencies which aid to enhance and expand technical as well as financial assistance.
Many mistakenly believe small business grants to be a source of free money to be used as one wishes. Although a business grant need not be paid back, there are rules and regulations governing how the money can be used. A business grant can be compared to a college scholarship. The money is provided with no expectation of repayment but must be spent for its’ intended purpose.
If you are flexible as to where you intend to start a small business, businesses starting up in rural areas tend to have better success in obtaining grants. Smaller areas tend to offer more resources particularly if the proposed business offers employment opportunities to local residents. If you can ensure the rural community that you intend to stay in their area for an extended period of time, a number of tax breaks may also be offered to you.
