Government Grant Money for Small Business


For those entrepreneurs that are looking to start a small business or have already started their business, one of the most pressing problems is having enough capital to grow. Small businesses are extremely tough to launch and having enough capital can make the difference between success and failure. For those entrepreneurs that desperately require capital, there are several ways to acquire it, one of them being government grant money for small businesses.

It should be noted that grants are very different from loans. Loans are financing that an entity must repay, however grants usually do not have to be repaid, they are considered free money. While loans are usually difficult to secure in their own right, grants can be extremely difficult to acquire usually due to the criteria that the private or public institution or organization has set up.

For those looking for government grant money for their small business, the one place you won’t find it is at the federal government level. Currently, the federal government does not offer any small business grants, however there are many public and private institutions and organizations that do. Your best bet to find a grant is at the state and local government level and to scour the many small business organizations including the SBA (Small Business Association) along with other organizations set up to fund small business start ups and growth.

Practically all states have a government grant program that give money to small businesses that fit specific criteria. Usually the criteria entails what type of business is being created and who it will serve. Other criteria can include the race and gender of the entrepreneur and other traits as well. Many government grants for small businesses require entrepreneurs to complete lengthy applications and submit business plans. Since grant money is in limited supply, most organizations want to make sure that the money that is lent is lent to a business is well organized and has a plan of action. Usually a business plan along with other details will need to be submitted by the entrepreneur.

For the vast majority of entrepreneurs seeking a grant, you will probably not qualify, however since grants are loans that do not need to be repaid, they are well worth the effort. One of the keys to improving your chances of qualifying for a grant is to be aware of the wide range of grants available. Usually most grants fall into certain niches, and while most businesses don’t fit the criteria, some businesses with a little time, effort and luck find grants that do. There are plenty of web sites and publications available that can help you become aware of the grants available in your state or through a wide variety of organizations.

For those seeking government grant money for small businesses, the key is to keep with it, it will probably take some time to find a grant that you can qualify for, however once qualified, grants can be a great tool to grow or launch your small business.

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