A business grant from the government can help low-income individuals fulfill the dream, to own their own business. If you have an idea for a business, don’t let it fall by the side, but find out what help is available to help you obtain your goals. You need to know how to write a business plan, decide what type of business model, and how to finance your business. There are different types of government grants to help business owners, start a business, and expansion projects. These grants, are not loans and do not have to be repaid.
For help with your business, the first place you want to look is America’s SBD! Type in your zip code to find a Small Business Development Center, near you. Once you locate a center, submit an online request for business counseling or call to make an appointment.
You will also find lots of free resources videos and workshops to help you start on a strong foundation. Much like the SBA retired business people will sit down with you and give you sound advice that will help you make informed decisions about your company.
Different Types Business Grants
Some government grants, are awarded to educational institutions, non-profits working in areas of education medical research, human services, and technology development.
This money is available to help restore communities and helps the government stimulate the economy. In other words, these grants are given to those who would be, an extension of the arm of U.S. government. Every year, Samaritan’s Purses (religious organization) receives millions of dollars in business grants from the government, because of their work in disaster relief. If you are looking business grant from the government to start a non-profit or community bases business there is money to help you get started.
To receive a business loan, you must meet certain criteria, that prove you are a viable candidate for a successful venture. If you do not qualify for a grant, there are intermediary loans, you may want to pursue. One of the most important elements to applying for a business grant from the government is patience. It is a process, and everything may not move a quickly as you want. However, you will be learning important things, that you can use throughout your lifetime.
The SBA (Small Business Association)
The SBA is a great place to start your journey. This organization was founded in 1953, and its goal is to help small businesses compete in the marketplace. They work to make sure, that a portion of government funds is set aside, for small business. The SBA site has a wealth of free information, and offers online seminars, mentoring, training business development and a women’s business center, and so much more! Retired businessmen and women are available to help you.
Before you can bet business counseling, you must have, a business plan and a copy of your tax returns.
Here are some of the other documents you will need along the way:
- Tax returns
- Business plan
- A Realistic plan for expansion
- Your business site
- Environmental studies
Here are some basic things you need to know when starting a business:
- Thinking about Starting a Business
- Create your Business Plan
- Get Business Assistance Training
- Choose your Business Structure
- Obtain a Business License and Permits
- Finance your Business
- Explore Grants, Loans, and Funding
Financing through the SBA
Two ways of getting financing are working with the SBA, who will lead you to a financial institution. You can also find a lender who is already authorized to work with the SBA to provide loans or microloans. When applying for a micro-loan, this is usually done through intermediary institutions. These lending institutions work to provide funding, where banks are less likely to give loans such as inner city or rural. These loans are offered through a group of lenders who will share in the risk.
You Need a Business Plan
A business plan is a formal statement of your business goals, why you feel it will be successful and how you will attain your goals. There is no one set way to write a business plan, the main elements should be:
- Executive summary
- Description of business
- How you will market
- How you will manage
- Expected income
- Supporting documents
Apply for a Government Business Grant Online
When applying online, there is no guarantee that your private information is safe. Caution should be taken, when using sensitive information such as social security or bank account information. The only true security you have concerning this information is if you are applying in person.
Where to Look for Small Business Grants from the Government
If you have a business, that specializes in scientific research and development, you may be able to receive a government grant under, the Small Business Innovation Research and the Small Business Technology Transfer programs. Your programs must meet the objectives set by federal Research and Development. They must also have the potential to become commercial. You can find further information at the:
- Department of Defense
- Department of Education
- Department of Agriculture
- National Department of Energy
- Department of Transportation
Planning grants, are also funded by federal dollars. This grant will is used for the planning phase of your company. This can easily be the most expensive part of forming your business, other than expansion. It will cover the cost of analysis or market and payroll and creation of your blueprinting.
To be considered for a grant your project must:
- Address long-term priorities
- Impact the whole project
- Meet the requirements of the Federal Act
- Be ready to move forward immediately and completed in 1 year
Check your state qualifications for certification requirements, before you apply, as these vary from state to state. There are certain titles you must apply under, such Woman and Minority, or Woman Owned Business, disabled woman owning a business. Go through the certification process first as this number will be required.
Business Grant Options for Minorities
The grant process for minorities is no different than any other grant. Have your paperwork in order, especially a sound business plan. Go the SBA if you do not know how to do one. Know what you want to do, and be able to explain it with clarity and passion. Here are some other resources for getting a business grant from the government.
- Prosperity Partnership
- Minority Business Development Agency
- National Minority Supply and Diversity Council
- Minority Enterprise Development Conference
- New Mexico Community Development Loan Fund
- Indian Loan Guaranty and Interest Subsidy Program
This is a lot of information to digest. Take you time and look at what applies to you and your situation. It takes time and work to start of business, but there is so much help available to support your dream. Good Luck!