With planning and perseverance, you can find grants and funding sources for your small business. Government grants for new small businesses are available. Although the federal government doesn't offer grants to start or expand a small business, researching the available government grants is worth the effort.
Avoid the grant sites with URLs that do not end with .gov. The federal and individual state government have Internet sites dedicated to assisting small business with grants, financing and sources of venture capital.
Federal Grants
Small business owners applying for a grant are asked to supply a business plan, source of other income available to the business, and personal information when using Grants.gov. Grant seekers can use the "Find Grant Opportunity" link to see the available grants. Using this website will also give the owner access to grants created by the American Recovery Act.
Businesses and Non-Profits
The federal government runs USA.gov, a website that provides information and assistance for individuals and businesses. Small business owners can find expert guidance on conducting business with the federal government, importing and exporting, tax assistance, financial assistance and help with state funding.
State Grants and Funding
Using the USA.gov link, business owners can access State Programs. When the list appears, choose your state of residence. The grants currently offered are listed.
State Grants for Certain Businesses
The government supports states with assistance to provide business grants and loans at the state and local levels. Venture capital grants are also available at the state level. Some states offer grants for childcare centers, businesses that create energy-efficient technology, and businesses that increase tourism in the state. These grants usually ask the recipient for an equal investment amount. The state government sometimes combines the grant with financing from other sources.
Additional Small Business Resources
In addition to the federal opportunities funded through the states, the U.S. Department of Commerce sponsors the MBDA, the Minority Business Development Agency. This division has links for all fifty states, where business owners can find grant and funding resources. A business does not have to be minority-held to use this site.
Small Business Administration
The U.S. Small Business Administration (SBA) provides abundant resources to businesses. The resources include small business loans, which are at reduced interest rates; training; and information on obtaining government contracts, setting up a business plan, and finding interest-free capital.
Before Applying for a Grant
Write a business plan. It does not have to be detailed, but it does need to include a plan of action for starting and maintaining the business.
When applying for a grant, gather income and debt information before starting the questionnaire.
