Government grants for small businesses - what is
available?
Starting a small business and need a cash injection -
we wish you three grants (or was it 'grant you three wishes'?)
Government Grants For Starting Or Growing A Small Business by :
Abigail Franks
Despite what many people tell you, the idea that the government is
just sitting around with a pile of money waiting to give out to you or
any other small business is just plain wrong. This is not to suggest
however that no grants are available to anyone at any time.
The whole idea of a grant is to provide capital for some activity the
government wants to encourage. Typically this means in less desirable
areas or opportunities. So although there may be grants available for
things such as encouraging the arts or research into a specific
disease, unless you can fit your business into these niche areas,
there is not a lot of grant money your dream.
This isn't to say that assistance isn't available at all, just that
grants are probably a long process when and if you happen to find one
where your small business fits. There are other ways however that you
might explore to fund a small business.
Of these small business financing options, one of the most popular is
the loan. That's right, just go out and borrow the cash needed. If
you've done your homework and have a solid business plan then the
thought of self financing through your personal credit lines shouldn't
worry you. After all, you're really betting on yourself that you will
be successful.
There is a lot of confusion about the Small Business Administration.
Yes, this is the government agency dedicated to helping small
business...just not with grants. The SBA actually funds a very small
portion of the total number of small business loans that are called
SBA type loans. What the SBA actually does is "guarantee" to the bank
that the money will be paid back, either by you or as a last resort by
the SBA/government. If this sounds a lot like the Federal Housing
Administration (FHA) you are correct.
Like the FHA, the loan needs to meet their lending or "insurance
guarantee" standards. For a small business loan, it's much the same.
The SBA will look at your credit, ability to pay back the loan and the
business plan.
Other potential sources of private loans can be found based on ethnic,
religious, military service - veterans, or other sub groups of the
population. Check out all resources until you find a group willing to
finance your dream.
Finally, never give up. I personally know someone who wanted to start
a home construction business and needed funding for his first home.
The SBA was not an option, and being young, most banks just looked and
politely declined. Long story short, he ended up going to 53 different
lending institutions but he DID finally find a small, local savings
and loan willing to take a chance on the new guy. Why? Because
although he didn't have all the necessary "security" they were
impressed by the list of financial institutions he went to and was
turned down but never gave up.
About the author
Abigail Franks writes on a variety of subjects which include family,
Health, and Home. For more info on Business Grants and starting a
business visit the site at
www.4envelopes.info/how-to-start-small-business.html and
www.business-grants.primo-living.com
Source:
www.articlecube.com