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What Is A Small Business Grant and How To Get One

For an entrepreneur wanting to start a business or an existing company wishing to expand, there are small business grants available. A small business grant is money that does not have to be repaid and is given to those that do not have much capital and are short on money, but have high aspirations towards their potential or existing business.

A common misconception is that the best way to acquire a small business grant is through the federal government when in fact the federal government does not currently have any grant programs for small businesses. While the federal government does issue guaranteed small business loans with low interest rates, federal grants are only issued to organizations that are non-commercial and educational institutions; they are thereby not applicable for any small businesses.

So, where would a small business search out these grants? The best place to start is with the state in which the business is or will be located. As a first step, make a stop to your state’s economic development office to find out what is available. It may be quite time consuming to find a small business grant and to review all of the requirements to verify that you meet them, but this will give you an idea of what is available within your state. Your state development office is there to help residents with hopes that starting or expanding on a business will create more jobs within the state.

Another option would be to search out foundation grants. These are grants that are issued through non-profit companies and charitable organizations. They are difficult to obtain but if you spend time developing a good business plan, you will greatly improve you chances. Make sure that your business plan will justify your reasons for needing a grant along with convincing the organization that your business will be a successful one. A business plan writer is highly recommended to set up your written business plan; they have the experience needed in order to set your business up in a presentable way.

You local library database offers free information on how to search out and apply for applicable grants. Also research grants through search engines on the internet, but be weary of websites claiming to offer federal small business grants. Take the time to research each grant out and apply for any and all in which you meet the criteria.