Government Grants for Starting Or Growing a Small Business
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.
Abigail Franks
http://www.articlesbase.com/business-articles/government-grants-for-starting-or-growing-a-small-business-57344.html
September 12th, 2009 at 9:10 pm
Is it time for a social uprising?
We could use $7,000,000,000 to become energy independent. We could use the money in a brand new energy bill. The new energy bill would help guide a process that would pay for research and design, update infrastructure, give subsidies to renewable energy companies subsidies to farmers, and small business grants for start-up green energy contractors and the companies who would manufacture the equipment necessary for conversion. The bill would help create thousands of new small businesses which would hire millions of Americans, and help grow existing green energy companies.
I called for Obama, my candidate, to return to congress 2 1/2 weeks ago (before McCain) and it fell on def ears. Now im asking him to change his tone on the bailout bill and call for a new energy bill instead. Im right. Dont doubt it. The Question is.. are the people in Obama’s inner circle capable of thinking freely or are they focused on bailing out their own "401k’s" and other investments? Im gonna vote for Obama, because his core principles are the same as mine. His policies are for the most part innovative and progressive. But he needs to start thinking independently from his advisers. He needs to start listening to the people who matter. Me.. im as middle class as it gets. Im a sub-urban 25 year old white guy with a 2 year old daughter and a dog. Im in real estate, im losing money, I cant pay my bills, and my clients cant get credit. Im willing to sacrifice my career in order to stop this bailout.
Americans have lived off of credit for to long. We dont even remember what it’s like to save money and pay cash for our homes and cars like our parents and grandparents did. Because of our credit addiction the dollar is inflated and the price of commodities has sky-rocketed. We need to become an ownership society again, not slowly progress into a bank dependent one. After almost 100 years of living off of a credit system which creates money out of thin air, our federal government and the federal reserve (which is no more federal than fed-ex) have proven that the credit system is flawed. Promoting ownership and reverting to the old monetary system which backed our money with gold bullion is the right way to run our country and is whats best for our people.
Because of our flaws as a people. Because of our flaws as a country, this generation, the most selfish generation must step up and allow themselves to suffer. We may have to go head first into a depression, but just like the great depression we will come out a stronger, better country than we were before. Sacrifice by our forefathers is what made our country great. Whether you like it or not, whether you are able to admit it to yourself, you know as well as I do that this country has lost it’s way. How will history remember us? Its time to stand up, stop whining, and start being Americans. If it calls for social uprising we must meet it. If it calls for revolution we must revolt. If it calls for sacrifice we must suffer. Sadly, I believe from the bottom of my heart, this will never happen. Our federal government has divided, manipulated, and bribed our people for too long. The violent and non violent protests that made our people strong for over 200 years ended with a thud some time before I was born in the early 1980’s. My generation is silent, oppressed, and absorbed by digital media. We are weak, lazy, and inebriated. This may be the end of the American dream. What would the great society of the 1950’s have to say if they knew what a fat, lazy people we have become?