Government grants for small business

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hundreds of grants for small business owners go unused every year

What are Free Government grants for small business? 

Government grants for small business are free monetary assistance meant to help fund specific business initiatives.

Everyone has business ideas and dreams of starting up something of his/her own. The primary requirement is money.

Government grant is free money unlike loans that need to be repaid.

This article serves as a quick guide into the world of government grants for small businesses. The types and amount of financial
assistance the government grants to small business owners depends on each state and county. 

The first step is to check out state government websites to find gov grants for starting a small biz.

State government grants help to get low-interest loans and venture capital financing from
commercial lenders. A comment in an SBA newsletter on a very recent Bill (American Recovery and Reinvestment Law) passed into law by President Obama says:

The bill authorizes SBA to establish a secondary market for pools of “first lien” loans under the 504 program. These “First Lien” loans from commercial lenders currently have no SBA guarantee. The bill authorizes SBA to deploy federal guarantees for pools of these first lien loans, so that they can be sold to investors in a secondary market. Providing liquidity for these first mortgages will help encourage lenders to continue participating in SBA’s loan program, which provides a key source of capital for community development and other projects.

The bill also empowers SBA to set up a Secondary Market Lending Authority that would make direct loans to broker-dealers that participated in the secondary market for SBA-guaranteed 7(a) loans. These broker-dealers would use the funds to purchase SBA-backed loans from commercial lenders, assemble them into pools and sell them to investors in the secondary loan market. This program may help address some of the issues facing the secondary market for SBA loans and may ultimately help SBA lenders make new loans to borrowers.

Basically, this means that the government is going to help you get a business loan from a private investor.

You can boost your business with a Federal government grants for small biz if it is a non-commercial and non-profit venture.

However, grants for starting a biz are provided through Small Business Administration (SBA) an independent agency for aiding, assisting and protecting the interests of small businesses.

How to receive government grants for small business
is the obvious next question in the entrepreneur’s mind.

Receiving free government grants is important for small business owners.

In order to ensure government funding for your project, make sure you:
  • Have a business plan. Revise it, rewrite it, make it as perfect as you can so that when you approach the government for a grant, you know exactly what the grant is for.
  • It is important to do research on state government grants  for small biz. Government websites offer the necessary information. Make sure you are reading an official government site by ensuring the site ends in .gov not .com or .net.
  • Most often, free gov grants for small business are given to non-profit ventures, where the community is benefited or some jobs are generated by the venture.  Talk with a business coach about ways to include this important in your business plan. 
  • Writing or filling out the grant application form is the most important part to receive the government grants for small business. Read the form thoroughly before filling it out. Most often the forms are lengthy and require a lot of detailed information to be provided by the applicant. 
  • Remember that getting a government grant is not a simple process! A lot of documentation needs to be approved and verified to ensure that the applicant (which is you) is qualified to receive the government grants for small business. Though this is a laborious and time-consuming process, getting the free grants for your dream is worth the trouble.  
Many illegal and fraudulent individuals/agencies claim to give free money and cheat the gullible applicant.

A few
things to remember before applying for government grants for small businesses are:
  • Never disclose personal or confidential information such as bank account information or other financial details.
  • Do not pay any money for a government grant because they are absolutely “free”. The names of authentic agencies and foundations that award grants are available on various websites and in any public library.
  • Check the Internet or telephone directory to verify whether the government agency is authentic.
  • Do not fall prey to telemarketing agencies which promise government grants for small businesses.
  • File a complaint if conned by false or illegal agencies.

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