You have an idea and you are looking for small business grants money to start or expand your business. Are grants for business for you? Can they help you launch your business?
First of all, there are almost no direct government grants for small business anymore. The only program still available is the SIBR. This government grants for small businesses program can be available for you if you need to do research and development for an existing or new product or service. The Federal government, through the SBA (Small business Agency), can give money directly to fund those type of R&D activities.
The other type of financing available is indirect grants for small business. They are referred to as indirect since the money given away does not go directly into your pockets. The trick is that this type of government business grant program usually comes in the form of subsidized loans or loan guarantees. In the case of a subsidize business loan, the government will pay part of your loan and therefore you can receive a lower interest rate compared to the rate you would get from a bank. In these cases, the loan is still offered by a bank but an agreement has been made by the government in order to offer you a reduced interest rate.
In other cases, a grant for business can also come in the form of a loan guarantee. The government can guarantee your business loan and if are unable to make a payment the government will make your loan payment(s) for you.
Also, searching your county, city or state commerce agency may bring unexpected sources of funding (grants included). For example, many agencies will provide lower, deferred or even tax exemptions. Some others will help you pay for your employees training, or help pay for the latest tool and machinery.
In all cases applying for a grant for small businesses or a business loan will require a complete business plan, or update your existing one.
Where can you find grants for business?
First, go to your local SBA office or visit their official site. You can also check with your state business administration or economic development agency in order to find out if they are offering financial assistance to business. In most big cities, there are also city programs to help launch specific types of business. Remember than women and minorities are encouraged to launch their own businesses with specific targeted grants programs. The amount of money you can receive will depend on the programs you apply to, the amount needed, your business financial statements, and if or how your project will contribute to the local economy (whether its in terms of new jobs created, new business location, etc).
As a last note, be aware of companies telling you that you are 100% sure of receiving a grant. Unless they can tell you the eligibility requirements for the grant you are looking for, you should be precautious. You can always verify the requirements for grants yourself, determine if you are eligible and request the help of a company if required. This way you wont have to take their word for it.