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.
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
Article Source: http://www.articledashboard.com