The Availability Of Small Business Grants

Tuesday, February 23rd, 2010 at 3:50 pm

Grants are issued by both Government agencies and private foundations or organizations. They are often preferred to loans as they are ‘free money’ that does not need to be repaid, although the money must be used for a certain purpose and the keeping of detailed records of its use are likely to be necessary.

The Federal Government has a large database pertaining to all of the grants it issues that can be searched on freely by members of the public. Unfortunately you will find no grants there for starting a business or for monies to cover operating expenses, despite what late night commercials or many websites might tell you. The Government does issue many thousands of grants worth billions of dollars but these are typically only given to non profit organizations as well as educational entities and state and local government agencies. Small businesses are only going to see Federal money if they are high tech firms and enter one of the two small business technology programs.

State or local government business grants are more likely to be available for small businesses depending on where they are located. Grant monies passed from Federal Government to state and local agencies trickles down to such businesses in the form of economic development aid. The grants available will depend on the initiatives local Government is trying to promote, such as child care or tourism. Private foundations make many grants but mainly to non profit organisations.

To find free government grant money or private funding suitable for your business and its needs, the best place to start is with the Small Business Loans & Grants Search tool at http://search.business.gov/startLoans.html. Here you input your basic details and requirements and it lists relevant options for you including loans, venture capital and grants. To find state or local government grants you will need to visit the respective website(s) for your area.

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