Business Start Up Grants – Free Money?
Business start up grants are offered by private institutions and government agencies. This means that they will give you money without charging interest and sometimes without expecting you to pay it back. However, it is not that easy to get these grants. If these institutions show an interest in your project then only will they give you the grant. Simply having a good idea will not automatically mean that you will be given the grant.
Most funding institutions provide grants mostly for “project” context, consistent with their organization’s objectives and goals. The myth of “free money” granted for starting or expanding any sort of small business needs to be shattered. They do not provide grants to individuals who might use the money to start only a profit driven small business for themselves.
Conditions relating to income or credit:
Usually you don’t have to pay back the government grants. Some States require no qualifications for receiving the grant but this is not always the case. You may not have to be qualified the same way that people applying for loan (national as well as private) have to qualify but there is a process for requirement, which you have to pass through in order to get the grant.
Now you must be wondering about the qualifications that a person should possess in order to get small business startup grants from the government. The main thing you have to prove is, the business idea that you have in mind is feasible. In order to prove that your plan is feasible, you must show that you are trustworthy, which indirectly means that your credit score must be good. Also, your business must be independently owned and operated, not dominant in its field or employs 500 full-time people or less
Present a feasible business plan:
Before you go and apply for a business start up grant, you will have to make a good presentation of the project, which you want to undertake. So you will have to put your idea in to a proper presentation. You should do some research along with the study of market in order to show that your business proposal is feasible and that it can earn sufficient amount of money.
You submit a business loan application to the small business lender for initial review. If the lender approves of your plan, a copy of the business loan application and a credit analysis are forwarded to the Small Business Administration.
Although you do not have to pay back the money to the government but the institution would like to invest in those businesses that have the ability to survive with time. These businesses should have the capability to generate work and increase the income of the country, which in turn will add to the country’s wellbeing. In order to know the necessities required for obtaining small business startup grants, you will have to talk to the government agency that offers such grants.
Sanction of government grant:
If you want to obtain small business start up grants then you will have to show the agency that your project is good and feasible. Moreover, the business proposal should be of that category that the government supports and promotes. You won’t be able to do anything if you are not eligible for the government grant.
Such are only available to support non-profit organizations, lending institutions, and state and local government programs that provide technical and financial assistance to small businesses.
Grant opportunities may exist for small businesses engaged in very specialized activities. Many organizations provide job training grants to new and expanding firms.
So many people want to establish their own business but they are unable to because they don’t know how they will get the money for it. It is not the end of the world if you cannot fulfill the requirements required for obtaining small business start up grants.
These include land acquisitions, and projects whose primary purpose would be to increase production. A small business does not receive more than one loan in a three year period. There are government business loans, which you can apply for. The interest charged on these loans is usually low you can pay them back easily. In conclusion, getting business start up grants from the government is not possible for everyone. However, if your business qualifies for one, its a great source of free money.