Cash Grants for Small Businesses

Though some marketing campaigns trying to convince you to buy their products may give the impression federal government grants are available to start a small business, there is not such a general grant program out there. Still, that does not mean there is not grant money available, if you have the right type of business. It is just a matter of knowing your niche and finding what grant programs may be offered through various agencies.

Types

1. The federal government, while not offering general programs specific to small businesses, does have a variety of grant opportunities available to all businesses, based on a competitive process. Grants are available in areas such as agriculture, housing, energy and education. Some may only be available for educational entities and most are research intensive. Still, some are available to businesses as well.

Geography

2. If your business is not eligible for federal grants, look for other opportunities. Grants are often available from state sources. Some may even be available from local governments hoping to spur economic development in their areas. When looking for grants, do not forget these possibilities. Often, a main requirement for the grant is simply to be in a specific area.

Features

3. The purpose of most of these local products is to spur economic development within an area. Sometimes the business must not only be in a certain location, but also must purchase property, or at least take out a local loan product, in conjunction with the grant. Some may also require a grant to be repaid if the company is not in the area for a certain time, making the company subject to additional liability if it can no longer operate.

Identification

4. To find these grants can be very difficult, especially compared with national grant and loan programs. Often the interest, and therefore the marketing effort, is very local. Therefore, check with your local chamber of commerce or economic development office. A local newspaper can be a good place to begin. In addition, your state economic development office may have opportunities, or point you to those communities that do.

Considerations

5. The grant award process is likely to be very competitive. Therefore, make sure you fill out the grant application as instructed and remember to promote your business through that process. Give statistics as to what your business has done or is expected to do, include details of portions of your business plan and tell what kind of need your business is there to fill.