I heard somewhere the government has grants to help people start a new business. I want to start some stuff in the area for kids..Like a game center and dance club that is liquor and smoke free. Does anyone know how to get these loans? Getting these loans or grants isn't always easy, but it is possible, and we hope this information sends you on your way. Good luck with your idea.
Five Small Business Grant Resources
Sometimes even the best business concepts don't come to fruition due to lack of funding. Lending sources may refuse funding for multiple reasons. For example, you could have a strong business plan but can't qualify for traditional bank financing because you lack sufficient collateral. Or maybe you can't come up with a sizable down payment, or your business doesn't have a long enough track record. See How Can You Increase Your Chances of Getting a Business Loan? for more information.
Fortunately, there are grant programs available through government agencies and private organizations. Here are five of the top sources of small business grants:
1. The Small Business Administration. While the SBA does not offer grants to start or expand small businesses, it can help connect you with government resources for business grants. Visit its Federal Grant Resources page for more information [http://www.sba.gov/services/financialass...
2. Grants.gov. You can find and apply for more than 900 different grants from 26 government agencies [http://www.grants.gov/].
3. State economic development agencies. Each state has an agency that administers business grants. Agency names vary by state, but usually the Department of Commerce or Economic Development Agency is responsible for disbursing business grants. About.com has assembled a list of links to these agencies鈥?Web sites here [http://usgovinfo.about.com/library/weekl... Find out about Minority Business Loan Programs.
4. Economic Development Directory. This site hosts an extensive directory of more than 2,000 economic development agencies, consultants, and associations worldwide. Links are constantly being updated, providing access to economic development information for business people, real estate departments, consultants, and brokers.
[http://www.ecodevdirectory.com/]
5. The Foundation Center. This subscription service also offers an extensive amount of free information. It also offers a helpful online orientation to grant seeking, which will take you through the funding research process step by step. The subscription fee entitles you to access its directory of more than 80,000 grant makers. [http://fconline.fdncenter.org/]
To get a business loan, and possibly through one of the previously mentioned routes, here's Five Things You Can Do to Increase Your Chances of Getting a Business Loan:
There are a number of things you can do to improve your chances of securing a bank loan. Here are five of the most important:
1. Have a sound business plan. Having a solid business plan is your best shot at getting a loan. But it also must be a complete and well-presented plan. It's especially important to polish your executive summary. This one- to three-page summary of your business is what bankers look at first 鈥?if they like what they see, they might read on.
2. Invest your own money. Another way to improve your chances of getting a loan is to put some of your own money on the line. Lenders typically like to see that owners have at least a 25 percent equity stake in the businesses they finance.
3. Rent, don't buy. Bankers also favor businesses that plan to rent rather than purchase a building. That's because lenders prefer that you invest in assets that generate income, like inventory and equipment. Bankers also frown on high renovation costs.
4. Check out your credit report. Reviewing your own credit report before you start the application process can also put you ahead of the game. Lenders use your personal credit history to help them decide whether you're a good risk for a loan, so it pays to know what they'll find. If your report shows a mistake, contact the credit reporting agency and demand a correction. If your credit report shows legitimate late payments or bankruptcies, you should include a letter with your application explaining the circumstances and how they've changed. This can soften the impact of these black marks against you. Always be honest about your credit history 鈥?covering up problems is the fastest way to get shown the door.
5. Explore local banks. Don't assume the bigger the bank, the better your chances of getting a loan. Smaller community banks might be more inclined to finance businesses in their areas, and their loan officers are more likely to give you individual attention.
Here's an article about how to acquire a government contract:
http://www.chron.com/disp/story.mpl/busi...
Also see these articles for more information:
Classifying Types of Federal Grants: http://www.allbusiness.com/government/go...
What Lenders Look for Before Granting a Small Business Loan:
http://www.allbusiness.com/business-fina...
Bank Loans for Small Businesses:
http://www.allbusiness.com/business-fina...
Here's the Small Business Association's Financial Assistance page:
http://www.sba.gov/services/financialass...
We wish you the best of luck with your idea, especially because it involved providing for children in your community. Good luck. Government LOAN is different from Government GRANT -- and you stand a greater chance of getting a government-guaranteed loan through the Small Business Administration http://www.sba.gov/financing than a government grant. Read the SBA Financing page to learn about criteria needed for borrowing
It is hard to find grants to start a business. Unlike the myths that some perpetuate, federal government and even private foundations hardly give grant money for a for-profit business.
Nonetheless, you can go to the Catalog of Federal Domestic Assistance (CFDA) http://www.cfda.gov and Grants.gov http://www.grants.gov - these are two sites created by the federal government to provide transparency and information on grants. Browse through the listings and see if you can find any grant that would support a for-profit venture.
Even SBA does NOT give out grants. From the SBA website http://www.sba.gov/mostrequesteditems/CO...
"The U.S. Small Business Administration does not offer grants to start or expand small businesses, although it does offer a wide variety of loan programs. (See http://www.sba.gov/financing for more information) While SBA does offer some grant programs, these are generally designed to expand and enhance organizations that provide small business management, technical, or financial assistance. These grants generally support non-profit organizations, intermediary lending institutions, and state and local governments."
Here is a listing of federal grants for small businesses. See if there is any available for individuals for starting a business -- THERE'S NONE.
http://12.46.245.173/pls/portal30/CATALO...
Most of the federal grants are given to specific target groups with specific requirements (e.g. minority business owners involved in transportation related contracts emanating from DOT - Grant#20.905 Disadvantaged Business Enterprises Short Term Lending Program
Grants are also often given to non profit groups or organizations involved in training or other similar activities (grant 59.043 Women's Business Ownership Assistance that are given to those who will create women's business center that will train women entrepreneurs
I suggest you read the following books to get ideas of how to finance your business:
Financing Your Small Business http://www.amazon.com/exec/obidos/ASIN/1...
Small Business Financing: How and Where To Get It http://www.amazon.com/exec/obidos/ASIN/0...
Financing the Small Business: A Complete Guide to Obtaining Bank Loans and All Other Types of Financing http://www.amazon.com/exec/obidos/ASIN/1...
The SBA Loan Book http://www.amazon.com/exec/obidos/ASIN/1...
Angel Capital : How to Raise Early-Stage Private Equity Financing http://www.amazon.com/exec/obidos/ASIN/0...
Financing Your Small Business (Barron's Business Library Series) http://www.amazon.com/exec/obidos/ASIN/0... |
