Business Federal Grants

What Are The Types Of Grants For Business From Federal Government

If you are searching for federal business grants, the process itself can seem like a daunting one.  You may not fully understand the eligibility requirements for a federal grant, but you probably want to learn who exactly is eligible. After all, not everyone has the money for a vast amount of inventory to start up a store or restaurant.

 The United States Department of Health and Human Services helps to manage a website called "Grants.gov" that is basically a source of not only information about grants for small businesses, but a place to apply for them as well.  Of course, there are strict eligibility requirements in order to qualify for a grant.  Not everyone can be eligible for this process, so it is important to make sure that you qualify before wasting the time and effort to apply.  If you are in the process of starting a small business, time is valuable.

One of the biggest things to realize about federal business grants is that they are not offered to individuals.  There are specific types of organizations which are eligible for these types of grants, but you cannot get such grants to open up a small business, such as a restaurant or some sort of retail store.  These grants are mainly reserved for eligible local governments in need of money, schools, public housing organizations, and some charitable organizations.

Though this may seem disappointing to you if you are trying to begin a small business, you need to understand that the federal government cannot afford to constantly give away money in the form of grants to people wanting to open small businesses.  One of the best ways to get money to start up a small business is with a loan.  Of course, you will need to pay back any loan you get, but it is a good way to get money for the many expenses needed to start a business.

Your business plan should be solid before even beginning to think about applying for a loan.  You should have a business plan outlined on paper, listing your goals and how you plan to achieve them.  Also, you should have your start-up expenses written down and outlined on paper as well.  This all may sound corny, but anyone in charge of approving a loan is going to want to see that you are serious about your business.  No one wants to lend money to a business which is disorganized and seems destined for failure.  Loan officials at banks are extremely interested in only approving loans for businesses which are likely to be profitable.  If a business is not doing well financially, the chances of the business owner making timely loan payments decrease.

Any organization which is eligible for a grant from the federal government typically needs to show the officials in charge of approving grants that there is a major financial need.  Organizations that request grants often need such money to pay for basic expenses due to a financial crisis they may be having.  Some local governments apply for such grants as a way to pay for expenses after they have been affected by a natural disaster, such as a flood or tornado.

By Greggy Rick Go, published at 07/12/2011
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