How to get loan, even grants to start out small business to manufacture small things?

Question

Do I have to have good credit to do that. I heard goverment helps small businesses. I dont have any collateral I rent and make payments on my car right now.
Thank u

Answer 1

to find out information about starting a new business, go to the small business administration website at http://www.sba.gov - they even have a section on loans.

To search for grants, go to http://www.grants.gov - the free U.S. government website to search for grants.

Answer 2

that is ordinary to construct the production unit. The difficult section is promoting the product. the merely excellent plan is to promote photo voltaic panels made by using somebody else (as a distributor). Then, once your sales exceed $5 million in accordance to 365 days or so, you'll get investors to assist purchase an offshore production unit in (say) China. Banks do not make unsecured loans for beginning a organisation. you want both a house fairness personal loan, or an investor. An investor will cost the corporation at a distinctive of annual sales (the precise distinctive relies upon for sale). she will take a percentage possession stake in substitute for the funding. celebration: Annual sales = $5 million. cost of corporation = 3 x 5 = $15 million percentage fairness to the investor = 40 9% quantity invested = 0.40 9*15 = $7.4 million.

Answer 3

Unfortunately, collateral and yes, money, are needed to apply for a government loan. From the SBA Eligibility & Preparation Credit Factors http://www.sba.gov/financing/preparation/qualify.html , the applicant needs to have collateral and equity investment as the SBA will not give you 100% loan. They want you to be invested in your business as well.

Forget about grants. 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. And yes, grants mean PAPERWORK - lots and lots of it, that is why a cottage industry of grant writers was born.

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 if you buy books on "how to get grants" or list that supposedly has information on grants -- all of them are mere rehash of what CFDA has, albeit packaged differently. But still the info is the same - hardly any grants for starting a for profit business.

Even SBA does NOT give out grants. From the SBA website http://www.sba.gov/expanding/grants.html...

"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/CATALOG.BROWSE_BENEF_RPT.show

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

For private grants, you may want to check the Foundation Center's Foundation Grants for Individuals Online. It's a subscription based website ($9.95 per month) but their opening blurb only says that the database is ideal for "students, artists, academic researchers, libraries and financial aid offices." Entrepreneurs are apparently not one of them, so I take it they also don't have listings of private foundations who give grants to would-be entrepreneurs.

Answer 4

You can get a loan in your situation. It is NOT easy. You will need to go through SBA, they do not lend, they only back loans. They will guide you through your business plan, which is the most important part of getting a loan. It will take you near forever to write, but after you are done you will take it to a bank for them to critisize you and have you do it again, and again.

Do not get discouraged!!! It does feel impossible, but others are able to do it and so can you. Here's a few places to get you started.