Do anyone know how to get a grant to start a business?

Question

I am trying to open up a daycare. But I don't want to get a loan. just in case the business fails. Do anyone know where I can get a grant?

Answer 1

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.

The only grant for daycares available is Grant #10.558 Child and Adult Care Food Program -- and it is NOT for helping individuals start their own daycare businesses http://12.46.245.173/pls/portal30/CATALOG.SEARCH_PGM_TXT_DYN.SHOW?p_arg_names=prog_nbr_in&p_arg_values=10.558&p_arg_names=keyword_in&p_arg_values=DAYCARE&p_arg_names=_title&p_arg_values= and the objective is

"To assist States, through grants-in-aid and other means, to initiate and maintain nonprofit food service programs for children, elderly or impaired adults in nonresidential day care facilities and children in emergency shelters."

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.

With regards to starting a daycare, the first step is to prepare a business plan. Even if you will not be applying for a bank loan, a business plan helps you to think through your business - what it needs, who it will benefit, how much it will cost, and what is its potential. Here are free business plans on childcare business that you may want to look into:

http://www.sba.gov/library/pubs/mp-30.doc
http://www.misbtdc.org/documents/BPWORKBK.pdf
http://www.misbtdc.org/documents/CDCPLAN.pdf
http://sbdcnet.utsa.edu/sbic/bplans.htm

You may want to read the free article "How To Start Your Own Day Care Center" http://www.powerhomebiz.com/vol40/daycare.htm It covers various aspects of starting and running a daycare center including the demand for daycare centers, how to start this business, shoestring strategies, how to operate a daycare center, tips on caring for the children, income potential, how to manage your daycare, marketing your business and other additional income potential. There are so many things to learn about the business that the first step is to read everything you can find.

Other articles you may want to read:

Starting a Child Day Care Business http://www.libsci.sc.edu/BOB/class/clis748/Studentwebguides/ss02/pollack2.htm
Childcare.net http://childcare.net/indexnew.shtml
Starting a child-care services business http://www.entrepreneur.com/article/0,4621,290241,00.html
HOW TO START A QUALITY CHILD CARE BUSINESS http://www.sba.gov/library/pubs/mp-29.pdf

For in-depth information, I suggest checking out the following books:

- Start and Run a Profitable Home Day Care
- The Daycare Provider's Workbook
- Start Your Own At-Home Child Care Business
- So You Want to Open a Profitable Child Care Center :
Everything You Need to Know to Plan, Organize and Implement a Successful Program

It is also important that you learn the tax rules affecting daycare centers, especially if you are going to open one from your home. Here is the IRS page on child care centers: http://www.irs.gov/businesses/small/industries/content/0,,id=99878,00.html

As for the licenses and requirements in your state, the Administration for Children and Families provide a state by state listing of contacts for licensing and regulations governing child care businesses:
http://www.nccic.org/statedata/dirs/regoffic.html

Answer 2

imisidro has great grant information -- she's the #1 Answerer in the Business & Finance section.

As far as opening a daycare...

The best routes to take are to research the process of starting a business as well as the industry you're interested in.

I recommend checking out the SBA, Entrepreneur, The Start Up Journal & Nolo. All 4 are great informational resources for the new/small business owner. I posted links for you in the source box.

Associations may be a good avenue to explore. These organizations will address many of the thoughts, questions and concerns you'll inevitably have as well as many you haven't anticipated yet. See the source box for some relevant links.

Research, research, research – this cannot be stressed enough. Read as much as you can about the industry. Here are some book titles that are relevant:

* Start & Run a Home Daycare by Catherine M. Pruissen
* Starting a Child Care Center: The Indispensable Guidebook for Starting a Day Care or Child Care Business by Millicent Gray Lownes-Jackson,
* Opening & Operating A Successful Child Care Center by Dorothy June Sciarra
* The Business of Child Care: Management and Financial Strategies by Gail H Jack

There are plenty of free informational resources out there. Check the source box for links to articles.

Hope that helps! I wish you much success & happiness in all your ventures!

Answer 3

Please read this before you waste your hard-earned money!
I really do sincerely wish you the best of luck, but do you realize that 85% of businesses fail in their first, and most critical, year?

I can show you how to run a multi-million-dollar business out of your home with no inventory, no overhead and no employees... where else can you find that kind of freedom? Then, you can afford to bless parents by running a home daycare and only charge the parents for food... how awesome would that be?

Please contact me: [e-mail]

Answer 4

Im sorry no. Maybe try your local recruiter or some officers you know. They will have plenty of information about what your interested in, although i have never heard of this grant.... another reason for me to sign up!!!

Answer 5

Go to www.grants.gov. The federal government has programs for daycare providors.

Answer 6

You can't. There is no such thing as a grant for a for-profit business.