Does anyone know anything about goverment grants to open a buisness?

Question

I want to open a shop and was told there was free grant money to do so. Is this true and if so how do I find the grants?

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.

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 2

Maybe. You have to research the grant books at the library.

There is more than likely an SBA program, but you have to pay that back.

Grants, as a rule, are given out to "worthwhile" orgnaizations run by "expert" people who do things that "meet" grant requirements.

For example, I know a guy in the mountains who runs a rental shop with sleds, snowmobiles and stuff. HE also sells fishing and hutning stuff.

He had a BA degree.

He applies for and gets grants from the Department of the Interior to make water measurements of streams.

This is like a $20,000 cash grant to make these measurments to a scientific method and turn them in over a period of a year.

I know an artist who got a $20,000 cash grant to teach art at the Department of Parks in Los Angeles and two times a week or so he'd go down to the meeting room at a big park and hold art classes.

A friend of mine's sister, who has a BA, Teacher Creditial and MA in Education and taught primary school in Los Angeles and Arizona for years, now runs a resource center for kids and she applies for grants all the time to keep the place running.

A friend of mine was involved with a Theater troup in Los Angeles and they got a 1 million dollar grant from a private foundation to convert the El Portal movie theater into a live stage theater. I beleive they eventually "went under" and the theater closed.

Grants are often specific and limit what you can use them for.

Grant writing (proposals) is a high art form.

So, if you open up a coin shop, you might be able to get a grant to teach people about coins

If you open up a collectables shop, you might get a grant to teach people the ins and outs of collecting and what makes for a good collectable item.

Then you hold these programs at your shop once or twice a week.

You may not be allowed to buy merchandise with these grants, but they might let you pay part of the rent on the shop or part of the utilties and certainly yourself for labor.

If you co-mingle funds and they audit you and find out you bought items for the store, you could be guilty of felony fraud, so you have to be real careful, read the grant requirements and keep funds separated in case you get audited, which is rare.

Answer 3

I was a grant-writer for awhile for people like yourself! Obtaining a grant is a lengthy process. Not only do you have to find grants you can qualify for, but you have to have a solid business plan in place before you will be considered. The applications are very lengthy and many require references, previous work experience, forecasts of how many people you will employ, tax info, etc. It's a lot of hard work and it seems daunting, but if you're serious about it eventually you'll be able to find a grant. Keep in mind, most don't cover your entire business start-up, though.

Answer 4

I've been around a long time, and heard people talking about grants for a long time now. Never have I heard anyone say they got a grant, nor have I actually heard of anyone giving "free" grants except years ago I got a small grant for school by some local organization.

The SBA provides loans but they are loans against your mortgage only.

Answer 5

I have never obtained a grant from the government but have been searching for information about them also.
Below are some sites that I have been checking out in order to get a better feel of exactly what is expected and necessary to get a grant from the government. Good Luck I hope this info helps you.

Answer 6

There is no such thing...lots of BS but FACT is:

1. Best start and finish a business plan and have it reviewed and corrected by CORE, an agency with ex-CEO's and businessmen who will tell you if the plan is lacking anything.

2. Mathhew Lesko is a fraud. I have read and gone over several books with people who bought his books hoping for an easy way to get money for a business.
THERE IS NO EASY WAY short of an Angel Investor and even they want lengthy, detailed business plans.

3.Government grants to help fund businesses are 99% awarded to agencies who make certain amounts available to those who go through their program and jump through their hoops. These agencies are usually "non-profit", (licensed with a 501c3), community or state-based institutions. Most are called,
"Micro-Loan" agencies.

Start small...in a Kiosk or even fairs, outdoor markets, swap meets. Do this for a year and keep excellent books on how much you made, customer base, time of year and start-up income. This gives you a track record and will accrue valuable data to write a better business plan to expand your business.

It will not be easy no matter how you decide to do it but if you are committed and love it......then it can succeed.

You don't need luck.....just hard work and be realistic.

Answer 7

Your best bet is to make an appointment with your local Small Business Administration office. There, you will find free asssistance with everything from what type of business to form (sole proprietor, LLC, Corp., etc.), how to write a business plan to get financing and how to find a mentor or other free assistance. Grants are very difficult to get, but to qualify, you will have to do your homework and present a workable business plan. Here's a link: http://www.sba.gov/

Answer 8

It costs money, but I am using Grant Seeker Pro and even though it is a long process it is going swimmingly. You just can't give up. You must keep submitting your proposals to the grants you are eligible for and eventually you will get them. A friend of mine got a grant to open his business. It took almost a year to get his money. Good luck.

Answer 9

You may want to try Matthew Lesko's books or try the SMall Business Administration. There are many resources from them besides grants. They can give advice and help with the legalities of setting up businesses (i.e. should you be a LLC or Inc?) as well as practical steps to take to ensure success.

Answer 10

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Answer 11

You must submit a grant request in writing , however they're very complex. many services offer to write it for you at a cost of $1k or higher and even then theres no guarantee youll get it.

We all see that silly idiot guy with the ? mark suit on tv screaming
" my new book shows you hot to get $ for anything" .. he is a real rip off, he sell a book with addresess which can all be located online. then, his office sales people start calling you -every day- with pressure to let them write the grant for you at $2000 + and they still dont gurantee you get it..

get the papers look them over and decide if you can handle it yourself ...? some people do.