Are there really small business grants available from the Federal Gov?

Question

I'm planning to open a small business in my area. I am a women and a minority, I hear rumors that there is grant money available but i also hear that there is not. PLEASE HELP. Also if there is please include information or ideas on how to go about obtaining the grants. loans are NOTan option.

Answer 1

It is hard to find grants to start a business. What you hear are myths that you can get grants to start a business -- mostly perpetuated by those who want to scam the gullible.

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

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/1572484500/powerhomebizguid
Small Business Financing: How and Where To Get It http://www.amazon.com/exec/obidos/ASIN/0808007386/powerhomebizguid
Financing the Small Business: A Complete Guide to Obtaining Bank Loans and All Other Types of Financing http://www.amazon.com/exec/obidos/ASIN/1580626815/powerhomebizguid
The SBA Loan Book http://www.amazon.com/exec/obidos/ASIN/158062202X/powerhomebizguid
Angel Capital : How to Raise Early-Stage Private Equity Financing http://www.amazon.com/exec/obidos/ASIN/0471690635/powerhomebizguid
Financing Your Small Business (Barron's Business Library Series) http://www.amazon.com/exec/obidos/ASIN/0764124897/powerhomebizguid

Answer 2

I searched for small business grants when we opened our business as well. Unfortunately, I had no luck in finding any. The SBA (Small Business Association) does offer low interest loans and such, but not grants. I even called our state office to see if they knew of any. I was given a couple of numbers, but no luck on those either. The one program I did find was for agriculture business only. I know this really doesn't help, but I am just letting you know what I ran into while looking for the same. The best thing to do is search on the internet; call your state/local small business office.......Good luck

Answer 3

Here's the Gov't link for getting grants. Good luck, the grants available are so specialized that you need to have a masters degree and experience. They have the weirdest grants available. Nothing normal about them.

http://www.grants.gov/

Answer 4

Yes, the federal government does have a small business grant program. However, the criteria is so strict that no one qualifies.

Answer 5

Read the first sentence on the page.
http://www.sba.gov/expanding/grants.html
.