Does anyone know how to apply for a grant to open a small business?

Question

I have went online to investigate obtaining a federal grant to help me get a grant (write a proposal, and to apply), but all I get is that I have to have a 'bank account'. Surely there is a way around this...If I had the money to start my business, I don't think I should have to pay some company to do this. Any information out there?

Answer 1

You stand a greater chance of getting a government-guaranteed loan through the Small Business Administration http://www.sba.gov/financing than a government grant. Read the SBA Financing page to learn about criteria needed for borrowing

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 SBA does NOT give out grants. From the SBA website http://www.sba.gov/mostrequesteditems/CON_FAQ2.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

For private grants, you may want to check the Foundation Center's Foundation Grants for Individuals Online http://gtionline.fdncenter.org . 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

Ok first off, there are very few start up grants. The world believes if you don't have the drive to save a few pennies then why should we invest in you.
A bank account. First, how do you believe you will have a small business with out a bank account. Having one, keeping it, and not having NSF (bounced checks) is part of adult hood. If you have no income at all, OK I understand why you don't have a bank account.
First steps first.
Get a job. At least a part time job. open a bank account. Don't bounce checks.
Next, investigate small business incubators in your town.
web search, small business incubator small town USA
They are masters at helping people and it is typically grant funded so while they don't write you a check, they provide technical assistance for free, this is a Technical assistance grant.

They can help to steer you in the right directions, by helping with a business plan and understanding what your steps will be.

Good Luck!
PS People will gladly take your money. I am telling you something I am sure you don't like but it is true.
You decide, pay to hear what you want
or listen to the truth and pay nothing.

Answer 3

If you have Microsoft Works or Microsoft Word - there's a place in that program that has application's & what not already made out -you just fill in the blanks- or just make one from the Word Processor. Also try putting in your search browser: "writing a formal business plan" - and see what you come up with. You sound smart - you'll think of something. If you had to - you might be able to pay a small fee & have like a Notary Republic to help you, or a Lawyer. Good luck to you.

Answer 4

Don't believe the hype. all of the monies for small businesses that the government gives out goes to the sba. unless your business is a non profit org there is no grant for you.