Where can I get a loan or grant to help set up our new design studio?

Question

I am about to become unemployed when the company I work for shuts at the end of the month. My artner and I have been setting up a successful design business that creates illustrations and 3D designs for game, multimedia etc.

I estimate it'll take 3 months to start making money but I have a morgage I still need to pay so are there any govenment loans or grants I can apply for to help me while I set up the new business?

Answer 1

If you are in the US, 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

Grants are incredibly few and far between and probably take longer then 3 months to set up anyway so not really a starter (sorry only in mho). Loans may be feasible, easier if you are in a regeneration zone so check where you are setting up, a few miles one way and you could get it a few miles the other not!

Practically, speak with busines advisers, mostly free advice, via business link or nfea (enterprise agencies, link below). They can help offer solutions, also get a business plan (business adviser can help), that will show forecast sales etc and may influence the bank to loan you money to tide you over (or even just an overdraft). Good luck

Answer 3

Almost anyone with the money can loan it, the questions are what are you willing to do to get it and how long you're willing put up being in debt to pay it off. I'm sure you can find out more info on government money you can use to help you somewhere. Maybe on workforce sites for you area. If none of that works see about being hired to do work for the government, a lotta politicans are gonna be throwing in their towel over the upcoming presidential elections and the internet seems to be the new fighting arena. Working for someone with clout can do wonders to your resume .

Answer 4

Visit your bank and ask about the small business start up scheme

Answer 5

a company called do somethin 4 the people can help you with that..there email is [e-mail]

Answer 6

try your local business link, the DTI and the economic development agency. you will find them all on the web.

Answer 7

have you tried the business shop. they give grants (non repayable) to new business ;)

Answer 8

try the gov. if that doesn't work banks always have money.