How do you get a small business loan or grant from the government?

Answer 1

First of all, let's forget grants; the majority of grants out there are given to projects in healthcare and education; many specifically exclude for-profit businesses from the list of eligible recipients. Visit http://www.grants.gov/ and see for yourself.

Loans are a different matter altogether. Visit http://www.sba.gov/ to find out about loan guarantees by the Small Business Administration (SBA). Be aware, however, that the SBA considers itself a financier of last resort and will ask you to prove that you are unable to arrange financing without its assistance (such as letters from banks refusing you credit).

Answer 2

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

SBA will consider the following factors:

- A business plan explaining what the business is

- Your background and experience in the business -- in my experience, this is KEY in the eyes of the bank because they want to make sure that you know what you are doing and that you can make the business work. If you don't have any experience with the business, have someone on board that knows the business to give banks assurance that someone will guide you

- Your credit factors because it shows your dependability and how well you handle credit. They will do a credit check on you and poor credit history may be frowned upon, or even reason for the disapproval of your loan application

- Your collateral. Banks, even SBA guaranteed loans, want the borrower to show collateral. They want to be guaranteed that somewhere somehow they can get payment from you

- Condition or terms of loans. Banks would want to know three important things: "How much money are you requesting? What will it be used for? and For how long will it be needed?" Banks oftentimes prefer to approve loans for items that can be identified, has lasting value, and can be repossessed and sold if things fail.

Aside from banks I suggest you consider microloan providers. They typically fund up to $30K Read about the SBA Microloan Program http://www.sba.gov/financing/sbaloan/microloans.html

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."

Answer 3

Listen, there are surely ZERO offers available in the market for organizations. I do not care what internet site you cross to, or even though you cross to that offers.gov website. Any web sites you notice with supply expertise, you're going to additionally become aware of that they're VERY constrained and targeted on who will get a supply. Typically, you ought to be within the power/science/technology enterprise, you ought to already be running and making gigantic sales, and a number of different crap. Sometimes, there are techniques for Native Americans. In the top, even though someway you determined a supply that you just qualify for (you will not), you can additionally become aware of that it has a closing date, and that best one million enterprise gets the supply. It's no longer a software like meals stamps or some thing, in which so long as you qualify, you get it. You nonetheless ought to compete for it, even after qualifying. So so far as offers cross, recover from that now. The different choices are loans, and the federal government DOES NOT provide industry loans. The SBA DOES NOT provide you a mortgage. They simply promise to insure seventy five% of the mortgage, however you continue to ought to cross to a financial institution to get the mortgage. The financial institution will wish to peer well credit score historical past, a well marketing strategy, and coins from you. If you are not able to arise with $10k, a financial institution may not lend to you. Sorry, it is particularly difficult for begin-up organizations.

Answer 4

Go to HUD.gov and look up the SBA - Small business administration, they loan to small businesses and its from the feds, good program.

Answer 5

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