Grants And Loans?

Question

i new to the grants and loans thing...i'm starting a studio and what not, do you think it would be easy to get a grant or loan for 30,000 easy? this probably is a dumb question but i don't know about this side of business thats why i'm asking

Answer 1

Some banks extend what they call "small business lines of credit" often through credit cards. Those are easier to get and can be based on your credit history alone. They typically are up to $100,000.

For example, Wachovia's has various business lines of credits http://www.wachovia.com/small_biz/page/0,,446_612_1399,00.html Their business line of credit can even be approved overnight,

However, if you're applying for a loan and if it is a big amount, banks and even the SBA may consider other factors aside from your business credit:

- 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 and you can find SBA Accredited Microloan Providers here http://www.powerhomebiz.com/vol145/microloanproviders.htm

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.

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 2

No such thing as a grant for that type of business. Grants are for non profits and cutting edge technology research etc. Not worth all the trouble for an SBA loan. For the small amount of money you need try a local bank, or go online to find a commercial lease company who will finance the truck and equipment. As for start up expenses, unless you can qualify for a small operating line of credit, I'm afraid these will be out of pocket. You should start saving now. Despite what you may read on the internet there is NO FREE LUNCH FOR SMALL BUSINESS.

Answer 3

you will be needing a personal loan for a studio. only if you are attending an actual school would you be able to get a student loan. call a local bank for assistance.

Answer 4

The best place is to start with the Small Business Administration and SCORE. Both have valuable resources to help you start your business. The people with SCORE are retired business executives and can give valuable knowledge to help you with your business.

Answer 5

The government does provide interest-free loans for businesses as well as grants. go to grants.gov