how do I get a Legit grant for a small business?

Question

I am a single mother and was wondering how I can find out about legitimate grants for starting a small business.

Answer 1

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."

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 would begin with the SBA (Small Business Administration) web page. You should never pay someone to get you a grant since they are free if you qualify. You might also search "grants" and see what comes up.

The more knowledge of the business world and the particular business you have the better the chance of getting a grant.

Answer 3

The best place to research any grants or loans available to small business is the Small Business Association. They have lots of great information on their website.

Answer 4

S'pore government is not so lenient in giving out grants for start ups. You will need to have a good business plan to present and additionally, the government will require you to get a 3rd party or company to invest into your company/business before they put in equivalent amount as grants for you.

Answer 5

I was in your shoes when I started my business, and frankly there is very a slim chance of finding anyone that will give you a grant. I recommend you get a loan. From your bank, and there's a place where individuals like yourself who needs money ask other individuals for a loan. Individuals like you and I with money to lend. Check out this site www.prosper.com

Answer 6

The only federal grants these days are for innovation (www.sbirworld.com). Your best bet would be to try foundations (like the Ford Foundation).

Answer 7

Try the following websites I've listed as sources.