Where can one go for a small business loan or grant?

Question

I am starting a small business in electronics retail. I would like to know if there are any agencies that give grants to new small business. Or, would you recommend simply getting a business loan?

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

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

The government does not give out grants for business. They typically give out research and educational grants. Here are some links that can provide you with some information.

Answer 4

There simply aren't grants available for this type business, unless you can find some foundation who might be willing to provide one (Ford Foundation, Bill Gates Foundation). Likely won't happen.

Answer 5

Small business administration.

Answer 6

if you are in need of an urgent loan at 2% interest rate kindly Email us on [e-mail] for your loan

Answer 7

You can go to SBA at www.sba.gov and SCORE at www.score.org for advice. Many times they can also refer you to agencies in your community who can help with funds and training.