Business grants were originally created by federal and local governments to provide financial assistance to entrepreneurs and business owners. The goal was and still is to help stimulate the national and local economy, and to help fund research that will help a certain industry. In more recent years, non-profit organizations and major corporations began to give out business grants. They had similar goals, but also found that giving away grant money is great for public relations and is a great tax write-off. For nearly 100 years now, business grants have helped thousands of individuals across the country either start or expand an existing business. Some business grants have even provided free tools and services (software, hardware, consulting, coaching, etc) to underrepresented minorities and disadvantaged women who want to start businesses. Many are concerned though that a bad economy might lead to the end of business grants. They reason that companies will no longer be able to afford to give money away, and that government agencies will reallocate funds to more needy issues. That reasoning, however, is mostly false. The good thing about business grants is that, unlike business loans, they will never go out of style. Remember that business loans are given by greedy companies looking to make a profit. Business grants, on the other hand, are given as charitable gifts. Their availability is not as dependent on the economy, and because they never have to be repaid – they don’t and never did pose any risk to the grantor. Even more, business grants are great tax write-offs for major corporations – even if they are doing bad financially. Granted, some companies will reduce the amount of grants that they give out – but they generally won’t terminate the program completely. Government agencies too may reallocate some of the funds that normally were for business grants, but their business grant programs will always exist. This is because local and federal government officials realize that small businesses drive the economy and create jobs. They would dare not destroy programs that can help small businesses thrive – especially during a recession. Therefore, don’t give up in your search for the business grant that is right for you. They are still out there, and many entrepreneurs are receiving such assistance every single year. To find relevant opportunities, remember to check the web sites of all major companies and smaller companies. You also want to check with your local city, county, and state government offices.
Posts Tagged ‘Grant Programs’
Why Business Grants Will Never Go Out of Style
December 18th, 2009Business Grants in the UK
December 18th, 2009Many people, all over the world in fact, face the problem of trying to start a business. It is a classic dilemma: you have an idea to make money, but you need money in order to start the business. It’s a classic “Catch-22″ scenario. So, that is where a government business grant can come into play. As it happens, the United Kingdom is one of the very best places on Earth to either start or expand a small company.
The good news about business grants from the government is that there are lots of them out there. The bad news: you have to seek them out and apply; they do not come looking for you. There are close to two dozen different business grants in the UK. So, let’s look at just a few of them. First, there’s the direct grant, where a program will give you some funds to pay part of the costs for training, product development etc. Now, that’s a key point: part of the costs. It’s rare for a grant to completely cover the costs of some aspect of your business, but it will at least cover a portion.
Then there are grants that are much like a small business loan. The difference is, if your business fails, you do not have to repay the money. And then there are real business loans; they are called soft loans because the terms and conditions are very generous. The interest rate is usually quite low, some are even interest free. Next, you can get what is known as equity financing. With this type of grant, you don’t pay the grantor back in cash, but in shares in your company. In this case, the grantor looks at your business as an investment; they believe you have the potential to grow your company into something profitable, and that will mean that the shares they own will increase in value.
Sometimes, business grants in the UK aren’t about money at all; they have to do with skills. After all, many new businesses often lack knowledge or skills in a particular area: marketing, promotions etc. So, some grant programs have come to recognize this, and they offer free (or greatly reduced) advice on those critical subjects. Then there’s the issue of resources. For some small business owners, it’s not that they don’t know what they’re doing; it’s that they don’t have the physical materials or maybe a factory / store to develop their product or service. So, some grants are made of up raw materials, office equipment etc. Going hand in hand with this type of grant is the transfer of technology. Very often, new and innovative inventions or processes are created by large corporations or government labs. In the U. S. , NASA was responsible for incredible breakthroughs in fuel cells, computers etc. So, sometimes large corporations or governments will share these new developments with some small companies as a means of both helping they to get started, and to disseminate the technology.
Then there is the issue of not new technology, but merely the best way of doing something. As an example, a dozen people will have a different way of laying bricks. Yet, one of them might do it the best and most efficient way. Over time, that way will become the industry standard. This is also known as “Best Practices”, and some companies will share these with start-up firms to help them operate in the most efficient means possible.
Business Grants For Women
December 17th, 2009Women have some advantages, for example, women can be very intuitive and they have the ability to blend analysis and creativity; very useful qualities for successful business startup and expansion, as proven by the growing number of successful businesses owned by women. So, where to find funds to get started in business or expand the one you have? The United States government provides economic aid, in the form of Government Grants, from the general federal revenue to various recipients, to carry out public support or stimulation as authorized by the law of the United States. The grants are distributed by 26 grant making agencies which provide hundreds of billions of dollars of funds to around 900 grant programs administered by the states, local governments and various agencies. These grants are to stimulate economic growth. Although business grants for women are not available directly from the U. S. government, free help for planning, starting and expanding businesses, and cheap loans are. The Small Business Administration provides planning, financing, training and advocacy for small businesses and it works with thousands of lending, educational and training institutions nationwide and is able to provide low interest loans. The U. S. Small Business Administration, or SBA, has offices in every state, the District of Columbia, the Virgin Islands and Puerto Rico. The contact details for each of these can be found at SBA Women’s Business Centers. The SBA can help you if your business is, or will be independently owned and operated, is not dominant in its field, and meets the maximum business size standards. Business grants for women are available from the states. Contact details for each state can be found at Grant Resources by State. Simply put, discover which grants you are eligible for, and apply for them. Business grants for women are also listed in the Catalog of Federal Domestic Assistance. In fact, the CFDA provides a full listing of all Federal programs available to State and local governments (including the District of Columbia); federally-recognized Indian tribal governments; Territories (and possessions) of the United States; domestic, public, quasi- public, and private profit and nonprofit organizations and institutions; specialized groups; and individuals. It is of course comprehensive and, once again it is necessary to discover the grants for which you are eligible and apply for them.
