Posted by Biz Central USA Marketing Team on August 4, 2010 under Small Biz and Entrepreneurship,Small Biz News | Be the First to Comment

Everyone has seen the various headlines: “Millions in free government money for your business.” You’ve seen the late-night infomercials and Internet advertisements promise grants to start a business or even to expand your current business. Most individuals even ask themselves, “Is it too good to be true?” It is.

While so many people automatically lose hope when looking for a small business grant the truth is that there are tons of financial assistance programs available to entrepreneurs and business owners in the United States. Eligibility varies, but there are enough opportunities for everyone to pursue. The key to finding these opportunities is to be persistent, creative, consistent in your search, and of course resilient.

Some business grants are available through state and local programs, non-profit organizations and other groups. The federal government does not provide grants for starting and expanding a business. Grants from the federal government are only available to non-commercial organizations. Non-commercial organizations include non-profits and educational institutions. Not only does the federal government provide grants for non-commercial organizations but it tends to focus on areas such as, medicine, education, scientific research and technology development. The federal government also provides grants to state and local governments to assist them with economic development.

If you are interested in a small business grant from the government keep in mind that some states provide grants for expanding child care centers; creating energy efficient technology; and developing marketing campaigns for tourism. These grants are not necessarily free money, and usually require the recipient to match funds or combine the grant with other forms of financing such as a loan. The amount of the grant money available varies with each business and each grantor.

If you are a small business owner that is in search of a business grant start your search by checking with your local government agencies. Many cities, counties, and states give away money to local businesses. Local government agencies award these grants because they want you to create jobs and more tax revenue. Many times these grants are not highly publicized, but it’s in the best interest of the small business owner to give them a call and/or search their web sites.

While many people will try to convince you that federal government agencies give grants to small businesses don’t believe everything you hear. Instead get the right information that will help your small business startup. The federal government doesn’t give business grants directly to businesses, but they do give money to foundations who in turn can give money to small businesses. The federal agency in charge of this is the Grants Program Management Office, and all of their opportunities are listed publicly on their website.  www.grants.gov

Another resource that is often times over looked when searching for a small business grant is with large corporations. Nearly every major corporation in this country has a foundation that gives away grants to enhance communities, and many of these are grants to start or expand a business. Start with the companies that are headquartered in your home state, and find out if they offer financial assistance for local businesses. If not, venture out and inquire about companies that are not in your state. Many times, they don’t mind where your business is located or where you live.

If you are unable to find a grant while searching with the major corporations in your state consider broadening your search and take it to the internet. Use Google and Yahoo to conduct a search using the term “business grants“. You can even throw in the name of your city, county, state, etc. Once you have searched, carefully review the results, and look for web sites that other web sites are linked to. By checking for web sites that are linked to other web sites, it will help you to find opportunities that may be casually listed on a blog or directory. You may even come across a recent news article about a new opportunity.

The next question in your search for a small business grant may shock you. Do you have a library card? Contrary to popular belief, libraries are still an excellent resource and store a lot of information that is not accessible in other places. Find your misplaced library card, go to your library as soon possible, and look for grant books and directories. Don’t be afraid to ask specific questions to your librarian, they are a great resource and always willing to assist library patrons as best they can. You’ll be surprised what you can find.

The Internet is full of many misleading opportunities. Be cautious, and make sure that the organization or company has a professionally developed web site. Also, make sure they have a phone number, email address, physical address – and are not requiring you to pay to apply. Some legitimate web sites, however, do sell access to their directory of opportunities for a monthly fee. Other legitimate web sites may sell e-books that list grant opportunities. This is acceptable, as long as you are not paying to submit an actual grant application.

The next step in the grant search process is to be patient. Many entrepreneurs make the mistake of rushing through the process of finding and applying for a business grant. The reality is that looking for and qualifying for the right opportunity can take some time. When applying for small business grants, make sure to dot your “I’s” and cross your “T’s”. In other words, be thorough and complete. Many opportunities will require lengthy applications that can seem endless. Stay the course, and remember that being inaccurate or skipping questions may disqualify you.

Many small business owners allow the process of applying for grants to intimidate them and scare them away. Yes, it can be time consuming and tedious – but in the end it is very well worth it. Remember, grants do not have to be repaid. This is free money. Don’t give up, and stay positive. You’ll be glad you did!