Business start up grants primarily offered to the businesses which are about to start or it have just started and been running successfully under 2 years. Start up business grants are usually awarded by the federal government state & local levels and by the private lenders. In order to get qualify for these grants your small business must fulfill certain requirements like the kind of product or services which are offered by your business.
Following are some of the institutions which offer the start up business grants and loans.
SBA
Generally the SBA will not offer any kind of start up business grants to the businesses. But it will help the businesses to locate the federal, local and state financial agencies which offer the business start up grants. Small business administration actually has a special access to the resources, listings and some other very useful research tools which are not made available online to the general public. Although SBA doesn’t provide you any grants or loans to the small business it will help the businesses to develop a perfect business plan which plays a vital role in obtaining any business start up grants.
Ownership based grants
Some types of grants are offered depends on seeing the ownership type of business. For example, small business which has been running by the women deserves to be awarded the small business grants for women while the same business cannot get qualify for the grant if it has been running by the men. If you are women who want to get start up business grants from Women’s Financial Fund then you can approach them and get the grants which range from $100 – $5,000. Women can utilize the grant for all type of businesses ranging from service oriented small businesses to multi level marketing businesses.
Misconceptions on Repayment
Most of the small business owners used to think that all the starts up grants provided comes under the non-repayment grants. Do not decide anything by yourself. Some types of business grants used require you to repay the grant. All other grants which do not require you to repay the loan may have some other stipulations like providing the donor the owner ship of the start up businesses. So it is better to accept any small business grants after reading the fine print
Why Startup Grant Funds are necessary?
The main aims of providing any start up grants are assisting the start up small business entrepreneur to get his/ her small business stand in the ground. There are few start up grants which are provided for some large some amount while other grants are as small as $100. Business start up grants can also be obtained for the purpose of maintaining websites, business expansion, any other business promotional services and equipment upgrades. Larger grants offered for the small businesses will help the business in acquiring the office space or any new office equipments. Regardless of the size of grant which is being offered for the businesses it will certainly help the business to meet the expenses by saving the significant amount which then can be used for some other promotional purposes.
Warnings
HHS of United States offer many assistance programs for all small businesses who are interested in obtaining the start up loans. It also helps the small business owner to find out the discretionary start up business grants. Agencies who are offering these grants are very strict with the thing that the small business owner should not use these grants for their personal needs. Misuses of the grants will be regarded as a fraudulent activity and so these businesses can be penalized.