Small business owners often look forward to get small business grants from the government. But the fact is that the federal and state government agencies do not provide any kind of grant for starting off a business or cover the operating costs of the business. No special government grants are available for women, veterans, minorities, or disabled entrepreneurs.
So, you must be wondering that why do then people ask for small business grants if nothing exists, isn’t it? Well, the situation is such because lots of people keep on telling that such grants exist in order to sell their own sbwire.com loan products. You should always note that when someone promises you that you will be getting a small business grant just by subscribing to a book, magazine or website, then you should see the red flag. Run fast if you wish to save your money.
Now the question may arise whether or not the Small Business Administration gives out business grants to applicants. Well, SBA does not provide any kind of grants or loans to anyone. However, it does provide guaranty on loans which are made by commercial lenders for business purpose. Thus, in this way, SBA assumes certain responsibility for the financial risk incurred by the lender by granting the loan to the borrower. Most of the commercial lenders prefer to provide SBA backed loan to those business owners who do not qualify for other traditional loan options.
Here, it should be noted that government does give out grants but they are only available to non-profit organizations, educational associations, state agencies and local government agencies. These government grants are known to cover a huge range of activities which may include agricultural products as well as zoological research.
The eligibility criteria for these grants keep on varying as per the purpose and the use of the grants. In case of some for-profit businesses, these government grants might be used but that is rarely the case. It is most important to note that even if you are a for-profit small business or non-profit small business, you will not be able to use the funds to cover the operating expenses or debt payments. You will not be able to use the funds as start up costs also. Thus, if you are into forest restoration activities, then you will be able to qualify for grants given out by U.S. Forest Service.
You should also note here that grants cannot be considered as free money. Grants should be used for specific purpose which benefits the organization that offers you the grants. For example, the State of Nebraska provides grants to child care businesses. These businesses will have to make improvements to their facilities with the funds that they receive from the grants. There are some small and home-based businesses which are also eligible, but the terms are specific. Here you should also note that if you wish to get any detailed information about grants given by the government, then Grants.gov is your one-stop solution.
Hope now you have an idea about some of the facts associated with small business grants!
