What are Business Funding Grants?
Starting a business can be a daunting task, especially in this bad economy. A lot of people do not know that you can get a business funding grant to help start your business. These are usually in the form of a loan that will need to be paid back, but are much easier to get and pay back because there is no need to go to a bank. The best place to try to secure a grant is the Small Business Administration.
There are certain criteria that need to be met in order to secure a business funding grant. The business can not be a bank, coin or stamp dealer, real estate agency, or related to stocks and other commodities trading. Other high risk ventures such as pyramid schemes or gambling are also not eligible for grants. However, there are specific types of businesses that can get special grants; check with the SBA to see which types these are.
The SBA also uses a persons history to decide whether or not they are eligible for a grant. They ask for a "Statement of Personal History" from you to make their decision easier. It is kind of like a bank asking for a credit report, but it is a lot more lenient. You cannot receive a grant if you are in jail, on parole or probation, or are a criminal defendant. Just like a bank, the SBA needs to know who is more likely to pay off their grant money.
What makes a grant from the SBA so much better than a bank loan is that you do not have to worry about liability as much. If you cannot pay part of the loan, the SBA will pay part of it. After you are approved by the SBA, go to a local bank to get the funds. The SBA being behind you virtually guarantees funding.
There is an option called a microloan that is even easier to secure. If you need less than $35,000 dollars you might be able to get one of these. If you have under 100 employees and need less than that amount, most likely you can get this type of grant. This is by far the easiest grant to secure, and can really help you out if you are planning to start a business with just a couple of employees.
A little online research will tell you if you are eligible for a business funding grant. If you do not qualify for this type of grant, there are other types available. The SBA can also provide you with tips that can help make the starting of your own business a lot easier. Starting your own business does not need to be impossible; a business funding grant can help you get the start you need.