Find Funding for Your Small Business Ideas

Government Grants to Finance Your Business

Many individuals have dreams of opening their own small business. Although they may have a great business plan and other items needed to get started, few actually have the funding that is required to begin such an endeavor. Entrepreneurs who do not wish to drain their personal savings or take out any personal banks loans are often left wondering what other types of funding may be available to them. The U.S. Small Business Administration work directly with these individuals and can offer new business owners grants and other tools to help get businesses off the ground.

Government Small Business Grants

First and foremost, it is important to note that the Federal Government does not provide grants for opening or expanding businesses. Since these grants are funded by tax dollars, there are strict regulations on how the money can be distributed. Federal Government grants are only issued to non-commercial organizations, like non-profits and educational institutions which cover areas such as scientific research, technology development, and advances in medicine. What the Federal Government will do, however, is provide grant funds to state and local governments for economic expansion.

At the local and state level, there are grants available to help individual’s start a business. Grants may also be available through non-profit and other types of organizations. These grants can be used to fund a number of projects, specifically in area such as child care or elderly care center expansions, tourism marketing and even the development of energy efficient technologies. But, this is not simply free money – many grant programs have a set of criteria they follow and many require the recipient to match the funds that are being dispersed for the project and the amount will vary from one project to the next.

U.S. Small Business Administration Search Tool

The U.S. Small Business Administration, or SBA, has developed an online tool to help would-be small business owners locate the funding they need to start their project. This search tool helps to pinpoint what government investment programs may be available to help start or expand a business. After putting in some basic information, this tool can help match a business owner to exactly what programs may be most beneficial to them. This tool was created by BusinessUSA in conjunction with SBA and can be found at www.SBA.gov under the Loans & Grants headline.

Finding funding for a small business can be very stressful – even those individuals with the most thought out and researched plans often struggle to find the financial backing to make their dreams a reality. When personal loans and savings accounts are not an option, it may be time to look into alternative funding. Small business grants from local and state governments, or even some non-profit organizations, can be a great alternative to traditional funding. Whatever the case may be, it is always valuable to research what options are available to you when opening your very own small business.

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*Photo Courtesy of 401(K) 2012 via Creative Commons License