There was a time when the concept of free money was a very American notion.
But, as the economy has tightened and budgets decreased, there are very
few avenues towards capital to start up a new business that do not involve
loans and interest. This makes the path towards financial independence
all but impossible for many working Americans. However, the small business
grant is still available (even in these very lean times!) as a potential
source of funding for you dream of self-employment.
A small business grant is part of a program funded by the federal government
which provides capital for start up businesses. Sometimes a small business
grant will simply give the money to a recipient with no requirement of
repayment. Other business grants will require you to repay them with a
minimal amount of interest over a period of years. Whether or not a small business grant requires repayment will depend on the nature
of the grant itself.
Obtaining a small business grant is certainly no simple matter. In truth,
over a million applications are received every year with only hundreds
being awarded. However, the fact that only a few hundred are awarded does
not necessarily mean that the others were turned down for lack of funding.
Quite the opposite, it is very common for a small business grant to be
turned down due to filing mistakes as opposed to lack of funds. In fact,
it is a common occurrence for funds to be returned at the end of the year
because not enough people qualified for the grants available.
But, the government is not the only potential source of a small business
grant. Businesses will frequently form a "private foundation"
which is responsible for disbursing funds set aside for grants and other
useful community needs. The incentive for a company to use a private foundation
is simple: tax savings. A company will pay less in corporate taxes when
it gives away a small business grant than if it merely reported the income.
Therefore, the private business community is an excellent grant source
and is expected to be so in the future unless the tax code is significantly
altered.
The best way to ensure that your small business grant is approved is to
be organized and very thorough in filling out the application. A winning
small business grant will generally include a business plan that includes
a detailed explanation of what funds are needed and why. But the most
important thing to remember is to fill out the application thoroughly
and exactly as directed. Attention to detail is what will separate the
winners of a small business grant from the losers.
Steve Vaile - Small Business Grants Hub is an information
site that contains links, a directory and other Small Business Grant Information.
It can be found at: http://www.smallbusinessgrantshub.com
