How to Obtain a Small Business Grant
It is not an easy job to look for government grants for small businesses as it requires a lot of research on your part. Resources available on the internet can, however, provide you with a starting point to conduct your own research. Finding and getting grant for a new or existing for-profit business may be difficult as governments usually give small business grants to non-profit organizations for programs and services that benefit the entire community. To be entitled for loan grants, the business must focus on research and development for technology based products and services for the government. Understanding all the requirements for any type of loan is the first step in obtaining the right sort of loan.
Such grants can be readily available in many states and there are a number of state development agencies that offer direct small business loan grants and other forms of financial aid. They are different in different states and you will have to do some research to find one that suits your specific requirements. With the objective of providing grants and venture capital to such small businesses, the federal government works with intermediaries, banks and lending institutions. So, explore all possible avenues to be eligible for a small business grant.
The Small Business Innovation Research (SBIR) program, comprising ten federal agencies having annual external research and development of more than one hundred million, must reserve 2.5% of their funds to award in the form of small business loan grants. These grants are offered annually on a competition basis. You can also look for the Small Business Technological Transfer (SBTT) program. They are five different agencies having an annual external research and development budgets of more than one billion. These agencies have to keep aside .15% of their funds for award to collaborative efforts between smaller businesses and non-profit research institutions. If you face any problems obtaining small business loan grants, the Small Business Administration (SBA) offers a number of financing for you.
You can find a number of reliable web sites such as GrantsWeb, the Catalog of Federal Domestic Assistance on which you can search for available grants. Again, keep in mind that grant money is rarely given to for-profit ventures for purposes of obtaining capital.
Although not a lending institution, each Small Business Development Center (SBDC) keeps a close a relationship with the local banking community. Even if your loan is not one hundred percent guaranteed, a good word from an SBDC counselor might improve your chances of getting the grants you need for your small business. Under certain circumstances, the Small Business Administration will guarantee a percentage of business loans for qualified small businesses. Remember that most government grants are not available all year-round. So, you have to follow specific guidelines of time in order to be eligible for grants. In general, you can apply for them only when they are announced by a government agency. It is true that grants do not need to be repaid. But it really takes some hard work just to get it.
