Grants and Scholarships

Are there real legitmate small business grants out there that can be obtained?

I am doing my very best to find legitimate ways towards starting my business. And with no luck, I have found little to nothing. I would like to find a way that I can start my business with either a $10,000 to $20,000 grant. Please help.

Public Comments

1. grants are usually given only to certain classes of people (minorities, women) or for specific type of businesses or if you live in a specific state. You would have to write a grant proposal for each of the potential grant or organizations, which is a very specialized type of document. to get any kind of investors, you will need a professional business plan - there are books for available grants (Andrew Lesko's - seen on TV) and books for writing business plans - invest in one of those first - see if your library has lesko's book- it's most likely a waste of money to buy - very little chance you'll qualify for any potential grants
2. Unless you're a non-profit organization, looking for grants is basically a waste of time. The federal government has some grants for very specific operations. You can check the Catalog of Federal Domestic Assistance which lists all government grants. Just get a low interest business or personal loan and get started. You could search for investors instead which would take a while but could be better than a loan.
3. Once again, there are NO grants for small businesses unless they are defense, science, or technology related firms.Get a microloan from a local non-profit microenterprise organization in your area. Good luck! http://www.microenterpriseworks.org/inde... About Microenterprise Microenterprise Defined AEO and its members have defined microenterprise as a business with five or fewer employees requiring $35,000* or less in start-up capital. AEO estimates that there are over 20 million U.S microenterprises, which represent 17% of all private employment in the U.S. In addition, microenterprise represents a path from poverty to financial security for many low-income individuals. * Loans of $35,000 and under are known as microloans. Microenterprise Development Industry The estimated 600 microenterprise development organizations (MDOs) operating in the U.S. exist to support disadvantaged entrepreneurs as they start or expand their businesses. MDOs can increase the chance of business success by bridging the gap between disadvantaged individuals and the tools they need to start and grow successful businesses. With the help of AEO services, MDOs offer business training, technical assistance, access to capital, and other services to entrepreneurs to assist them in realizing their dream of business ownership. For many low-income entrepreneurs MDOs represent the only opportunity to access the capital and business tools necessary for business start-up. Key Elements of Microenterprise Development AEO has learned that comprehensive microenterprise development programming consists of four key elements: Training and Technical Assistance; Credit and Access to Credit; Access to Markets; and Economic Literacy and Asset Development. Training and Technical Assistance Microenterprise development practitioners agree that the quality and quantity of training and technical assistance provided to an entrepreneur can often be the biggest factor in whether the entrepreneur’s business succeeds of fails. Microenterprise trainers have the difficult task of teaching complex business skills to entrepreneurs with little formal training, limited time to engage in learning; and various levels of education. Though training opportunities vary from organization to organization, typical microenterprise development training topics include: business plan development; integrating technology; bookkeeping and business management; and marketing. Training is offered through various settings including: classroom type lectures; one-on-one counseling; peer networking; and mentoring programs. Credit and Access to Credit A significant challenge for many microentrepreneurs is access to capital. Traditional lending sources do not find it profitable to lend $35,000 or less and choose not to. In addition many low-income individuals looking for a path out of poverty through self-employment, have poor (or no) credit history with no hope of receiving a bank loan. Some microenterprise development organizations (MDOs) offer credit directly from an in-house loan fund, which typically lend amounts from $100 to $35,000 and when granting loan requests look at other factors in addition to the entrepreneur’s credit. Other MDOs partner with other organizations or institutions in the community to provide access to credit. Examples of these type of relationships include partnerships with banks, credit unions, or other financial intermediaries that offer loans and various other financial products. Access to Markets The goal of microenterprise development programs is not just to create marginal businesses, but to create successful ones. To help microentrepreneurs increase sales and profitability, many programs create specialized networks of their clients’ businesses, especially in industries where microenterprises are flourishing. These industries, also referred to as sectors, include: specialty foods; jewelry; arts, crafts and gifts; clothing and textiles; furniture; computer technology; daycare; and environmental products and services such as recycling. Access to market services include: sophisticated training on marketing and sales concepts; development and distribution of joint catalogs; Internet access and e-commerce; trade shows; and business incubators. Economic Literacy and Asset Development AEO has learned that low-income entrepreneurs can greatly benefit from increase knowledge of the benefits of banking and saving principals. Many entrepreneurs need to learn the importance of establishing checking accounts and savings accounts (i.e. Individual Development Accounts); the importance of establishing a credit rating, and in many instances, learning about credit rehabilitation. In addition many entrepreneurs need training in tax laws and regulatory issues, and sound accounting principles and types of insurance.
4. I used to do a lot of grant research for my ex-husband. I learned a few things (some already shared here): * Grants are often given to very specific groups - like non-profits and minority-owned business. * Grants require tons of paperwork. * Those who give grants are often looking to see that you've made a significant investment on your own. In other words, grant-givers don't want to be the source of startup money. * Even when the grant is startup money, it almost never covers salaries. Many are marked for "capital improvements" which means to upgrade the building or purchase equipment. If you need the $20K to help fund yourself as the first employee, it's much more difficult. * Those who receive grants have very specific reporting requirements after receiving the grant. You must show how every copper penny was spent. * Many grants are offered as low-interest or no-interest loans with deferred payments - and are often forgiven if you are able to stay in business past a certain number of years. * You need a very good business plan, including a marketing plan. * Venture capital is an excellent alternative if you can't find grants (basically rich people who like to make individual investments in startups) - and only get the money back if you succeed.. I wish you the very best. My fiance and I are considering searching for grants to start a busienss. It's a tough road.
5. If you are in the USA, most of the grants come either from foundations that donate to charities or the government. Since I presume that you want to open a for profit business, unless it will be serving the sole purpose of supporting the homeless or something close to that, I don't see you qualifying as a charitable organization. The government grants are dedicated to either non-profit organizations or companies involved in research and development either in the health care industry or in technology that has military implications. I also don't see your business qualifying for that. If you have been watching late night TV where they talk about free money in grants, I suggest to you that there are non. In some foreign countries, municipalities, counties or cities have funds to help companies startup businesses. You'll have to research that in your own country. Hope this gives a little bit of perspective.