The Truth about Us Government Small Business Grants

A Home Business Article Contributed by Elizabeth Fox-Wise

Government Small Business Grants are Scarce

It is extremely important for all small business owners to understand that government small business grants are available only in very limited supply to a very few US citizens.

Government small business loans and funding programs, which typically offer excellent interest rates, are available for a much larger group of people. However, there is a distinct difference between the two, which you must understand.

It is no secret that small business is risky business. The fact is that the number of small businesses which survive the first year is VERY small. And studies have found that ninety five percent of all small businesses fail within 5 years. Therefore, the government is very careful about providing small business grants to applicants. Furthermore, most Americans agree that their tax dollars should not be going to fund individual's business for profit motives.

So Who Can Get a Government Small Business Grant?

There are some government sponsored grant programs for small business. These get soled out into very specific channels.

There are only a few circumstances in which the government would provide grants to small business owners.

Those small business owners who have a small business that is active in research and development for the technology sector. As this area is a priority for the US government, small business grants can sometimes be obtained by those businesses.

Another example where small business grant money could possibly be available for a small business owner, is a small business that contributes profoundly to the community at large. The government may consider offering a government business grant to those small businesses where communities will clearly benefit from the work of the business.

Government grants can also be accessed in other ways for small business owners. If your small business employs various groups of people which the government has identified as a priority, other government grants could be accessed that indirectly fund small business. These government grants can then help the small business, while fulfilling the connected, designated purpose of the government grant money. Be creative while trying to access small business grants, always thinking about other grants that will inevitably assist the small business.

Unless your small business falls into one of those categories, your odds of getting a small business grant are very low.

So If Not Through a Small Business Grant, is There Any Way the Government Will Help?

The financial assistance the government will offer for most small business comes in the form of government small business loans. The key difference that you must be aware of here, is unlike government small business grants, government small business loans must be repaid.

Typically these government sponsored small business loans; however, will be offered at a much lower interest rate than traditional small business loans.

This small business loan program is how the US government tries to assist small business owners without taking on too much risk.

Small business does have a lot to offer economic productivity, so the Government does want to offer affordable funding. Small business grants; however, present too high a risk for the government. This risk is why business grants are few and far between and small business loans are much easier to obtain.