Small Business Grant Sources
A Home Business Article Contributed by Sharon Hill
* Grants for Small Business
Small Business Grants come from several different sources. The free money source may be government agencies, foundations or private donators.
Government Grants for Small Business
There's small business grant money out there that a small percentage of folks eligible to receive it are aware of. If you're female, a member of a minority, a small business owner, or a church group, there may very well be U.S. federal grant money for you. Billions of dollars in grant money goes unused because folks don't know it's there, or give up because of bureaucratic red tape. Grants are available in the amount of $5000 to $800,000.
Much of that money is earmarked for those whose poor credit rating has previously left them ineligible for aid. There are even free or reduced-cost programs for those recently unemployed or otherwise economically disadvantaged that would provide prescription, vision and dental coverage as well as legal assistance.
There is a government publication, by print or CD-Rom, for $39.95, that offers tips on how to apply and qualify for these small business and other grant programs. You can call or order online. The toll free number is 800-416-0712. the site is governmentgrants-us.com. Two online sources of federal grant information are www.firstgove.gov and the Catalog for Domestic Assistance at www.cfda.gov
Foundation and Individual Grants for Small Business
A source of foundation grant funding information is the Foundation Directory Online at fconline.org. For as little as $19.95 you can conduct a very specific search for the grant you need. With a database fo 77, 000 grants, the site allows you to search by foundation name, city and state, type of support, fields of interest and other criteria.
Private philanthropists can be found at philanthropy.com, a biweekly newspaper that publishes current contributions and trends for grants to nonprofits. (Just because you're a profit making small business does not preclude you from partnering or subcontracting with a related nonprofit to take advantage of this grant money.) Of course, you can also apply for nonprofit status, or perhaps create a nonprofit subsidiary. You might also join a related club, organization or trade association, that could then sponsor you for the grant.
Nonprofits have a definite advantage when it comes time to dole out grant money. For information on qualifying for nonprofit status you'll need Internal Revenue Service (IRS) pamphlet number 557, entitled "Tax-Exempt Status for Your Organization." You can order online by going to irs.gov and clicking on Forms and Publications.
Should you need training before you can start or expand your business check out www.ed.gov for grants offered for education.
Comparing the Small Business Grant Choices
While the most advantageous feature of a government grant is its redundancy. No federal granting agency is going to disqualify you because you've been to the well too many times. Private and foundation grants, however, place restrictions on the number of times you can apply and receive a grant from the same source. Government grants are the most time intensiveness, with much more paperwork and a possible waiting period of six months or more before you know if you got your grant.
Like anything else, it's best to shop around and compare. Be prepared to follow instructions to the letter and be patient. This free money is worth the wait as well as the work.
