Are grants for small businesses real or fake?
Small business grants do exist!
It is true that grant scams are plenty in number. Scams advertising that federal government gives millions of dollars to businesses and individuals are not uncommon these days. The government does have grants in place, but those are given for education – not for for-profit businesses. On the other hand, the good news is that real small business grants do exist for those in need of help with the seed money. The problem for those searching for such grants is that there are not many organizations giving them away. It is true that hundreds of them across the country can be seen assisting aspiring entrepreneurs with the funding. But there is no guarantee every small business will find a foundation that caters to it. Grant givers will have stringent requirements in place that need to be met just for being deemed eligible. Even if you do find a foundation that has a grant offer in place, chances of receiving the award might be slim, considering the competition you will face. This article is not to discourage the grant seekers but to let them have a peek into what they can expect in the process of finding small business grants.
SBA does not offer grants:
Having made a clear point on what to expect while one is in the process finding free grants for their small business, it is time to answer a frequently asked question. Many ask if SBA, which is known for assisting small businesses, offer grants. The answer is no. Although SBA does not offer grants, those facing financial hurdles can make the most of their loans that come with very low interest rates.
Is it even worth it to look for a grant:
Grant money for starting a business would be very appealing. But in light of the very few opportunities available out there, many could wonder if searching for grants is even worth it. Although searching for days and not finding a single grant could be frustrating for anybody, not looking for one might lead to you missing out on free money. It is certainly worth it to give it a try but once it becomes obvious that there are no grants tailored to you, it would be a wise move to plan on other ways to raise funding.
Which kind of businesses or organizations find the most funding through grants?
This should as come as no surprise to any of our readers – non profit organizations receive the most funding through the grant money offered by foundations and the government. Some foundations offer grants to organizations that focus on a very specific goal – for instance helping women over 40 gain vocational skills. Many others will issue grants to organizations that focus on a wide-ranging goal – for instance, organizations aiming to improve the lives of women. Applying for a business grant that is only open to organizations and not individuals will surely lead to rejection. Ensure you read who is eligible to apply for a grant before going over to the application stage.