What other source of capital are available? How do grants work?
Posted by admin on 10 Aug 2009 4:04 am. Filed under Other - Business & Finance.
elideneed33
I have 3 excellent business start-up ideas, but I have a few major problems: My credit is bad, I have no way of raising capital traditionally, I don’t understand the grant process, I have no available funds to purchase any of those grant books or venture capital memberships I have no family to help with start-up. What else is there for me?
I have 3 excellent business start-up ideas, but I have a few major problems: My credit is bad, I have no way of raising capital traditionally, I don’t understand the grant process, I have no available funds to purchase any of those grant books or venture capital memberships I have no family to help with start-up. What else is there for me?
I know that all of my ideas are viable and are needed in my area/community. I have done a lot of research, leg work, phone calls and other contact and communication.
Any ideas that would help me get my ideas out of my head and actually up and running before the end of this year? I truly want to get off government assistance but am limited to the types of employment that I can do. HELP!!!
Oh, my ideas consist of a full-range music school, youth center and a live music club. I have the verbal support of my community but no one is willing to help raise capital.
One Comment to “What other source of capital are available? How do grants work?”
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On August 10th, 2009 at 11:23 pm
It is hard to find grants to start a business. Unlike the myths that some perpetuate, federal government and even private foundations hardly give grant money for starting a for-profit business.
One possible exception is for companies developing or exporting agricultural goods, including food and forest product. Another exception could be the Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) programs , which fund the research and development of technological innovation that meets specific government needs.
Your best bet actually will be from the states if they offer grant programs for women (or any other special interest groups — minorities, women, disabled, veterans, etc). Or check with non profit organizations, particularly women organizations if they offer grants. Examples include
Iowa Women’s Foundation
New Mexico Women’s Foundation
Even SBA does NOT give out grants. From the SBA website
“The U.S. Small Business Administration does not offer grants to start or expand small businesses, although it does offer a wide variety of loan programs. (See for more information) While SBA does offer some grant programs, these are generally designed to expand and enhance organizations that provide small business management, technical, or financial assistance. These grants generally support non-profit organizations, intermediary lending institutions, and state and local governments.”
Nonetheless, you can go to the Catalog of Federal Domestic Assistance (CFDA) and Grants.gov – these are two sites created by the federal government to provide transparency and information on grants. Browse through the listings and see if you can find any grant that would support a for-profit venture.
Here is a listing of federal grants for small businesses. See if there is any available for individuals for starting a business — THERE’S NONE.
Most of the federal grants are given to specific target groups with specific requirements (e.g. minority business owners involved in transportation related contracts emanating from DOT – Grant#20.905 Disadvantaged Business Enterprises Short Term Lending Program
Grants are also often given to non profit groups or organizations involved in training or other similar activities (grant 59.043 Women’s Business Ownership Assistance that are given to those who will create women’s business center that will train women entrepreneurs