Posts Tagged ‘government finance’
Getting Government Money - Ways the Government Can Help Finance Your Business
Thursday, October 18th, 2007
Small business is the backbone of the economy, and the government has a vested interest in helping small business owners to get their ventures off the ground. There are many ways in which the government can help finance your business; the problem is that most people don’t really know much about these programs, or how to find and apply for them. Here are some of the programs the US Government offer that are designed to help small businesses grow and prosper.
Government Grants
You can get a government grant for your business if you meet the criteria. Often, women and single parents can get these types of grants more easily. Also, if you’re in a minority group, you may have a better chance of getting a government grant. They are not easy to get, and finding information on them is harder. However, if you’re able to get one, often, you never have to pay this money back. It is designed specifically to help fund small businesses. One great online resource to look for government grants is the Small Business Administration website, where there are many sources and information on government grants. See more information below on how the SBA can help you.
State Small Business Grants
There are actually many small business grants available on the state level. These grants can help provide start up funding for your business, provide funds to purchase necessary equipment or supplies, and even help you find a building to open your business in. These can be very helpful if you meet the criteria for the grants. It’s actually quite easy to find information on these types of grants, just by doing a state relevant search on the internet.
Small Business Administration
The government, through the Small Business Administration, or SBA, is providing some very useful loans. You can get low interest, long-term loans that will provide start up funding for your business, or expansion money. There is no application fee for small businesses, and there is an interest rate cap so you are assured that your interest rates will never go over a certain amount. There is no bank management fee either. You will need to include a few things for your application though. Some of the things that the SBA requires are a business profile and a statement of how much money you need and what it will be used for.
If at all possible, small businesses should try to get a grant rather than a business loan. Grants are monies that usually never have to be paid back. In fact, money is allocated each year for grants, and often, all of the money allocated isn’t used. This can be a life saver for a small business that is struggling or just starting out. If you’re able to get a grant, you don’t have to worry about loan payments, etc.
If you are not able to get a grant, a small business loan can be very helpful as well. Although you do have to pay it back, you can get low interest loans and small payments. The good thing about loans that are paid off on time is that next time you need a loan for whatever reason; it will be easier to get one.
There are many different government resources for small and large businesses. Use the information above to point you in the right direction for your business needs.
Tags: capital, Finance, Finance and Accounting, government finance, loans, money, Rebecca Button, SBA, small business administration, Starting a Business, startups
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