Federal and state loan programs for starting a small business exist for those who qualify. Applying for grants may be the best solution for those looking for assistance to start a business. Look closely at the various options to find the appropriate avenues to find funding. While there may be obstacles to qualifying for subsidies, for those with a strong desire to succeed, there are often ways to fit a business into the various regulations.
Small Business Administration
The Small Business Administration (SBA) has a wide variety of programs under which a business start-up may qualify. Grants are typically awarded to nonprofit organizations to enhance existing programs and to help with technology and management upgrades. Low interest loans are made through banks and guaranteed by the SBA. Repayment may be between 10 to 25 years. Eligible applicants can find applications and information through the government's SBA website.
State Grants
Most states have economic stimulus funds that they make available to small business owners. Start-ups that fit into the perceived needs of the state are typically given priority. Supplying jobs in a depressed community can prove helpful when applying for a state grant. When direct grants are not appropriate, many states will offer tax breaks and incentives to new businesses to subsidize their start-up operations. Contact your state's Department of Commerce or workforce development agency to find out what funds are available and what the requirements are for eligibility.
Canadian Subsidies
Like the United States, certain businesses are given priority when it comes to funding. Grants for underserved communities and for businesses that fill a unique niche often receive funding. Some of the Canadian programs are called by other references such as awards, nonrepayable loans and contributions. Check with the Canada Small Business Financing Program to find out the requirements needed to receive a grant.
Special Interests
Grants and additional funding often are available for special interest groups, such as farmers, minorities and women. Various departments, such as Health and Human Services (DHHS), the Environmental Protection Agency (EPA) and the Department of Labor often sponsor programs within their own agencies with funding for new businesses that meet certain departmental criteria. Look for those options through Grants.gov.
Scams
Beware of companies that offer to sell lists of available government subsidies. Any legitimate grant or loan from a government agency is freely posted on government websites. There are however, many good sources available that offer professional services to prepare the amount of paperwork to apply for many of the grants. A well-prepared grant application can increase the odds of receiving funds.
