• Free Money For Small Business?
Posted by Kate Lister on September 26th, 2008
You’ve seen the ads on TV where the idiot in the suit covered in dollar signs screams at you about free money. Millions from untapped grant sources—for free! Use it to start any business!
Not. All he’s promoting is his book. Other, more nefarious characters are out for more than that. Check this out from the Department of Consumer Affairs or this from Business Week. Here are the facts.
The government’s largest grant source is the Small Business Innovation Research program (SBIR). It provides funding for specifically identified research and development on behalf of governmental agencies such as the Dept. of Health or the Dept. of Transportation, etc. It’s available in very narrowly defined research situations. The accounting for this type of financing is sophisticated, and the agency will, obviously, expect that you have expertise in those technical areas for the R&D required.
Other specialty grants are available from philanthropic organizations for HIV research, space technologies, and solutions to world hunger and global warming. Local, County, State, and Foundation grants are occasionally available to businesses involving education, poverty, and the arts. You can find out about these by checking the web sites that represent each. But, sorry to say, the corner store or home-based business isn’t going to send the Warren Buffet’s of the world running for their checkbooks.
One final note, there are a number of micro loan programs that typically provide $10,000 and up to $35,000 to encourage start-up and expansion loans for small business. Some are offered at very attractive interest rates, particularly if the business is located in a disadvantaged area. Visit Accion International or the U. S. Small Business Administration at www.sba.gov for more information.