Government Small Business Grant – Who is qualified?
It is a common misconception that the US government has direct grant programs available for starting a new business or expanding an existing business. Yes, even though you’ve heard that ‘free grant money’ is available today for your new business, you might be disappointed to learn all the facts about government small business grants . According to the web site, Business.gov, “The federal government does not provide grants for starting and expanding a business.”
Government small business grant from the federal government are only available to non-commercial organizations, such as non-profits and educational institutions in areas such as, medicine, education, scientific research and technology development. The federal government also provides grants to state and local governments to assist them with economic development.” (source: www.business.gov)
If you are a woman entrepreneur in search of funding, there are other options available to you. Private and non-profit organizations have grant programs, especially at the local and state level. Find out about a local economic development board and inquire about small business programs.
Government Small Business Grant Loan Programs
Federal and state governments don’t give away grant money but they do often have low-interest-rate loan programs. Some loan programs to consider:
SBA Microloan Program. This program provides small loans to startups, newly established and established small business owners. The funds are funneled from the SBA through certain non-profit community lenders. Loans are made up to $35,000.
The Community Express Loan Program. This is an SBA loan program targeted to small businesses in low and moderate income areas. The borrower is not required to provide collateral for a loan of up to $25,000.