"I need a Grant!"

Most telephone calls to our office start with, "I need to get a grant to start my new business."

The U.S. Small Business Administration does NOT offer grants to start or expand small businesses, regardless of the gender, ethnicity or economic status of the business owner. In fact, there is no government agency that hands out free money to start a for-profit business. Almost all small businesses are started with cash from personal savings, friends and family or loans against the owner's home. These start-up funds are usually supplemented with commercial loans that are often guaranteed by the SBA.

A few government grants are available to small businesses for early stage research and development in highly technical industries. These grants address important needs of interest to the nation, such as scientific advancements in medicine or food production.

There are a variety of government agencies and organizations that do give grant money to educational or not-for-profit entities, but this money is usually tied to a social issue or need.

Pursuing grant money to start your small business is usually a waste of time and effort that could be spent preparing your business plans.

 

 

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