Government Grants and Loans to Start a Business
Individuals looking to start a business may apply for grants and loans available from the government. There are many government loan programs, and these are provided for very specific purposes. Qualification for these programs requires a review of a business plan, management skills and personal finances.
Government Loans for New Businesses
The Small Business Development Center has counselors who help businesses to find government loans and grants. They work with a program set up by the Small Business Administration and are able to determine loans that are specific to your needs. There are several government loan programs designed for business startups, and information on these is provided on the Small Business Administration website. There are also government loans which are available to businesses with special circumstances, such as businesses owned by veterans, women and minorities. Also, special loan programs are provided for businesses located in distressed and rural communities.
Micro Loans for Starting a Small Business
The Small Business Administration offers a short-term loan for business startup. These are small loans that can be used for inventory, supplies, equipment and working capital. The interest rate of these loans is in the range of 8 and 13 percent. Information on this program is available at the Small Business Administration's website.
Federal Grants for Starting a Business
Grants are given to educational institutions and nonprofit organizations to provide assistance to small business, but government grants are provided directly to small businesses. More information about these grants can be accessed at the Small Business Administration's website. State and local governments offer grants to some small businesses and there is more information on this at the website maintained by the Economic Development Directory.
Applying
If you want to start a small business and wish to apply for a government grant, go to Grants.gov. They have a database of available grants which you can search and then apply online. If you want to apply for a small-business loan, go to the website of the Small Business Administration at SBA.gov.