If You Think Getting Free Small Business Grant Money Is Easy, You Better Read This

by Herb Wills

These days, the old saying "It takes money to make money" has never been more true. Whether it's 50 bucks or $50 million, your new trigger-up will cost you something. But how can you tell what kind of funding is vital and how measurably of it you will need? Here are the most frequently traveled paths to a bunch of different pots of gold. (1) Family and friends. (2) Bank Loans. (3) SBA loans. (4) Venture capital. (5) Angel funding. Note that grants are not one of the five most frequently mentioned options. Very few businesses are entirely funded by parties other than the entrepreneur. According to an article in Wall Street Journal's Startup Journal, about half of all small businesses finance their formation or expansion with credit cards, according to a survey by the National Small Business Association and Arthur Andersen.

There are very few grants available for starting or expanding a business unless the business involves research and development or high technology. Hundreds of grants have caveats, such as:

1. They are available only for a specific group of people. Mainly: Research and development for high technology, biotechnology, military products and energy related products, and grants for people who will locate their business in a poor area and employ the people who live there.
2. Government grants can be applied for only when they are announced in the Federal Register, or only during a small window of time once a year.
3. You often have to furnish a personal guarantee (putting your house on the line) and/or take on responsibility for raising 10-30% of the finances from your own sources (e.g. savings, loans from relatives).
4. You can explore the SBA's list of Federal Grant Resources, but you'll soon realize that most grants are not available for the typical business.
5. You often have to report on your use of the money, or follow particular rules.

Be organized. You'll need a good business plan and the accurate numbers to show that what your're proposing should work. Especially in the realm of government grants, be prepared with numbers relating to cost of insurance, other funding sources you have or are seeking, and ways in which what you propose will meet Uncle Sam's goals.

FedBizOpps.gov is the single government point-of-entry (GPE) for Federal government procurement opportunities over $25,000. Government buyers are able to publicize their business opportunities by posting information directly to FedBizOpps via the Internet. Through one portal - FedBizOpps (FBO) - commercial vendors seeking Federal markets for their products and services can search, monitor and retrieve opportunities solicited by the entire Federal contracting community.
The default speed for borrowing from friends-and-family is 14%, says Asheesh Advani, owner of CircleLending, which manages private loans; he is also author of "Investors in Your Backyard" from the Nolo do-it-yourself book series.

If you are searching for money to start a new business here are some suggestions.

Current Government Small Business Grant offerings:
03/05/2007 Minority Business Enterprise Center (Ohio and New York) Department of Commerce 1180002052007
08/18/2006 Micro and Small Enterprise Trade-Led Growth Program Peru USAID-Lima USAID-BRAZIL-EG-06-001-RFA
02/01/2007 Small Business Innovation Research CSREES USDA-CSREES-SBIR-000100
2/15/2006 Outreach and Assistance for Socially Disadvantaged Farmers and Ranchers Competitive Grants Program CSREES USDA-CSREES-ICGP-000261

Be aware! Finding the Grant Source is only the first stage. Be sure and get experienced help. Writing the grant application proposal will be the most essential thing that you do. Successful grant writing involves the coordination of several activities, including planning, searching for data and resources, writing and packaging a proposal, submitting a proposal to a funder, and follow-up. Good Grant Writing Software will be an vital tool in your quest for your Minority Grant.