New Small Business Grants: Getting Grant Money For New Start Up Businesses

One of the challenges facing a startup small business is funding or finance. Where to get the money to get this new small business up and running. This is surely the biggest obstacle to every business, and the one that prevents many businesses even getting off the ground. Generally small finance has a few routes chose from when it come to financing and funding.

Bank Loans tend to be a pretty onerous route to take. Banks demand all sorts of collateral as well as a formal and very detailed business plan. Banks often make it tough to give you a loan and today with the credit crunch and difficult economic times even more so. They could demand collateral such as the business owner’s assets like perhaps his home, if owned. Banks also may have stipulations and conditions in the loan agreement which can be tough to meet. For example banks may demand that you rent the space that you want to use for your business, rather than buying the space. The reason is they do not want you tying up money in assets that offer no short term return. They may stipulate that you use the money for inventory, which has some almost immediate value in the form of goods for resale, rather than buying the building. Naturally bank loans come with interest charges. So often these loans come with multiple strings attached. The amount of finance and the type of business as well as the business owner’s personal financial record are key to the receiving of any kind of loan.

Grants are not provided on the same conditions as capital received from private investors either. Typically funding from an individual is either going to require a high interest rate or obtaining some ownership in your business. Grants are simply provided by government agencies and private foundations in order to help businesses succeed, which is good for the overall health of the economy and local community.

In addition, grant funds are provided as tax-free money that can be used for a variety of business purposes. The specific terms of the grant varies from program to program, but there are funds to help new business owners obtain commercial property, buy furniture or equipment, or hire employees. There are also government grants for small businesses to help entrepreneurs withe expanding their existing business.

Whatever the case, if the small business owners has a solid plan and is confident in building a business that will succeed, there are additional resources available to help with financing. By being a little resourceful and accessing New Small Business Grants grant databases, individuals can quickly find and apply for these funds.

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