Even though the federal government does not directly issue grants for starting a small business, there are still many avenues open for a small business to pursue. One of the best sources of grants for those starting a small business is through the state development agencies. They specialize in helping small business and offer not only grants but many other types of financial assistance. It may be the case that you will not be able to qualify for a small business starting grant, but you will be able to obtain a loan on very attractive terms.

There are many reasons why a small business can benefit from grants, and not just for their starting capital. Expansion is always high on the list of reasons, as well as carry over finance during a particularly quiet season or as a result of a natural disaster. In a great majority of instances though, without these grants it would be an impossible dream for many of these people to ever realize their business ideas. It could also mean the closing down of many viable businesses that are just experiencing a temporary downturn in trade through circumstances beyond their control.

So, where to now? There is much valuable information and resources which are available to anyone who is serious about obtaining grants for starting a small business. Official government websites are a good place to begin as they will be able to direct you to your relevant state resources. More than likely you will be able to apply online which makes the whole process very streamlined. You are going to more than likely be suffering from an information overload after spending a couple of hours on research, but it is necessary to become familiar with what types of grants are available and which ones will best suit you.

It is important to remember that there are billions of dollars made available in either free grants or low interest loans specifically to help small business. There are some 25 million small businesses operating in the US, and they are responsible for employing more than 50% of the private work force. These workers are an essential driving force in the economy as they are not only the main source of new jobs, but they are also responsible for generating well over half of the nation’s gross domestic product. Grants for starting a small business are an essential economic tool, and there was never a better time than now to take advantage of the money that is being offered.

Grants for starting a small business were the initial source of financing Nick Burton’s online enterprise. His website Grants-Review.com helps applicants to maximize their free grant money.

Your Business Plan

The first step in obtaining your new federal government grant to start your business is to create an effective business plan that explains in detail the intricacies of your new business. You will need to create both a start-up and operational budget that will give you a rough estimate of the amount of funding that you will require to get your business up and going, and how much money your business will require to be operational during the first formative years of the business.

Drawing Up A Budget

Your budget should allow for expenditures such as purchasing or leasing property or a building that you will use as headquarters for the business; the purchase of fixtures, such as shelving, displays, office furniture, computer equipment and other hardware; remodeling or renovation of the premises, including any additions that you will have to construct or add on to the existing facility; purchase of any company vehicles that you will need for business use; purchase of inventory or equipment; an allotment for advertising and publicity to promote the business and draw in customers and clients; and money to train employees and pay salaries or wages. Make a reasonable and customary estimation of the amount of funding that will be required for each item on your budget, and also note where you plan to purchase each.

Once you have established your budget, you will have a clearer picture of how much money you will need for the start-up phase, opening, and operational phases of your business. Having a reliable figure to work for will assist you once you decide which grant or grants you want to apply for.

Where To Look For Grants

All federal government grants are cataloged in a free publication entitled the Catalog of Federal Domestic Assistance (CFDA), which is available by request from the federal government. You can also download this catalog online.

Browse the CFDA for potential grants that your business might qualify. You can search by keyword, federal agency, and by other search criteria. Once you have identified the grant(s) you find interesting, study the grant eligibility requirements. Take care to make sure you or your business idea qualifies for the grant before you spend time writing the application.

Some federal government grants require you to first begin with your local or state government agencies before moving on to federal branches of the agency that distributes certain grants. Study similar funded projects to see how your business idea compares to those that have won grant funding. Make special notation of any post assistance requirements that may be attached to the grant you are applying for. If there are special records you must keep, reports you are required to submit, or audits by the issuing agency, you need to be aware of these contingencies in advance, so that you can prepare well for them.

Applying For Your Grant

Once you have decided that the grant you have researched is the right one for you, you will need to contact the agency to request a grant application. Oftentimes, the application is available in a PDF format for you to download and print. Complete all aspects of the application and submit the application to the appropriate agency. If there is a deadline for submission, be sure to note the date so that your application can be considered timely.

Kate Ross has a Master in Finance and has been a university teacher as well as a financial consultant for years. She specializes in Unsecured Loans and also in helping people to get approved for Guaranteed Loans for Bad Credit, home loans, guaranteed loans, bad credit auto loans, guaranteed credit cards among many other financial products. For further information, please visit http://www.speedybadcreditloans.com