Dear
Shirley:
It is hard to find grants to start a business. Unlike the myths that some
perpetuate, federal government and even private foundations hardly give
grant money for a for-profit business. And yes, grants mean PAPERWORK - lots
and lots of it, that is why a cottage industry of grant writers was born.
One possible exception is for companies developing or exporting
agricultural goods, including food and forest product. Another exception
could be the Small Business Innovation Research (SBIR) or Small Business
Technology Transfer (STTR) programs http://www.sba.gov/aboutsba/sbaprograms/sbir/index.html
, which fund the research and development of technological innovation that
meets specific government needs.
Your best bet actually will be from the states if they offer grant
programs for women (or any other special interest groups -- minorities,
women, disabled, veterans, etc). Or check with non profit organizations,
particularly women organizations if they offer grants. Examples include
Iowa Women's Foundation
http://www.iawf.org/
New Mexico Women's Foundation
http://www.nmwf.org/guidelines.html
Even SBA does NOT give out grants. From the SBA website
http://www.sba.gov/expanding/grants.html
"The U.S. Small Business Administration does not offer grants to start or
expand small businesses, although it does offer a wide variety of loan
programs. (See http://www.sba.gov/financing for more information) While SBA
does offer some grant programs, these are generally designed to expand and
enhance organizations that provide small business management, technical, or
financial assistance. These grants generally support non-profit
organizations, intermediary lending institutions, and state and local
governments."
Nonetheless, you can go to the Catalog of Federal Domestic Assistance (CFDA)
http://www.cfda.gov and Grants.gov
http://www.grants.gov - these are two
sites created by the federal government to provide transparency and
information on grants. Browse through the listings and see if you can find
any grant that would support a for-profit venture.
Even if you buy books on "how to get grants" or list that supposedly has
information on grants -- all of them are mere rehash of what CFDA has,
albeit packaged differently. But still the info is the same - hardly any
grants for starting a for profit business.
Most of the federal grants are given to specific target groups with
specific requirements (e.g. minority business owners involved in
transportation related contracts emanating from DOT - Grant#20.905
Disadvantaged Business Enterprises Short Term Lending Program
Grants are also often given to non profit groups or organizations
involved in training or other similar activities (grant 59.043 Women's
Business Ownership Assistance that are given to those who will create
women's business center that will train women entrepreneurs
For private grants, you may want to check the Foundation Center's
Foundation Grants for Individuals Online
http://gtionline.fdncenter.org
. It's a subscription based website
($9.95 per month) but their opening blurb only says that the database is
ideal for "students, artists, academic researchers, libraries and financial
aid offices." Entrepreneurs are apparently not one of them, so I take it
they also don't have listings of private foundations who give grants to
would-be entrepreneurs.
About the PowerHomeBiz.com Guide:
Isabel Isidro is the
co-founder and VP-Managing Editor of PowerHomeBiz.com, an online magazine
for home business entrepreneurs that provides guidance on starting, running
and managing a home-based business.
The opinions expressed in this column are
those of the author, not of PowerHomeBiz.com.
Users
should not treat the Guide's response as legal, accounting, or
professional advice as all answers are intended to be general in
nature. Such advice can only be properly given by qualified
professionals who are fully aware of a user's specific geographical areas or circumstances, such
as
an attorney or accountant.
