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How To Get Government Grants for a Small Business

Q. I want to start a small business, but I have no money. I have been hearing about government giving money through grants. How can I get grant money to start a business? Are there resources on the Web where I can get this information for free? I tried to search for grant money on the Web and I all see are websites that want me to pay to get the information that I need. Thanks. Shirley (New Jersey)


Advice by Isabel M Isidro

Dear Shirley,

Thank you for visiting PowerHomeBiz.com and subscribing to the weekly newsletter.

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.

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.

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 o 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."

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. 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.

http://www.cfda.gov  http://www.grants.gov  http://gtionline.fdncenter.org  http://www.powerhomebiz.com/vol66/grants.htm  http://www.sba.gov/expanding/grants.html 

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The Government has created a portal to help individuals who need benefits because of life events. Visit http://www.govbenefits.gov 

Use the drop down button DO YOU NEED BENEFITS BECAUSE OF A LIFE EVENT? Choose the life situation best applicable to you and then see if you qualify for the available government assistance.

Forget grant money - there's hardly any money for individuals. Go to the Catalog of Federal Domestic Assistance (CFDA) and Grants.gov - these are two sites created by the federal government to provide transparency and information on grants. But you'd be hard pressed to find any grant that would support individuals.

What type of licenses does a Janitorial company require??

It depends on where you are located, if you are going to lease your own office or will you simply work from home, and the requirements of your city/county business offices.

If you are in the Los Angeles area, for example, you will be required to get the following if you are starting a janitorial business (if it applies to your situation):

Business License (Business Tax Certificate) Burglar Alarm Permit Fire Department Permit - Fire Protection Land Use Permit Zoning Approval Fictitious Name Filing (DBA) Air Tanks Permit Corporation, Company or Partnership Filings (if considering) Industrial Activities Storm Water General Permit Sales & Use Permit (Seller's Permit) State EPA Identification Number

If you have additional questions, please feel free to email us. Again, thank you for being part of PowerHomeBiz.com

Isabel Isidro
Managing Editor
PowerHomeBiz.com


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.

   

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