A grant is a direct financial contribution, which is made without expecting repayments. Grant for small businesses are required while starting a new business or expanding existing business.

Though poor management is one of the main reasons due to which new business are unsuccessful, the other reason is inadequate or improper financing. Whether one is starting a new Grant for small businesses or expanding an existing one, sufficient startup capital is required. Location, future plans, type of business and amount of financial aid need are factors which decide the type of funding. Apart from a strong business plan, you may not qualify for bank financing due to lack of sufficient collateral, a down payment, or a business track record.

Business grants are common among entrepreneurs who have limited funds and access to capital. Many development agencies offer direct small business grants and other types of financial assistance to promote and aid entrepreneurs in starting or expanding a Grant for small businesses. The different types of grants that are offered include - individual grants, business grants, government grants, and more.

Small business is a significant part of a countrys economic growth, and the government provides the necessary financial resources to facilitate this. Governments of various countries provide serious considerations to small businesses, especially those owned by minority groups and by women.

The U.S. Federal Government is the largest provider of financial assistance and recognizes its obligation to promote and develop small business firms and bring them into the mainstream of American economic society. The U.S federal government offers a collection of very attractive loans to start or expand a small business.

The financial assistance provided by the U.S government includes small business grants (non-repayable), low or no-interest loans (repayable), tax refunds or credits, guaranteed purchases, financial insurance against business risks and repayable contributions. The U.S Federal government provides this money to help existing small business owners and those who want to start their own business, change their lives and achieve financial independence.

Grant application tips

One must have a chat with the Grant for small businesses provider about the chances of success before doing too much. Know your grant officer and his/her constraints, budget and concerns with approving your grant. One must provide complete and accurate information in the application form, while requesting for a loan. An incomplete application may delay approving the grant, so commit enough time to the application and as it is worth the investment.

Initially, have a look at alternative sources of funding such as loans, personal credit lines, friends and family as getting grants is usually very competitive. Also analyze if the business funding required now for expansion can be delayed by a year or so.

Eligibility for a business grant can be based on location, sales revenue to date, years in business, sex, race, and purpose of funding.

Demonstrate your understanding of the business by prepare a good business plan with appropriate research and figures. You can also highlight how the money will bring the benefit the government agency wants.

A consultant can add credibility to an application process. One can also consider get involved in partnerships. Public/private sector partnerships are strong and sometimes essential.

Make regular contact with the grant office in a professional, non-invasive manner. There are many places which provide free information on small business grants. Additionally, to locate such organizations which provide information on small business grants, one can use the Encyclopedia of Associations, a reference book that is available in many larger libraries.

The Federal Register provides free information on small business grants. Federal Register is the U.S government's daily newspaper and provides details on the continually changing federal grants.

The Americans with Disabilities Act (ADA) provides equal opportunities for individuals with disabilities in public accommodations, employment, transportation, State and local government services, and telecommunications. It gives federal civil rights protections to individuals with disabilities.

FedBizOpps is another great resource for finding free information on small business grants. Besides giving grants, the federal government also gives contracts to some businesses.

The Small Business Administration (SBA) offers several loan and technical assistance programs, such as special programs for women, minorities and the addresses of lead agencies in each state and U.S. territory. SBA's website describes details on a range of fact sheets, program information, loan applications, regulations, suggestions on inexpensive software and guides to state and local resources. SBA has a toll-free number for inquiries 1-800-UASK-SBA (1-800-827-5722) that is available from 8:30 a.m. to 6 p.m. eastern time, Monday through Friday.

The website WomenBiz.gov, links women-owned businesses to information on federal agency procurement programs and contracting opportunities.

The Catalog of Federal Domestic Assistance (CFDA) provides access to a database of all Federal programs available to State and local governments in the United States.

Many small businesses receive government funding for different purposes, including grants and subsidies, equity financing, relocation grants, tax refunds etc.