If it Sounds Too Good to be True

"Free Government money to start your small business!" We frequently receive requests for information about grants for small business start-ups. Every entrepreneur "knows" that there is a grant for their particular business; they've heard from a friend or seen on television that government money is just waiting to be uncovered by entrepreneurs. There is of course a grain of truth to these ads, some government grants are available for small business - but they are designated for very specific programs such as highly technical areas of industry, schools and training programs and government agencies. The monies specifically designated for the support of small business are administered through the Small Business Administration as loans. Most other government grants are set aside for state and local governments and non-profits to provide technical assistance to small business. For information on federal government grants, see the Catalog of Federal Domestic Assistance.

Private foundations fund the work of non-profit organizations, but rarely private business. If you are developing a non-profit, information about private foundations can be found at the Foundation Center. If you need assistance in developing a grant proposal, see the Grantsmanship Center.

Other information about small business financing and start-up assistance can be found on our web page. See "Getting Started" and "Finance."

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SBDCNet Team

Gloria Allen
Carolyn Ellis
Peter Morales
Sarah Barrette
Paula Fantegrossi

Guillermo Barreto-Vega
Perry Byers
Linda Hernandez
Jane Nolasco

Judith Johnson
J. Eric Lomeli
Juan Cueva
Armida Hernandez

Co-Editors: Carolyn Ellis & Judith Johnson

Please email us or call us at 1-800-689-1912 if you have any questions. Feel free to pass this on to other SBDC Business Advisors. If you are not currently subscribed to SBDCNET Connections, sign up on our website under "SBDCNET E-Newsletter."

This U.S. Small Business Administration (SBA) Grant is funded by the SBA. SBAs funding is not an endorsement of any products, opinions, or services. All SBA funded programs are extended to the public on a nondiscriminatory basis.