Business Grants - A Minority Overview
Business Grant Minority
The internet and television have plenty of offers saying they know how to get you a business grant, minority based. The idea being that free money is out there for the purpose of starting a business, any business. Working at a business development center I have heard people say they want business grant, minority money for nightclubs, escort services, house flipping, etc. It astounds me that people think there is free money readily available.
Dispel The Business Grant Minority Myth
In American it is obscene to consider that free money is available to start a business when foundations like Kiva and Grameen Bank give microfinance loans to destitute third world people. These loans may be between fifteen to a few hundred dollars, but they expect repayment. It is excessive indulgence to think that there is thousands of business grant minority dollars out there just for the asking, never to be repaid.
True Business Grant Minority
The federal government does have business grant minority opportunities, but they are not to start businesses. Although, these grants come from organizations like the Department Of Commerce, Small Business Administration, or Minority Business Development Agency they usually fund technical assistance for small business. Sometimes they can fund loan funds from community development organizations, money to be loaned out and repaid and loaned out again. However, these business grant minority opportunities are not funding anyone's business ideas without being repaid.
The closest to free business grant minority money is to look for a business plan competition. They are not numerous but they do come around. Unfortunately, they are still competitions, so that will mean only one winner.
Business Grant Minority Money Alternative
There are a number of business loans for minorities distributed through out the United States. There are regional and local loan programs, as the federal government cannot discriminate. However, the federal government does provide a great deal of technical assistance to find financing for a business through business development centers and technical assistance centers. These business assistance centers will also have relationships with the minority lending programs in your area along with conventional financing. There could also be programs for other specific demographics like women or veteran owned businesses. Sometimes, these programs will also offer some debt forgiveness under certain criteria, like prompt payment of the first half to the first two-thirds, the remainder will be forgiven. Other times, the interest could be dropped. This would be just like free business grant minority money, at least for part of the desired amount.
Not just for financing a business, but business in general it is best not to look for shortcuts. If you have the desire to start a business, write a business plan and start looking for conventional financing. Hoping and looking for business grant minority opportunities will leave you poorer and no closer to fulfilling your dream of starting a business.
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