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Business Startup Grants

Updated on December 29, 2012
Before wasting time looking for business startup grants, find out the truth about them.
Before wasting time looking for business startup grants, find out the truth about them.

Business Startup Grant

Individuals are always hoping a business startup grant will finance their dream business. Usually something along the lines of a night club or house flipping. Sadly, people do not think it through and hope that money is just waiting for them to claim.

Why Business Grants Persist

The reason conmen still pitch the idea of a business startup grant is that it has the appeal of free and easy money. This is an age old problem that takes different forms- investment opportunities, the lottery, and yes grants. As long as people are willing to hear that free and easy money is just waiting for them, people will continue to be suckered into believing that there is free business startup grants.

There Are No Business Startup Grants

It would be best if people just get out of their minds that there is a business startup grant in their future. They do not exist. Consider that an organization like Kiva.org provides people in third world countries small LOANS of tens or hundreds of dollars to get a business started. And even Kiva wants its money back with interest. Why would anyone give a US citizen thousands of dollars of startup business financing and not expect it back with interest?

There Are Business Grants

There are business grants but they are not for start-ups. They exist for businesses to perform a function for the federal government. It is better to think of them as contracts. I have often wondered why the feds do not just call them government contracts. My conclusion is that most grants that are open to for-profits are then also open to universities, not-for-profits, and municipalities. These organizations are accustomed to grants but not contracts. Yet, for all practical purposes it is the same thing. A contract is drawn for the organization to perform a duty in a certain period of time for a certain amount of money. Notice there is no pot of money to do whatever business a person would like and realize that the money that is available is competitive.

What May Exist

The only money I have ever seen that is freely available for a business start-up has been in a business plan competition. Again, this is competitive money and to fund a specific business plan. But it is the closest thing found to a business startup grant, because capital given for the start-up does not need be repaid. Unfortunately, these competitions are few and far in-between; also, they are often for a specific population like college students.

Your Business Grant Thoughts

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    • SakiSan profile image

      SakiSan 8 years ago from Kansas, United States

      Great Information!

    working

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