Types of Federal
Grants and Assistance
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Simple
Growth Money - Usually direct grants and
you are not required to pay them back. Business Consulting - The Department of Economic
Development knows that new businesses have great start-up management costs. Free
management advice is offered on almost any subject.
Business Site
Selection - State specialists are available
to help you locate the best possible location for your business.
Management
Training - Most states will assign specialists to work with you one-on-one in
management training.
Employee Training
Assistance - This program offers Federal money to train your employees. Most
states will pay 50 percent of salaries for six months, or more, to train workers. Money is
also available to send employees to school for a limited time. |
Research &
Development - R&D money is available to attract high-tech related
companies. A small computer software company, for example, could use state university
facilities or the expertise of marketing professors.
Program
Consultants - States have highly trained management consultants who will locate
Federal grant programs and help you apply for them.
Forms and
Documents - State professionals will help you apply for permits, licenses, or
any other legal documents required to start a business.
Venture Capital
Financing - Money that you do not have to pay back, but you would normally have
to give up part of the equity in your company in order to receive financing. Most states
have their own venture firms that invest in high-risk companies.
Locating
Investors - Many states will help you find wealthy investors willing to support
new businesses. This program is in such demand that investors must usually pay a fee to be
included on the lists.
Minorities and
Women - Special grants are available in most states for any business that is
being started by minorities or women.
Low-Interest
Loans - The state may raise money through industrial revenue bonds to buy your
fixed asset equipment. The public, which invests in these bonds, do not pay taxes on the
earned interest, and a business can get low interest loans. The state does not guarantee
that an investor will get his/her money back in the event that the business fails. If the
state issues a general obligation bond, the public investment is then guaranteed. The
state also will make direct loans at low interest, or even co-sign a commercial bank loan.
If the state co�signs a loan for you, it may subsidize your interest, thereby cutting the
already low interest rate in half.
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Writing a grant proposal
can be as simple as following the directions in your application packet. Add a little
flair and your grant application can stand out, making your chances of selection better. |
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