Small Business Loans

Small Business Grants and Loans

In some ways, it is easier to obtain small business loans than small business grants, because in the former case the grantor does not have check up on your ability to repay. On the other hand, agreeing to pay back a loan confirms your sincerity, and, provided that you qualify for a loan, you will probably get one too. In the final analysis, your decision whether to apply for small business grants or loans depends on your personal circumstances, and where you are most likely to succeed.

Business loans and grants are available from all three tiers of government, namely federal, state and local agencies. Programs include low-interest loans that the borrower must repay, venture capital investments, and economic and scientific grants.

Small Business Grant and Loan Resources
Business.Gov is the official link to the United States government in the field of federal assistance to business, and at their website, you can learn about loans and grants straight from the federal horse’s mouth. They have a neat search page where you can find business loans, grants and other financing opportunities. You just have to tick a few boxes and select your state before a range of options will appear. Note that the government does not make loans to small businesses itself, but it does partly guarantee loans made by banks and other lenders.

Also, the federal government only provides grants to non-profit organizations and selected educational institutions. Some state governments do provide funding, although terms and conditions vary widely and you may be required to match a grant dollar for dollar.

Information about seed and venture capital is available at http://www.business.gov/financing/venture-capital/. Venture capital financing is highly selective and directed at firms in early start-up in the biotechnology, information technology and manufacturing fields. Do not be scared to apply if you feel that you have a chance here. Many market leaders started out this way.

There is no need to feel alone when seeking finance for a business venture. Between grants, guaranteed loans and venture capital you are bound to discover a solution to your need for a small business grant or loan.