About Grants to Start a Business

by Contributing Writer

Overview

Despite what many new business owners would like, the federal government does not give out grants to start or expand businesses. It does give grant money to state and local governments specifically for economic development. It is from these agencies that businesses can receive financial assistance.
Finding Grants

Using the Small Business Loans and Grants Search Tool on business.gov is a great starting place to look for grants that match your type of business.

Grants May Not be the Answer

Getting free money from the government to start a business is not a common occurence. Low-interest loans or venture capital financing are more likely.
Low-Interest Loans

The Small Business Administration offers financial assistance to business start-ups by guaranteeing loans made through banks. The 7(a) Loan Program is the most flexible.
Venture Financing

If your business has good potential for large profits, it is possible you can find a venture capital company to invest in exchange for partial ownership of your company.
What You Need to Get Financing

To apply for grants or loans, you must have a business plan and all your financial records in order.

Overview