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Need a Grant For a New Business? Here’s What You Need to Know!

Starting a business of your own is always an exciting thing, especially if you have not heard of how to get a grant for new business. Most people love being their own boss. In some cases, you know you have a great business prospect. But financing it is the only problem. That is the reason most people are afraid to pursue their dreams.

But hey! Maybe there really is a way out! Did you ever think of applying for grants for your new business? Business grants are offered to those who are interested in getting started with a new and promising business. These grants aim at helping these enthusiastic entrepreneurs get started.

As opposed to typical loans, a grant is free money! Which means you won’t have to pay it back. No wonder millions of people are after new business grants! Many small business owners found such incentives truly useful. For some entrepreneurs, grants are just the ‘extra’ push they need to take off with their business.

So who offers the grant for new business?

The most prominent source of small business grants is your local government. But a number of business groups or private organizations also offer grants for entrepreneurs. As a matter of fact, the federal government does not directly offer grants. Grants are usually offered by your state’s government or various government institutions.

What do you do to obtain such grants?

For getting your hands on these grants you need to qualify in the first place. And once you’ve done that, you are entitled to apply for or achieve a reasonable amount of grant money via those respective departments of the government.

What are the key eligibility criteria?

The bottom line is that, when you want grants for your new business, you have to be 18+ (in terms of age, of course) and you must be an American citizen/legal resident to apply for a government grant in the US.

The amounts of grants sanctioned by the government can actually vary. But can be anywhere from $500 to $50,000 generally. Fortunately, when you’ve applied for a new business, this amount might well exceed what is mentioned.

Another thing worth mentioning is that you have to write a solid business proposal as part of the application process. You usually have to submit the business plan for getting the grant. It has to briefly explain how you’re planning to run your business, and how you’re planning to utilize the funds.

Your proposal generally has to answer your current financial conditions, the projected cash flow or ROI, insurance coverage, methodologies of implementing the plans and your back-up plans – just in case your business fails. If your proposal is a sound one, you should not have problem getting a grant for new business.