Many business myths and urban legends are essentially harmless, but some encourage and support risky or useless practices while others serve to promote outright scams. Enterprises that sell information and assistance purported to help business owners receive government grants are often plugged into the latter category.Here, for instance, is what Grants.gov, a government clearinghouse for federal grants, has to say: "We have all seen them; late night infomercials, websites, and reference guides, advertising 'millions in free money.' Don't believe the hype!" The site stresses that no grants are available for personal financial assistance, including loans to start small businesses, and directs readers to other resources, such as the Small Bus iness Administration's loan guarantee program, for assistance of that sort.
Yet despite the federal warning, such "millions in free money" claims continue to be made, usually by people offering to sell directories, instructions or assistance in applying for federal start-up grants. At MyGovernmentGrants.com, which bills itself as providing "America's #1 best selling grant search information," visitors are advised: "Anyone thinking about going into business for themselves, or wanting to expand an existing business should rush for the world's largest "one-stop-money-source" where FREE MONEY to start or expand a business is being held for you by the Federal Government."
The reality is somewhat more complicated than either Grants.gov or MyGovernmentGrants.com would have it. There are, in fact, some grants available to small businesses, including even startups. For instance, the Small Business Innovation Research (SBIR) grant program awards money to small, high-tech businesses that are developing technologies of interest to the government. These can in some cases include startup businesses. The SBA's website has a useful directory of government entities that award grants.
If you look at all these resources, you will soon become aware that while grants are available, including some to small businesses, the requirements for getting SBIR and other grants are so tight that, for all practical purposes, they do n't exist for any but a tiny handful of small firms. And, generally speaking, government grants that are nominally available for small business applicants, in fact are practically only going to be won by non-profit organizations, educational institutions, research laboratories and the like. And they are usually for highly technical, specialized, cutting-edge services or products. The chances of a typical would-be entrepreneur getting free government money to, say, start a landscaping business are nil.
So if you need help financing your startup, by all means look into the possibility of guaranteed SBA loans to help http://www.vikinggroupinc.com/technical-data/viking-fire-sprinklers you get underway. Those are available and have funded countless new businesses. But waste little if any time looking through Grants.gov for possible grants. An d give no money to anybody who promises to help you get one.
Image courtesy Flickr user Vectorportal, CC 2.0
2010 CBS Interactive Inc.. All Rights Reserved.
http://www.cbsnews.com/news/free-government-money-to-start-a-business-dont-bet-on-it/
No comments:
Post a Comment