Posts Tagged ‘What are US government grants and loans?’

A Quick Course on Government Grants and Loans

admin - Monday, 20 April 2009 04:49

You’ve scoured the internet for hours, looking for an effective and reliable source to give you some information on grants and loans offered by the United States government. You have stumbled upon dozens of references and web sites, but none of them have enough information about what these grants and loans are exactly, and how they are obtained. 

Your tiresome searching, that up to now has still been fruitless and unsuccessful, ends here. Read on to learn some useful information on US government grants and loans.

What are US government grants and loans?

Let’s begin with loans. Government loans are like ordinary loans, and cater to a wide variety of needs, from business startup loans, disaster relief, housing, veteran, agriculture to student loans. The US government has set up a site specifically about the loans that its many departments offer. The site can be found at www.govloans.gov. In this site you will find agencies that offer different kinds of loans. You will also be able to search through loans that are currently available, so that you may find the one that best suits your financial needs.

A federal grant, on the other hand, is a form of financial assistance given by a federal agency to a beneficiary, whether it is a private citizen or an organization, for the purpose of carrying out public support or stimulation authorized by the law of the United States.

Every year, over 1,000 federal grants are offered by 26 federal agencies. These grants fall under different categories, such as:
Agriculture
Energy
Arts
Regional Development
Education
Environmental Quality
Food and Nutrition
Health
Community Development
Humanities
Business and Commerce
Housing
Disaster Prevention and Relief
Information and Statistics
Law, Justice, as well as Legal Services
Natural Resources
Science and Technology
Employment, Labor and Training
Social Services and Income Security
Transportation

Grants can also be categorized into two, namely general purpose, or operating support grants, and program development, or project support grants. General purpose grants can be used on the general expenses on operations by the recipient, while project support grants can be used on a specific set of related activities. Such grants require that a project set explicit or specific objectives and a predetermined cost. A project support grant, being much more specific than the general purpose grant, is restricted to be used on the predetermined project.   

The United States government has set up a website specifically about the grants that its various agencies offer. You can visit the site at www.grants.gov.


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Government Grants for Women

Women owned businesses are growing at a rapid pace.  More women than ever before in history are going after their dreams and starting their own businesses.  Money or lack of money can be a huge stumbling block to getting a business off the ground.  The funding search can be a challenge and most women just do not know where to start. Goverment grants are being awarded to women and helping women all over America become business owners.

There are two types of business fundings available to women.  There are business grants awarded by entities that want women to succeed.  Not for profit groups offer grants, goverment agencies and for profit companies are just a few of the types of entities that offer help to women.  Grants do not need to be repaid.  And there are loans. The Small Business Administration is one of the goverment agencies that support women owned businesses and are there to provide reasonable short term loans to get you on your feet.

Grants can be used for supplies, advertising, expenses, paying employee salaries, equipment, etc.  Your business will grow and the funds can be used for a multitude of needs that you may encounter.  A solid business plan is a must with any funds that you choose to pursue.  When you apply for the grants, you will also be required to turn in a business plan to show what the money will be used for and what your long and short term goals are with the business.  These applications are not difficult to fill out and business plan software can be found online or at your local library.  Many people shy away from grants, thinking that they are too hard to figure out. This is simply not true. Billions of dollars are available for grants each and every year and many grants go unawarded because of the lack of applicants.  More women are encouraged to take advantage of the help that is being offered.  Also, having a well thought out business plan will only help your business succeed and help you identify your needs before asking for a grant. You don’t want to ask for too little money or too much.  Your business plan will help you ask for the right amount and let the entity that you are applying to, know that you are planning a successfull business.

Women or minorities will find that there are thousands of grants being awarded daily to the recipents who apply for them.  You will want to look for the requirements for each of the grants you are applying to, to make sure it is a great fit.  A women owned grant is usually asking for the requirement that a women own at least 51% of the company. You can have male partners, but it will usually require that a women own just over half the company. You will need to be a U.S citizen, a tax payer and your credit score will usually have little bearing over the decision. The entities issuing the grant will want to see a business owner who is prepared to go into business and is enthusiastic about the business idea.  They want to see a women who has done her homework!

You will want to apply for multiple grants and search on a local and state level as well.  Many entities or agencies that are giving the money away, like to know you reside in the same state as they do.   Research grant websites carefully.  You will want to look for websites with extensive help, great directories and up to date information. Those that help you with a business plan template will help you too.  Websites like  www.WantFreeMoneyGrant.com are a great resource and proven website that will provide up to date information.

You are well on your way to finding the grant that will suite you!  Apply for the grants you are looking for and join the many women who found success and help through these goverment grants.