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Federal Business Grants - The Ins & Outs

Are you looking to snag yourself one of the many federal business grants out there? Don't know where to start? Learn why they're given, how they're funded and how you can qualify for your own federal business grants.

The "Skinny" on Federal Business Grants

Federal business grants are given all the time. Federal grants are given every year for just about every reason that you can imagine. Grants are given for small business start-ups, preserving historic monuments, continuing education, and art. These are not the only grants that are offered, but you get the idea. For every million grants that are applied for each year only a few hundred are actually granted. Some of them are free grants, which mean that if you receive one of them, you don’t have to pay for it. Other grants are more like loans and require repayment with interest.

Federal business grants and government grants are funded in one of two ways: the money comes from the taxes we pay as well as from private foundations that must give five percent of their assets to maintain their tax-exempt status. If you are a US citizen, and are 18 years or older, you have a right to many of these federal grants. Government grants don’t require credit checks or collateral to receive and they don’t ever have to be paid back. Let me begin by saying that very, very few government grant programs actually provide funding for private businesses.

There are other grant programs you can apply for in this circumstance such as The Ford Foundation and apply under their Other Program Related Investments option which is only for those projects that will advance the cause of philanthropy. They state plainly that " Most Foundation grants to individuals are awarded either through publicly announced competitions or on the basis of nominations from universities and other nonprofit institutions. In all cases, recipients are selected on the merits of their proposals and on their potential contribution to advancing the Foundation's program objectives." If you are to continue seeking foundation grants, then the term you need to look for is "Other Program Related Investments."

The federal government will and is obligated to provide certain amount of funding every year. You are of course going to have to provide a detailed proposal request and business plan. The best part is that you don’t have to have stellar credit or perfect history in order to apply and be accepted. The federal business grants are a great way to build up your business without all of the pressures that getting a loan can give. Especially since you don’t have to pay the money back and worry about the interest adding up.

You can use your federal business for things like equipment, start up costs, supplies, and more. Just about anything that you would use for a business, including marketing can be done with this money. The more detailed your proposal is the better your chances get of being approved. As long as you mind your P’s and Q’s you should be fine.

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