There are federal grants and loans that can be used specifically for starting up or expanding small businesses. Currently, the government does not offer any federal grant money but they have several loan programs, which are still available. These programs can be accessed through your state government. As with any federal funding options, you will need to meet eligibility guidelines in order to apply for these loan programs.
Where should you start?
There are several offices that you should investigate when you are looking for grants. As a matter of fact, you should look for opportunities that are available from special district governments, city governments, and state governments. There are also several public and private institutions that are partnered with the SBA and offer funding options to start up your own empire.
Are you qualified to apply there?
To be a qualified applicant, you must meet the size requirement for a small business. These size requirements are: 28.5 million for heavy construction industry or other general industries, 0.75 million for agricultural companies, 100 employees for the whole sale trades, and 6 million for retail industries and service industries.
And now, what should you do for the next step?
The main federal grants and loans are only available in the form of loans as currently there are no grants available. The state governments offer 4 main loan programs, which are different from each other depending on your business needs. The main programs include the 8(a) program, microloan program, certified development company (CDC) program, and the basic 7(a) loan guaranty. The Small business associate will place you in contact with organizations that provide these loans such as financial institutions, organizations, and other SBA partners.
A very flexible loan that can be used for many general purposes is the Basic 7(a). This program is the first one you should try to apply for a small business funding. It can be tailored specifically to your needs as there are many different variations in this choice.
The CDC option is specifically designed for economic development within the community and is given by non-profit organizations. There is a specific CDC office for geographic locations within the US. The micro loan is a loan of up to $35,000 for non-profit-child-care centers and small businesses. This money is to be used for equipment, furniture, fixtures, inventory and other supplies.