Grants for Your Business: An Exciting Truth Amongst Lies & Misinformation
Written by Dave Lavinsky on Tuesday, April 21, 2009
As you may have figured by now, I'm on a quest to help all business owners and entrepreneurs get funding for their businesses.
I believe that all entrepreneurs who are willing to invest their time and their lives into starting a new or growing an existing venture should be given the opportunity to do so. Clearly, their business concept must be viable, their business plan must lay out a pathway to success, and they must invest the resources in learning how to raise capital. But once these conditions are satisfied, I find it very saddening when entrepreneurs put in a solid effort but are still unable to raise the capital they need.
In my quest to solve the eternal funding issue, my team and I have been working on really figuring out an elusive form of capital: grants.
Grants, as you may know, are given to thousands upon thousands of companies each year totaling billions of dollars. Furthermore, they don't need to be paid back. So, on the surface, grants are a really interesting funding source for businesses. As you can imagine, when we started putting together our report entitled the "Step-by-Step Guide to Raising Capital for Your Business from Grants," we were really excited.
But, the excitement faded a bit when we learned about all the lies and misinformation there is out there regarding grants. Let me tell you the two that frustrated me the most.
Myth 1: Grants are offered to businesses owned by women, minorities and the disabled. This statement is 100% FALSE. In fact, NO grants are set aside specifically for small businesses run by women, minorities and the disabled; all grants from the federal government are open to a multitude of groups which include these businesses.
There ARE loans and government contracts reserved for women, minorities and the disabled, but NOT grants.
Myth 2: Grants for businesses are available from both the government (federal, state and local) and private and public foundations.
This too is false. The truth is that with few exceptions, grants offered by private or public foundations are NOT available to for-profit businesses. They are exclusively reserved for non-profits.
There is a silver lining here however. While we have found all the misinformation discouraging, we have uncovered that billions of dollars ARE given to small businesses each year via federal, state and local government grants, and more importantly, we've uncovered the formula that entrepreneurs and business owners can use to gain these dollars.
My team and I have been hard at work finishing the "Step-by-Step Guide to Raising Capital for Your Business from Grants." The report is now available, and you can download it here.
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