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As you begin your business, research the different loans and grants that you business may qualify for. A business start up grant may be exactly what you need to get your business up and running and with the proper tools. Business start up grants are the number one source of funding that the US Federal Government offers and supplies to new and existing businesses. Beginning in 1953 the Federal Government's Small Business Administration started assisting small, new and existing businesses develop the product and service that they wanted to provide.
Contact the Small Business Administration office that is located in your community to find the business start up grant that will help your business succeed. The grants that your business may qualify for are:
· 7(a) loans
· Low Documentation Loan or SBA Low Doc
· SBA Express
· 7(m) micro loan
· Cap Lines
· 504 loans
The 7(a) loans is the most common used business grant used by small business and offered by the Small Business Administration. When you business is qualified for the 7(a) loan, your business will be able to purchase property to expand your business, machinery, office buildings or capital use. Once your business is able to expand and grow, the profit made will increase and your business will continue to grow with financial strength.
A 7(m) micro loan is a small short term loan that can give your business up to $35,000 to borrow. The typically micro loan will have a balance loaned at $13,000 and will have a term of 6 years. The interest rate that is associated will be determined by the grant that you business receives. On a micro loan, the monthly payment will be small enough that your business will have a stable cash flow to continue to purchase materials for your business.
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