Q:

Does the government provide grants to start-up businesses?

A:

Quick Answer

The United States government does not provide grants to start-up businesses. Because grant money is funded with taxpayer dollars, strict rules and guidelines determine how that money is disbursed.

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Full Answer

Businesses who are looking for grants may want to turn to state and local programs, as well as non-profit organizations and other groups that provide start-up funding. Some states provide grants for specific types of businesses, such as expansions of child care centers, development of marketing campaigns to promote tourism, or creation of energy-efficient technology. However, these grants are not always free money and usually require the recipient to combine the grant with another type of funding, such as a loan. The amount of money available often depends on the business type and the grantor.

Grants.gov is a website run by the Small Business Association that has the authority to make grants to educational organizations and non-profit groups. Available grants and other announcements are typically posted on the organization's website.

If a business owner looking for a grant does not fall into the specialized businesses for which grants may be available, federal and state agencies may be able to assist in helping set up venture capital financing and loans from commercial lenders.

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