Small, medium and large businesses need money to pay for daily operating expenses and expansion projects. Business grants are one option to help businesses meet those needs. Business grants are monies given to a nonprofit organization or profit oriented company that does not have to be paid back. It is free money for the business that is required to use it based upon the terms of the grant.

Receiving business grant money is a great way to start a business. Many new businesses go out of business simply because they did not have enough capital to pay the bills, to purchase products to sell or to buy enough space to run their new businesses. Unfortunately these businesses file for bankruptcy within 3-5 years of operation. However, obtaining a business grant will give a new business the opportunity to purchase a building, equipment and inventory needed to get the company off the ground. There are many grant programs available to help new entrepreneurs who have a feasible and developed business plan.

There are also business grants available for businesses that plan to expand. They are especially for those businesses that plan to expand in areas where jobs are heavily needed or products and services are in demand. Grant programs are eagerly searching for the right companies in which to invest. Businesses owners should constantly network with persons who are on grant committees to inform them that they are in need of funding for special projects. Without grant programs many companies would remain stagnant because they would not have the monies to expand.

Although the federal government does not provide business grants to for-profit organizations, there are other governmental agencies that may. The state and local government may provide business grants. Also, there are nonprofit organizations that exist for the sole purpose of offering business grants. On the other hand, nonprofit organizations can obtain grants from a variety of sources. Federal, state and local government agencies offer grants to nonprofits who are making a difference in the communities they are serving. Major corporations also provide grants for literacy, poverty and abusive problems.

One of the most challenging aspects of starting or operating a business is managing capital, and at times it can seem virtually impossible. The great news is that there are a wide variety of business grants available to qualified applicants and they can actually be used for much more than most entrepreneurs realize.

Some business grants are designed to provide funding for startup companies and the money offered can be used for any acceptable necessary purpose. These funds are most often used to purchase inventory or equipment that will be required for the business to actually open, but there are even programs available that help provide assistance buying or leasing an actual location. In addition, the money can be spent on marketing and advertising activities. Startup grants are perhaps the most lenient category of business grants and can be used for practically anything.

Many business grants are available that provide funding to companies that have a need for additional employees. Organizations that have never actually found it necessary to process payroll can often qualify for these types of business grants to help hire an accountant or payroll processor. Many additional funds are available to small businesses that will be creating job opportunities for individuals within their geographic area and more benefits may be taken advantage of as well.

Business grants are not just limited to new companies and many small businesses utilize various types to help expand an existing organization. Whether the expansion is going to require additional space or even growth into different areas, there are business grants designed to help offset some of the costs. Marketing and advertising campaigns are often very expensive and may be put off due to budget constraints, but business grants can help with an infusion of capital designed to take a business to the next level.

Some business grants are intended for companies that need some immediate financial assistance due to an unmanageable debt load or other difficulties. These programs can help a company avoid going out of business and the capital can be used for any necessary purposes associated with debt repayment or settlement issues.

There is no doubt that entrepreneurs have the chance to make all their dreams come true, and business grants often provide the additional help that is needed to clear some frustrating hurdles.

Many people have good ideas for a business, a way of filling a market need with a supply of a desired product. For example the pet toy, Zhu Zhu, became a best seller during the Christmas seasons, with sales exploding all across the country in toy stores because the toy fulfilled a need little children have for a hamster. Parents could delight their child with a hamster robot for $10 that would save them the bother of the care and feeding of a real hamster.

Some of these people are ready and willing to act on these ideas.

Unfortunately, all business ideas cost money. It costs money, often a large amount of money, to build prototypes, hire people, rent a business office, and conduct a sales and marketing strategy.

Although entrepreneurs can borrow money from friends and relatives, they are now obligated to return the money after they have turned a profit. What happens if the business fails because it is under funded? Similarly, entrepreneurs can borrow the money from a bank, this time enough money to stay in the game longer, but they have to pay high interest on it. Finally, entrepreneurs can find angel investors who will back them up, but while this money is sufficient in amount and does not come with an interest rate, the price is giving up more than half to three-quarters of the ownership of the business.

However, there is a fourth and final solution: a US business grant.

Anyone who is a citizen or a legal alien can apply for a US government business grant.

Apart from receiving money that is free to use for their business, the entrepreneur is also given free legal and business counseling from former industry experts, a service that could well run into $10,000.

To qualify, the entrepreneur has to fulfill the requirements of the grant.

For example, the grant may be offered to start a business, grow an existing business, hire disabled people or minority members, or be used to fulfill the needs of a government contract.

Building your own business is both exciting and intimidating. It’s exciting because you get to be your own boss and earn as much as you can without the ceiling of a regular salary. It’s, likewise, intimidating because you may have the right ideas, partners, equipment, skills and products for an exploding new market but you don’t have any startup money.

How do you find someone who is willing to invest in your vision? Even if you do, you will encounter problems. A bank will charge you a high interest rate for borrowing their money and an angel investor will want to own a huge percentage of your business as part of the deal.

However, the US government can help. It can offer you a business grant from either a federal or state or local county level.

Unlike money you might get from other sources, a business grant by the government not only gives you the money without strings attached but it also provides you with $9,000 worth of consulting services for legal and business issues at no charge.

Business grants are available for starting a business; growing a business; buying a ranch; hiring young, disabled, or minority group members; and fulfilling a government contract.

Applying for a business grant begins with identifying exactly what type of business you are trying to begin or grow, then seeking funding for it from one of many government sponsored programs. Sometimes you can get these quite easily and sometimes you have to jump through a lot of hoops to qualify.

Once you know what you want and once you have found where to get the money from, your next step is to ask for an application, get busy in writing a very comprehensive and impressive grant proposal, and submit it well before the deadline. The earlier your submission, the better because usually the money goes to the early bird.

You can be successful in getting a business grant when you can apply these three ideas:

Know exactly what you want to do in business.

Know where to look for the business grant that you desire.

Know how to write a grant proposal that is cogent and clear.