The Truth About Grants & Loans

How can I get a grant to start or grow my business?
Grant funding for small business is generally a myth and does not exist to fund private ventures. This is the most common myth, primarily due to the many "services" advertised for a fee that will help you find a grant.  However, the U.S. Government does not have "billions" of dollars available to help individuals start/grow businesses.  The U.S. Government does not offer grant funds directly to small businesses, regardless of gender, race, or any other group.

What types of grants do exist?
The U.S. Small Business Administration does distribute federal grant money to non-profit organizations to assist small businesses achieve success.  It is possible that a federal grant will be available to a private company in order to develop a particular industry (such as environmental technology, for example) and it is possible for an individual or a non-profit organization to offer some type of grant funding.  However, such opportunities are not common.  Please research carefully before spending money to find grant opportunities.  Use resources such as the WBCC to assist you in determining if such an opportunity is legitimate. 

Can the WBCC help find grants, give grants, or lend money?
NO, the WBCC does not have a grant program and is not a lender.  We do not help find grants either because such opportunities are extremely rare if they exist at all.  What we can do is help prepare you to become a good candidate for a small business loan, and assist you with that process.  We also have a small cash award competition from time to time, usually as part of an annual end-of-year event. 

How to qualify to receive financing for a start-up business?
There are no rules set in stone when it comes to lending, however, there are some generalities to follow.  There are a variety of lending programs available, and it is not impossible to get loans for start-ups.  The best approach will vary by individual case.  The main thing to remember is that lenders are risking their funds on your business, so the best chance you have in terms of receiving funding is preparing in advance in order to demonstrate that you will be able to repay the loan. 

How to prepare for financing a start-up?
Entrepreneurs should not rely on a business loan until they have researched the likeliness that one will be received.  It is important to use community resources such as the WBCC, talk to lenders and research all of your options before the time comes.  It is generally the rule of thumb that before starting a business one should have the equivalent of 6 months current salary plus benefits of their own money on hand and available. 

When to start the loan process?
It is easier to get money when you don't need it rather than when you do need it!  Did you know that you could take out a loan or line of credit and NOT use it, and therefore NOT pay interest on it.  That way, you have it available should you need it.  When you hit a rough patch, when your cash flow is low, when your outstanding debt and revolving credit is high, it is extremely challenging to receive a loan.  Get it when you don't need it so you have it when you do need it! 

 

 

 

 

 

 

 

 

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