There are basically two types of business start up grant programs. They are:

Direct grant program: This program offers cash amount for meeting expenses involving activities like training, employment, and recruitment or capital investment projects. Most of these direct grant schemes generally require the company involved to put up around 50 per cent of the total cost.
Repayable grant program: Under this type of grant program the cash funding is offered for a business project with the intention that the sums will be paid out of future revenues. However, in case of the project fails, the grant is written off.
Though there are many programs offering grants for starting a business, there are not many who take benefit from these programs. This is because they feel that finding and obtaining the desired grants is really a tough job to do. But in reality this is not the case. There are many sources that help individuals find relevant info on different types of business grants.
The best source online for finding out available business start up grants is Grants.gov. At grants.gov, you can find information on hundreds of grants available for starting a business. The site provides valuable information on the specific requirements for relevant grants as well as instructions for applying.

Most grants for starting a business require the applicant to submit a letter of intent. This letter must contain contents that could demonstrate how the money will be used.
Also because there are innumerable grant programs, one must apply to the most relevant agency. Depending upon the type of business you are planning to start, your application must be directed to the source that is handling the related business grant programs.