Myths Surrounding Small Business Loans and Grants

Although the headlines in the newspapers declare with full confidence about the availability of small business loans and grants, the truth lies somewhere else. There maybe many websites promoting the fact that there are several government grants for budding entrepreneurs, the truth is that there are no such grants for for-profit businesses. There are many low-interest loans though which can finance the people waiting to launch their new businesses. There are only a limited number of grants which are restricted to the field of scientific research and development. People engaged in this business, which will promote the interests of the entire nation, are eligible for the federal and state government grants.

For getting small business loans and grants, you have to find out more about the US Small Business Administration (SBA) first. This body helps budding entrepreneurs to invest money by giving loans at very low interest rates. It helps these loans to be forwarded through banks and other financial institutions. It backs small businesses and holds an interesting portfolio of disaster loans, loan guarantees and business loans worth over $45 billion with a venture capital portfolio of $13 billion. SBA does not give loans directly though. However, it guarantees when you take a loan from a bank and is responsible for the repayment of the loan.

Among the available federal small business loans and grants, you can avail grants for scientific research and development. These businesses however should meet the Federal R&D objectives and can even commercialize after being successful. The process of applying for these grants is pretty simple. You just have to download an application form from the Internet for the relevant grant. Fill it up carefully and include a covering letter and a proposal for your business. The proposal should contain the details of your business and how you intend to utilize the funds. Once your application gets approved, you can set up the business and reap the benefits of your success.