Grants to open a business

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grants

Posted by: ara Dec 15 2004, 02:52 PM
Hi , i'm here watching every day on tv. talking about goverment grants to help open a business, but they never give more info about how or where to get it from, me and my wife are very interested with the idea of owning our own business and keep our kids bussy in the business field, but kind like it's really hard to establish one from ground and to buy an established one is really kind of expensive, any idea about how to get more info about goverment grants.
Also we are looking into this 800 sq feet water store that has an income of $30,000 a year with an empty storage area in back store, which is selling for $ 50,000 , it has a potential business expansion future , very good location, can somebody give me any info about water store business if it really worth it for that much money , and if banks lends loans for that kind of business?
thank you.

Posted by: loanuniverse Dec 15 2004, 09:53 PM
Ara:

Regarding grants, I have been in finance for almost nine years and in all this time I have not heard of any business using grants to start operations. I am not saying that they do not exist, but they are so few and far that chasing them is not a viable financing alternative. As a matter of fact, I just found a great article that covers this matter at the SBA site. It goes something like this:

”… Individuals often call or visit the SBA asking for grants or "free money" to start their business. In many cases, they have read or heard about this free money and how easy it is to get through late night talk shows or in some obscure publication. In most cases, the information is incorrect and misleading. In other cases, it is close to a scam, at times asking for money for additional information……. You can read the whole article here: www.sba.gov

Regarding your “water store” opportunity knowing what exactly a “water store” does would be helpful so that I can give you some feedback.

Good luck

Posted by: Rick Dec 16 2004, 10:20 AM
Some agency have start up grant programs but they tend to be tailored as forgivable loans based on set criteria, i.e. reaching certain employment targets, etc. Others may have loan programs where they will forgive, say 25% of the loan, provided you have paid as agreed for the first 75%.

Most times when governments are providing 'grants' they are doing so to medium to large established companies who are expanding / relocating and adding incremental employment. You would find that most if not all of this grant money has some type of string attached, such as reaching agreed upon employment levels.
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