Federal Small Business Grants

Federal small business grants were initiated as part of a scheme to improve financial assistance to small business. They are available to prospective small business owners or those who would like to expand their businesses.

The Federal small business grants are managed by the Grants Policy Committee (GPC). The committee was created with the legal notice as provided by the Federal Financial Assistance Management Improvement Act of 1999. This Act is popularly known as the Public Law 106-107.

This is just one of the more than 1,000 Federal grants available to the American people. The grants are specific to certain sectors. The Federal small business grants are managed by the US government institution called Small Business Administration. More information on Federal small business grants can be found using the resources on this site.

Because there are several administrators of the Federal small business grants, finding the right administrator is important for successful use of the funds. There are several benefits that an applicant of the grant should expect from a good grant administrator, here are a few tips discussed:

·        Interest free capital - Federal small business grants are meant to provide a lease of life to a struggling business enterprise. It is therefore not reasonable to expect the business to pay for interest costs. Besides, the grants are tax payer’s money that is lent back and should therefore not attract any interests. Any administrator charging exorbitant interest rates is most likely a con.

·        Access to technical support: The Federal small business grants or loans are often accompanied with the technical support. This can include supporting the business owner to develop a business plan. Business plans will show the projected capital requirement, cash flow, profit margins, breakeven points, an income - expense report and balance sheet. These information would enable the business owner to access understand their business, know how much they can live on and access additional loans.

·        Access to Federal contracts: A beneficiary of Federal small business grants should be linked to Federal agencies that require the services of the business. Identifying and providing the linkage would be part of the responsibility of a grant administrator. Such initiatives would provide more business volume to the business entity thus increasing chances of grant or loan repayment.    

·        Educational tours: Learning from others is a powerful tool of building capacities of small businesses. Educational tours can be organized by the administrator in collaboration with the SBA.  These eventually contribute to better business practice and greater chances of loan repayment.

·        Loans guarantee program: Federal grants held by a small business owner would leverage the ability of the business to get additional loans. They could be used as loan guarantees. A good administrator should be able to make such arrangement.

You may gain direct access to many Federal small business grant programs by using the resources on this site.