Small Business Startup Grants

Small Business Startup Grants
Business grants for women owned businesses have helped out many women in a huge way to help run their businesses. It's a great opportunity for single women or mothers to gain financial independence.Registration can take between three-five business days or as long as two weeks if all steps are not completed in a timely manner. Register for grant opportunities now.
Grants or funds are money given to people who are in urgent need of it. Grants are given by government and private financial institutions to women who are planning to open a business venture. Women in general, are often sidelined and they face a tough time gathering finance for their venture and some support from people. If this is a case with you, then you can always expect a helping hand from small business grants designed especially for women. These business grants are provided by private, non-profit and some government backed financial institutions.

How to find a Business Grant for Women

The federal government does not provide any loans for starting a business. It helps some financial, non-profit and some private institutions to help women get loans for their business ventures. The good thing about business and government grants are that you don't have to pay them back. You can find such business grants for women on the Internet and your local Small Business Administration office (SBA). Some large financial institutions also market themselves through ads in papers.

Business Grants for Women Owned Businesses

The Small Business Administration (SBA) office is really working hard to ensure that women in the United States women gain financial independence and support the needs of their families. Since 1953 it has helped millions of American women to set up businesses which have now turned into successful corporations. Today, you can find a SBA office in every state ready to help you and hear your business proposal with open ears. The SBA has also joined hands with thousands of educational and finance lending institutions to make sure you get the appropriate help. Women owned businesses make billions of dollars every year.

Government backed financial agencies also provide small business grants for women owned businesses. To apply for any business grants for women owned businesses, you should have an impressive business plan. You should be excited and you should believe in your business idea. Fill the grant proposal very carefully, if you don't understand anything you can always call up the respective office and clarify your doubts. Make sure you submit your business proposal early, so that it arrives on time at the funding agency. Contact them after a few days to confirm that they have received your grant proposal.

According to market research, women own 35% of all independent businesses in the US. Research also claims that these small businesses have generated more than US $940 billion a year. Most of these successful business women have received their funds from financial institutions backed by the SBA or the government. Many large and private corporations also offer funds to women who have talent and faith in their business ideas. Such huge companies, select women on the basis of interviews. In these interviews they see your business plan and its future scope. Here the grant money is decided by the top directors of the company. Organizations such as the local chamber of commerce also help with grants for women to start their own businesses.

Read more on:Qualifying for business grants for women owned businesses is not that tough. You just have to believe in yourself and have an impressive business plan. I am sure that by reading this article all you women now have a better idea about how to apply for business grants for your commercial ventures. Best of luck!
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Thursday, 5 July 2012

Small Business Startup Loans

Small Business Startup Loans

Business firms avail loans for financing start-ups by approaching lenders like banks and credit unions who decide on the prudence of the investment based on the following factors. They evaluate the loan application and decide on conventional business financing, that does not require a Small Business Administration (SBA) guarantee, provided the borrower is deemed credit worthy. In case, the applicant's credit history is not up to the lender's credit standards, the financier would require an additional guarantee, the absence of which would disqualify the borrower from obtaining the loan. The American Recovery and Reinvestment Act of 2009, was instrumental in the US Small Business Administration (SBA) temporarily eliminating administrative fees and raising the level of guarantee on some of its loans. These steps have been taken to provide lenders with the security necessary to accelerate the process of disbursing loans to millions of business owners who are in desperate need of capital. 

The reason for the meltdown in lending, was on account of the lending institutions being unable to securitize their loans. Securitization is the process of pooling loans together and issuing securities with the underlying pool of loans acting as the collateral. These securities are purchased by investors who receive income from the interest and principal payments made by the borrowers. Securitization increases the lending power of the banks by freeing up funds. However, over time, the liquidity in the secondary markets declined since the securitizing institutions were unable to find buyers for investments backed by the pool of debts. Hence, banks who depended on the secondary markets for liquidity, became hesitant in extending credit to small businesses. The American Recovery and Reinvestment Act of 2009, tackled this problem by providing assurance, that the government would purchase 7(a) and 504 first-lien securities, which were backed by the popular SBA loans that promulgated small business startup loans.

Startup Loans for Small Business Entities

7(a) Loan: SBA guaranteed 7(a) small business startup loans are meant for borrowers who are interested in starting a business, expanding or acquiring small business entities. The typical applicant lacks the necessary collateral to clinch a loan and has insufficient equity to start the enterprise. The maximum amount of SBA guaranteed 7(a) loan, that can be availed by a borrower, is around $2 million and the SBA guarantees up to 75 percent of the amount of the loan. Administrative fee, on processing the loan, has been eliminated on loans originated on/after Feb. 17, 2009, with retrospective effect. Lenders, who have been approved to participate in SBA lending programs, are eligible to provide SBA guaranteed small business loans. People operating a home-based business can apply for this loan provided they meet the standard eligibility and credit criteria.

Micro-Loans: These loans are provided to startups, newly established, or growing small business concerns by nonprofit intermediaries who receive funds from the SBA. The amount of money, that can be provided as a micro-loan, cannot exceed $35,000. On an average, the money lent to a borrower is to the tune of $13,000. The borrower is expected to submit applications to the local intermediary who decides on the prudence of advancing money to the aspiring entrepreneur.

504 Certified Development Company Loans: These loans are meant for expanding small business enterprises by offering long-term, fixed-rate financing for the purchase of fixed assets, viz. land, building, machinery and equipment. The borrower brings with him/her a small amount of equity while the remaining portion is shared between the bank/primary lender and a certified development company(CDC). The portion of the loan from the CDC comes with a SBA guarantee for loans not exceeding $4 million.

SBA backed loans are generally provided to services, retail, accommodation, food, construction and manufacturing industries. These loans are geared towards helping minorities and women owned businesses become self sufficient and successful enterprises that benefit the society by generating employment.


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