New Business Grant Money

Would like to start a new business but you have no startup capital? Consider applying for grant money in order to get it off the ground.

The great thing about grant money is that it is not a loan and does not have to be repaid. There are always restrictions and regulations attached to grants but, if used as they are intended to be, grant money is free!

You will have to research sources because new business grant money is scarce but it is there. There is one reliable resource when looking for federal grants and it is the Catalog of Federal Domestic Assistance (CFCA). The CFDA website lists all new business grant programs funded by the federal government. There are two categories of new business grant money. One is for grants for minority businesses and one is for rural businesses. For each category, there are specific requirements and criteria that are mandatory.

Rural Business Opportunity Grants

The Department of Agriculture’s program “Rural Business-Cooperative Service” offers new business grant money for rural business projects. In order to qualify, the project must be tied to: sustainability, economic development, and must address the exceptional needs of a rural community. This program has is focused on assisting existing businesses and the applicants can be a nonprofit or public organization. The applicants can then grant the funds to residents.

In addition, new business grant money applicants include Indian tribes (provided that they fall into the defined perimeters of the project) and cooperatives with primarily rural members that are primarily rural residents and that mutually benefit the members.

There are stringent restrictions on the grant money, which are imposed by the Department of Agriculture. The grant money must be used for in rural areas. This can be achieved by through the provision of training, technical help, or the planning of economic development and the opportunities that entails.

To apply, you must have:

* Documentation of the legal capacity of the business
* Documentation supporting the finances and expertise involved in the project. You must also be able to clearly show that the objectives and benchmarks set out in the proposal are achievable.

Minority Business Opportunity Committee (MBOC)

The other category of new business grant money available at CFDA is the MBOC. This grant money is to allow new and existing businesses owned by minorities to enjoy the benefits of the economic system.

Any level of government or quasi governmental entities; accredited post secondary institutions; American Indian Tribes; as well as both nonprofit and for profit organizations can apply for this grant money.

A panel assesses the applications and the results of the assessments determine what projects will be the recipients of the grant money. The evaluation includes, but is not limited to, such aspects such as the experience and capability of the staff members, techniques and methodologies applied to various parts of the project, innovation, creativity, resources and total costs.