How Small Entrepreneurs Can Start His Small Business With The Help Of Grants?
How Small Entrepreneurs Can Start His Small Business With The Help Of Grants?
Article by John Goldman
The U.S. Small Business Administration (SBA) was founded in 1953 and since its inception; small businesses interest has been aided, counseled, assisted and protected by it.
No doubt SBA provides considerable financial support to small businessmen but it’s role in providing assistance to those affected by natural as well as man made or other disasters declared by the government is notwithstanding very important.
The largest grant-funded service delivery network of SBA is The Small Business Development Center Program, creating opportunity for small businessmen to avail various provisions and schemes being launched by it from time to time.
It operates with the mission to provide as much assistance possible for the business and economic development to bolster growth, expansion and modernization, increase production and improve management. SBDC provides assistance by linking Federal, state, and local government resources with private sector and educational community.
This year Small Business Administration (SBA) planned to issue Program Announcement No.OSBDC-2009-04 for the invitation of applications from Lead Small Business Development Centers to receive funds for providing training, counseling and educational activities to those small businesses, who had been either affected by the natural disasters such as hurricanes, flooding, or any disaster of serious nature during the year 2008.
These business development centers are serving at least 100-affected small businesses as a declared subject of a Presidential Major Disaster Declaration.
This announcement has been made under Public Law 110-329 proclaimed on September 30, 2008. Under this announcement, SBA is expected to issue awards to the amount of $ 10,000,000.
There are around 63 Lead Centers under SBDC program and minimum fixed amount of award has been fixed $ 10000 for one Lead Center whereas maximum has been fixed according to its eligibility.
SBDC has communicated to SBA that this amount of current funding is enough to provide benefits to 100 small businesses affected by natural hazards. For full details on description of the grant, eligibility of the applicants and the applying procedures.
There are many programs available to assist affected small businessman in rural areas too. Though rural development business programs do not have any authoritative body for providing assistance in case of disaster yet there are many programs available that are adequate enough to give financial relief to small businesses.
Among many are Business and Guaranteed Loan Program, Rural Business Enterprise Grant Program, Rural Business Opportunity Grant Program, Rural Economic Development and Loan and Grant Program.
Government has made clear that for small businessmen, there is no need of any fear of losses on account of the disasters as they can always apply to SBA for assistance only with the condition that they have to keep themselves updated about recent announcements.
John Goldman is one of the foremost advisor in matters relating to Government Grants and Financial Aid. To learn more about government grants and how to apply for them visit the Government Grant USA website
Question by hmm: Tips for Small business loan to a start Child Development Center?
It will be an in-home childcare. I am partnering with someone. We will also live in the house. Is 7% considered a low rate? We haven’t even gone to the banks yet but we are looking for something not above $ 5,000 AFTER interest. Im 21 and my partner is 23. TIPS PLEASE =D!
Best answer:
Answer by Robert E. Lee
Go to www.score.org and in the upper left hand corner, enter your zip code. On the next screen, you will find the SCORE chapter nearest you. Call them and arrange for a free meeting with a SCORE counselor.
SCORE “Counselors to America’s Small Business” is a nonprofit association dedicated to educating entrepreneurs and the formation, growth and success of small business nationwide. SCORE is a resource partner with the U.S. Small Business Administration (SBA).
SCORE was founded in 1964 and is headquartered in Herndon, VA and Washington, DC and has 389 chapters throughout the United States and its territories, with 11,500 volunteers nationwide. Both working and retired executives and business owners donate time and expertise as business counselors. SCORE is America’s premier source of free and confidential small business advice for entrepreneurs.
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Categories: Small Business Development Center Tags: Business, Entrepreneurs, Grants, Help, Small, Start
Business Loans ? for Most Businesses and Most Entrepreneurs
Business Loans ? for Most Businesses and Most Entrepreneurs
Presently, the market of business loans is so extensive that it can take care of the needs of virtually every business (big and small) and every entrepreneur (established and aspiring). Every business needs funds… In an age, when people have to take loans even for regular personal needs, self-financing a business is neither possible nor a viable move. Based on requirement, businesspersons can choose from secured and unsecured business loans.
Secured business loans: These loans can be availed by pledging collateral (like home) to protect the lenders investment. In return, loan seekers can negotiate for low APR and suitable repayment terms and conditions. This bargaining possibility makes them suitable for large monetary requirements (£50000 to £1000000 approx). Please note that repeated defaults and non-repayment can lead to security seizure. Hence, borrowers should avoid over borrowing and keep track of their repayment schedules.
Unsecured business loans: These loans can be availed without pledging collateral for the loan amount. In the absence of collateral security, these loans come with high APR and virtually fixed repayment terms and conditions. Absence of collateral makes them comparatively safe and poses no immediate risks to the borrower’s valuables. But, non-repayment or repayment slackness can force the lender to take a legal action.
The overall loan approval time of secured business loans is more as compared to unsecured business loans because secured deals have an additional thing – property evaluation procedure, which requires a lot of time. Hence, secured loans are mainly availed for new set-ups and major expansions, whereas unsecured loans are procured for short-term or urgent business requirements.
Assume that a businessperson is neither in a position to offer collateral nor in position to show a positive credit record… With bad credit record and no collateral, can he get a business loan? Yes, he may, as many lenders have opened arms for bad credit holders too and are offering them a second chance under the ‘bad credit business loans’ banner.
The above-mentioned broad categories of business loans are further segregated on need basis like small business loans or micro business loans, commercial real estate loans, franchise start-up loan, business acquisitions loans, equipment financing loans, construction financing loans, equipment leasing loans, etc. So, choose wisely and shop around.
The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration as a finance specialist. For more information on unsecured business loans please visit:- Apply for loans
Webinar on SBA Disaster Recovery Assistance For Business Owners
WASHINGTON–(BUSINESS WIRE)–How do you apply for a U.S. Small Business Administration disaster loan? What are the loan limits? Can the SBA disaster loan help with those losses not covered by your insurance? Get answers to those and other questions during a webinar on Understanding Disaster Assistance Funding with the SBA hosted by Agility Recovery Solutions on Tuesday, August 24 at 2 p.m., EDT …
Read more on Business Wire
Grants for starting a small business are more likely to come from the city as opposed to the state, as the city is always trying to redevelop and re-energize the inner areas of the city. Find a grant from the local government to start up a small business withinformation from a portfolio manager in this free video on business strategies. Expert: Roger Groh Contact: www.grohasset.com Bio: Roger Groh is a personal asset manager, and the head of Groh Asset LLC. Filmmaker: Bing Hu
Video Rating: 5 / 5
Categories: Business Loans For Small Business Tags: Business, Businesses, Entrepreneurs, loan seekers, Loans, Most, web
Entrepreneurs Find New Way To Finance Dream
Statistics show that more than one million people in the United States start a new business each year. That number would be much higher if all the would-be entrepreneurs had the financing required to get a business up and running. In order to accomplish their dream of business ownership, entrepreneurs are finding new and innovative ways to finance their new ventures.
According to Leonard Fischer, President/CEO of BeneTrends, one of these new financing options is the use of a person’s existing retirement funds-a pension, profit sharing, 401(k), IRA-which allows that person to start the business he or she has always dreamed of without tax penalties, consequences or mountains of debt.
Under the Employment Retirement Income Security Act (ERISA), retirement funds can be transferred into usable capital for business investments or operations. If a person has more than $40,000 in a retirement account and is not currently employed by the company that holds those funds, he or she qualifies for this Small Business Administration (SBA)-recognized financing approach to start a business.
Retirement funds can be used for any business purpose, including:
• Purchasing a franchise or existing business
• Start-up expenses, such as purchasing property, equipment, etc.
• Working capital, including paying salaries, franchise fees, etc.
• Business expansion, such as funding additional franchises, locations, etc.
• Equity toward SBA or other loans.
The thought of dipping into one’s retirement can cause some apprehension. Through this investment strategy an individual actually has more control over his/her retirement-instead of gaining minimal growth dependent on the stock market, those savings are actually being invested in one’s own business. This approach often allows an individual to set aside more money for retirement than ever before.
“Today’s entrepreneur faces an environment of tremendous competition, complexity and opportunity, so starting a business the right way is more important than ever,” says Dr. Germain Boer, Director of Vanderbilt University’s Center for Entrepreneurship. “This financing method is a good option for an individual who has accumulated funds in his/her retirement accounts.”
The entire process generally takes two to four weeks to be completed, and can be done by phone, email, fax, FedEx and regular mail.
Working with an experienced employee benefits plan expert, starting a business is as simple as these four steps:
Step 1: Establish a C-corporation.
Step 2: The new corporation creates a retirement plan.
Step 3: Funds are rolled over into the corporation’s new retirement plan.
Step 4: The new retirement plan purchases the stock of the corporation.
“So many people have watched their dream of owning their own business go out the window due to lack of funding options. We help people achieve that dream every day using money they already have,” says Fischer.
If you’re ready to explore this innovative financing option, be sure to consult an expert to guide you through the specialized process.
Categories: Business, Finances Tags: Entrepreneurs, Entrepreneurs Find New Way To Finance Dream, Entrepreneurship, finance
