You are starting your for-profit business, entering college, set up non-profit organization – you need money for these purposes. And not of small amounts.
If you take enough efforts and are not afraid of wasting time in case of failure, then you should firstly try to get government loans or grants.
Government grants are generally (though not always) given to non-commercial organizations for programs and services that benefit the community or the public at large.
Probably, the first place where you should search for government grants is U.S. Government’s Grants.gov web resource, where you can find and apply for competitive grant opportunities from all Federal grant-making agencies.
Bear in mind that not all government grants are not all the year round.
Individual loans are most often given for educational support (financial aid), the arts, and various types of scientific or other research, although some agencies award grants to individuals for other purposes.
Government Loans from the SBA (Small Business Administration) can be used for most business purposes:
- The purchase of real estate to house the business
- Construction, renovation or leasehold improvements
- To purchase furniture, fixtures, machinery, or equipment
- For the flooring of inventory and for working capital.
Though the government has been able to step in and guarantee loans to people who otherwise would not be able to borrow. In most cases, it is still private banks and other financial institutions that are doing the lending. But the government is taking the risk, by offering to cover the loans in case the borrowers cannot repay them. The end result is that the economy runs smoothly, and all people benefit.
There are three main areas in which the government guarantees loans. It offers loans to small businesses, to potential home buyers, and to those pursuing higher education.
