Grants For Women Starting Small Business
1st time small business loans (gov't) for women....?
Does anyone know the gov't grant name, or specificially where to find out how to qualify for a gov't grant for a woman to start a small buisness?
You can get government LOANS for women, but not grants. SBA has a Minority and Women's Prequalification Pilot Loan Program http://www.sba.gov/business_finances/prequal/ that provides qualified beneficiaries with loan amounts up to $250,000
The eligibility requirements for this loan program are as follows:
- Businesses at least 51 percent owned, operated and managed by people of ethnic or racial minorities or by women;
- businesses with average annual sales for the preceding three years that do not exceed $5 million;
- businesses that employ fewer than 100, including affiliates.
Pilot sites for the Women's Prequalification Pilot Loan Program are: Buffalo, NY; Cedar Rapids, IA; Charlotte, NC; Chicago, IL; Columbus, OH; Louisville, KY; New Orleans, LA; Philadelphia, PA; Portland, OR; St. Louis, MO; and San Francisco, CA. The program is offered statewide in the following states: Colorado, Maine, Massachusetts, Montana, New Mexico, and Utah.
Other loan programs of SBA can be found at http://www.sba.gov/financing/sbaloan/snapshot.html
It is hard to find grants to start a business -- even for women and minorities. Unlike the myths that some perpetuate, federal government and even private foundations hardly give grant money for a for-profit business. And yes, grants mean PAPERWORK - lots and lots of it, that is why a cottage industry of grant writers was born.
Nonetheless, you can go to the Catalog of Federal Domestic Assistance (CFDA) http://www.cfda.gov and Grants.gov http://www.grants.gov - these are two sites created by the federal government to provide transparency and information on grants. Browse through the listings and see if you can find any grant that would support a for-profit venture.
Even if you buy books on "how to get grants" or list that supposedly has information on grants -- all of them are mere rehash of what CFDA has, albeit packaged differently. But still the info is the same - hardly any grants for starting a for profit business.
Even SBA does NOT give out grants. From the SBA website http://www.sba.gov/expanding/grants.html...
"The U.S. Small Business Administration does not offer grants to start or expand small businesses, although it does offer a wide variety of loan programs. (See http://www.sba.gov/financing for more information) While SBA does offer some grant programs, these are generally designed to expand and enhance organizations that provide small business management, technical, or financial assistance. These grants generally support non-profit organizations, intermediary lending institutions, and state and local governments."
Here is a listing of federal grants for small businesses. See if there is any available for individuals for starting a business -- THERE'S NONE.
http://12.46.245.173/pls/portal30/CATALOG.BROWSE_BENEF_RPT.show
Most of the federal grants are given to specific target groups with specific requirements (e.g. minority business owners involved in transportation related contracts emanating from DOT - Grant#20.905 Disadvantaged Business Enterprises Short Term Lending Program
Grants are also often given to non profit groups or organizations involved in training or other similar activities (grant 59.043 Women's Business Ownership Assistance that are given to those who will create women's business center that will train women entrepreneurs
For private grants, you may want to check the Foundation Center's Foundation Grants for Individuals Online. It's a subscription based website ($9.95 per month) but their opening blurb only says that the database is ideal for "students, artists, academic researchers, libraries and financial aid offices." Entrepreneurs are apparently not one of them, so I take it they also don't have listings of private foundations who give grants to would-be entrepreneurs.
http://www.cfda.gov
http://www.grants.gov
http://gtionline.fdncenter.org
http://www.powerhomebiz.com/vol66/grants.htm
http://www.sba.gov/expanding/grants.html
Now is a Great Time to be a Woman Small Business Owner
In the last 20 years, where women work, how women work, and what kinds of jobs women are seeking have changed. As more and more corporations have re-organized and downsized, as more children of Baby Boomer mothers are leaving home, and as more traditionally employed women are waking up to the fact that they want more out of life than just simply getting a paycheck, the world of small business ownership is exploding.
As a whole, the United States is becoming more entrepreneurial. More than 1/3 of all people involved in entrepreneurial activity are women. According to an April 2005 report by the U. S. Small Business Administration, Office of Advocacy and Business Times, there are an estimated 10 million privately held businesses in the United States that are owned by women.
More people own small businesses in the United States than ever before. According to the U. S. Small Business Administration’s report dated June, 2006, it is estimated that there are 25.8 million small businesses (including self-employed and sole proprietors) in the United States.
According to the same report, over the last decade small businesses have generated 60 to 80 percent of new jobs, and they employ 50.6 percent of the country’s private sector workforce.
In addition to starting new businesses, there are also an increasing number of entrepreneurial Americans who are buying existing small businesses, instead of starting their own. According to a report by Wachovia, small business acquisitions are growing in popularity. On any given day in the United States, 1.7 million businesses are for sale.
Why Women are Starting Businesses
Women are starting businesses for two main reasons: lifestyle and money. Many run their businesses from home so they can be there for their children, instead of being dependent on daycare and other non-family support care.
Other mid-Baby Boomer women (those in their 40s) have achieved a level of success in the traditional workplace and are striking out on their own, eager to call their own shots and take charge of their financial futures.
Older Baby Boomer women are retiring early to start new businesses. According to AARP, entrepreneurship is growing in those 50 years and older. In addition, they predict that people who take early retirement or whose jobs just disappear will drive solo business formation in the future.
Two Greatest Challenges to Women
The greatest challenges for women starting up businesses are access to capital and general lack of know-how. However, these challenges are not stopping women from starting up. Today, women have the same access to money as men do. In fact, many start-up fund sources are specifically targeting women through grants and new venture capital. Women can be as creative in their approach to money as they want to be, making use of incubators, partnerships, or more traditional methods of funding such as home equity lines of credit, angel funding, or commercial loans.
Women are also realizing that, just because they don’t have a business degree, it doesn’t mean they won’t be successful at running a business. Accounting needs can be outsourced. Teleseminars can be taken. Books can be read. Questions can be asked. Experience can be gained. Women know that they don’t have to do it all by themselves!
In addition, women are finding that their life and work experiences count for something when starting up a business. They recognize the treasure-trove of applicable, relevant experience that they have amassed over the years and are tapping into these storehouses for their start-ups. Moreover, they know that whatever they don’t have right now, they can learn as they go.
If you are a woman considering small business ownership, this is a perfect time for you. Don’t let lack of money or expertise stand in your way. Have confidence in your valuable life experience, and draw from it when starting your business. Then get creative about funding. Never before have banks and other creative lending sources been more supportive of women-owned small business start-ups.
About the Author
Susan L Reid, DMA, Small Business Start Up Coach & Consultant has her first book coming out in October: Discovering Your Inner Samurai: The Entrepreneurial Woman’s Journey to Business Success. She provides value, inspiration and direction for entrepreneurial women starting up and launching small businesses. For your free e-Zine full of ideas and start up tips, visit http://SuccessfulSmallBizOwners.com.
