Small Business Grants Vs ARC Loans

Small Business Grants Vs ARC Loans

Small businesses are an important part of the American economy. According to the National Federation of Independent Business (NFIB), they supply roughly 55 percent of all jobs in the private sector, and they generate about half of all privately generated Gross Domestic Products (GDP), according to some estimates. There are over 27 million small businesses in the United States. They can be self-employed, home-based, Internet-based, and owned by men, women, and minorities, producing a very broad range of innovative products and services. Yet they continue to struggle in securing financing to start or grow their businesses.

Small businesses have always relied on commercial banks for business loans. The increase in bank consolidations has resulted in larger banks, making it more difficult for the small business owner to secure funding for their business. Since more than 60% of small businesses rely on credit lines and loans, and the bulk of this financing comes from the banking sector, small businesses are increasingly looking for more sources to fund their businesses.

The good news is that there are many other sources available for small business owners, including government-backed loans, and grants. The major difference between the two is that loans need to be repaid; grants do not. However, the U.S. government, recognizing the important role that small businesses play in our national economy, recently announced the availability of interest-free ARC loans. Grants and ARC loans offer two additional sources for small business funding that are worth investigating.

Business Grants

Grants are not loans. Grants are free money that does not have to be repaid. Government grants are offered only to local and state, educational, and public housing organizations, and non-profits, and do not apply to start-ups. In addition, the government may offer some specialized grants to companies engaged in environmental efforts like energy efficiency and recycling, as well as businesses that train youth and senior citizens on the latest technology. That's why they are referred to as "special purpose grants." So, where do other small businesses go for grant money?

Grants are available from local government agencies and private corporations and organizations. Some of the private sources include trusts and foundations such as the Gates Foundation, the Lilly Endowment, Ford Foundation, Hasbro Industries Charitable Trust, W. K. Kellogg Foundation, the Kipling Foundation, Clorox Company, Allstate Foundation, and International Paper Company. Each source has their guidelines on what type of business will qualify for grant money, and the business owner must meet the criteria. Grant money can be as small as $500 or as large as $5 million. The application process is long and tedious, requiring the applicant to present a solid business plan. The competition for grants is keen with no guarantee that the applicant will receive the money. But for small businesses who qualify and are willing to tough it out in order to get free money, it is worth it.

ARC Loans

Business loans in general differ from grants in that they need to be repaid, with interest. In addition, grants are based on the presentation of a well-written business plan, while loans are based on credit scores and often require collateral.

Recently, however, the U.S. government announced a new program of interest-free loans called ARC (America's Recovery Capital) loans, an extension of the 2009 Recovery Act, offered through the U.S. Small Business Administration (SBA). ARC loans provide up to $35,000 (one time only) of interest-free money specifically to small business owners to help them pay down debt on other loans. In essence, it buys them time to get back on their feet. The loans are available until September 30, 2010, or until the funds are depleted (only 10,000 loans are available), and are offered through SBA lenders only. SBA pays the fee to the lenders; the borrower pays back only the principal. Other specifics on ARC loans include:

* Only private, for-profit enterprises up to 500 employees are eligible; non-profits are not eligible 

* Business must be at least two years old 

* Business must demonstrate an immediate financial hardship 

* Loan money can only be used to pay off existing outstanding small business debt 

* Loan money is paid out to the borrower over a six month period 

* Repayment of the principal begins after the last loan disbursement is received 

* Borrower has up to five years to repay the loan principal

BusinessGrants.org (http://www.BusinessGrants.org) is a free online resource for details and FAQs about small business grants and other financing options.

Visit to - http://businessgrant-money.blogspot.com/

Article Source: http://EzineArticles.com/2517019

The new ARC loans offer both advantages and disadvantages. The advantages include instant cash flow improvement, more money to re-invest in the business, and more time to restructure the business and position it for future success. For some small businesses, it is just what they need to survive. For others, the disadvantages include the strict criteria for qualification and use of ARC loan money. In addition, unlike grant money that does not have to be repaid, ARC loans need to be repaid. So, a small business owner who meets the qualifications must present a solid business plan that convinces the SBA lender they will be in a position to repay the loan within the time period allotted. That is the risk for the borrower, the lender, and the SBA who is guaranteeing the new ARC loans.

ARC loans are not for everyone. However, they may be just the solution needed to save some small business owners.

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How to Get Free Government Money Fast

How to Get Free Government Money Fast

We have heard about all the seemingly elusive free government money programs that re available to American taxpaying citizens each year, yet thousands of qualified individuals continue to neglect to apply year after year. There is an enormous amount of free unclaimed government money attainable by most American citizens over the age of eighteen, just waiting to be awarded.

It is probably a good assumption that as a generalization, people just don't believe they can get "free money". This is understandable considering that most things that appear too good to be true are indeed that. However, it is believed by many that it the particular terminology of the phrase that is detouring American taxpayers from pursuing these generous monetary opportunities. Perhaps if this "free money" was spoken of in it's more specific terms people would be more likely to take the theory seriously and actually obtain their share of the funds.

To be more specific, the free government money that is available is provided through government grant programs. State, federal, and government grants are cash awards distributed to American citizens for a vast array of reasonable purposes. This money if non repayable, non-taxable, and in many cases easily acquired. Free government money is not myth. It does exist. You just must be more specific in detail when looking to locate it.

Rather than searching for "free money to buy a home", try typing "government home grants". There is no doubt you will soon be filtering through a wide variety of real estate or first time homebuyer grants that, you guessed it, provide free government money to buy homes. Or if you are interested in paying off exorbitant credit card debts you may enter "federal debt relief grants" rather than "free money for credit cards".

You can find free unclaimed government money if you look hard enough, but searching for free government grants will get you where you are going a whole lot quicker. It is quite easy to doubt anything that is preceded by the word "free", but when it comes to government grants, there is no doubt about it. Free money does exist, and you're only a few clicks away from finding the right type for you.

See Available Government Grants and find out how much money you qualify to receive today. Never pay it back.

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Article Source: http://EzineArticles.com/2275483

Grants for Small Business Startups

Grants for Small Business Startups

Website hosting provider explains 
As it the case with any new business, capital is a necessity in order to not only launch a new business, but grow it. And many entrepreneurs are tethered to a job they dislike because they can not find the capital needed to start their new enterprise. The solution to this quandary is grants for small businesses. The advantage of a grant for a small business is that they are exempt from taxes and are interest-free. Believe it or not-there are sources of money available to business owners that equate to a free lump sum of money that you can use for start up costs as you open your own business.

Sources of grants for business owners 
There are two main sources of grants for small business owners. The main source is from the government. But there are also private grants that are available. Yes, the government and private equity firms are interested in growing your business. They want you to succeed!

Government Grants 
Extensive information about government grants are available online at grants.gov, which is the Federal government's web site maintained in order to provide information pertinent to individuals who are looking to find and apply for federal grants

Once you choose a grant to apply for, make sure you follow the instructions for the grant proposal to the letter, and respect all guidelines and deadlines. Go to your state's Web site to discover what state government grants may also be available.

Private Foundation Grants 
Private foundation grants are an excellent source of funding for small businesses. You might ask yourself.... why would a company offer to "give" away money? The truth is that many foundations NEED to donate money to charity for tax reasons, and these foundations set up trusts or endowments for specific charities or new businesses through grants.

Finding a private foundation grant is not as easy as finding a government grant. To find a private foundation grant, you might consider hiring someone that is experienced and familiar with the grant process. And more importantly, you need to find someone that is familiar with the grant process in YOUR industry. This can be a significant obstacle for some companies. If your company is not prepared to hire someone to research and write a grant proposal, do some research at Google and possibly take a class on writing a grant proposal yourself. It can be done and grants have been obtained by business owners who have no previous experience in obtaining grants.

Writing a Grant Application 
The grant application process is extensive and the competition fierce. You'll want to make sure your application stands out. So, when writing or preparing to write your proposal, you will need to keep in mind that the goals for grants are to not only help business owners, but also help society. So, keep this in mind when writing your application. How will your business help society? Is there any way your business is tied into the interests of the organization sponsoring the grant? How can you show the sponsor of the grant that your business will be a good investment for the country? Most business grants are given to research and development or nonprofit businesses, because these kinds of businesses benefit all of society.

Website Hosting a Must 
Start with a website hosting account. Don't rush into the grant application process before you have a website established.

And keep in mind, that just because you THINK you have a good idea, that it is. Bounce your choice off of friends and family. Do they "get it?" Do they understand why you chose it? If so, it's probably a good choice for a company. If they don't, keep working on it. If they do, then start by setting up a professional website. Your application process will require a URL and a professional web presence.

Before you do anything - before you develop a business model, a revenue model, a purpose of the company, before you establish your brand's core values and develop a tag line for the company, think long and hard about the best website for your new business enterprise.

Ms. Rosendahl has over 20 years experience in systems analysis, hosted applications, and management as well as 15 years experience in web hosting and Internet marketing. Ms. Rosendahl has a Bachelors from Houston Baptist University with a double major in Computer Information Systems and Business Management. Stephanie is the founder and CEO ofwebsite hosting firm - GreenHostIt.com green hosting proudly offering dallas web hosting.

Visit to - http://businessgrant-money.blogspot.com/

Article Source: http://EzineArticles.com/7088990

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Apply For State Business Grants Online

Apply For State Business Grants Online

How to apply for a government grant

Before you apply for a grant you should make sure that you meet the conditions of the scheme. Additionally, you should ensure that you:

• are ready to put up some of your own money
• need the money for a specific purpose
• don't start the project before you get an agreement in principle of funding

Before applying for a grant, you can contact the Business Link helpline to make sure the scheme is appropriate for your circumstances and location. You could also consider contacting a private business adviser for help and advice.

Making your proposal

When you have identified the right grant scheme for your needs, you will have to provide:

• a detailed project description
• an explanation of the potential benefits of the project
• a detailed work plan with full costings
• details of your own relevant experience and that of other key managers
• completed application forms where stipulated
• possibly a business plan

Some businesses get advice from their accountant, who can also help in drawing up an effective business plan. Remember to submit your application before the deadline where relevant - late applications are rarely considered.

Most reviewers will assess your proposal by using the following criteria:

• significance
• approach
• innovation
• their assessment of your expertise
• need for the grant

Be prepared to wait for anything from a few weeks to a year for a decision. Local applications are typically processed much more quickly than others.

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Subjects covered in this guide

• Introduction
• Government grants and support
• What kind of grants are available?
• Grant eligibility
• How to apply for a government grant
• Why a grant application might be turned down
• Identify finance options for your business (Flash video)
• Preparing to attract investment (Flash video)
• Pitching to potential investors (Flash video)

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• Print guide now- Opens in a new window
• Add guide to my print portfolio (print later as PDF)

Visit to - http://businessgrant-money.blogspot.com

Source - http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1073791556&type=RESOURCES

Tags - small business grants
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Grants For Single Mothers or Christian Mommies

Grants For Single Mothers or Christian Mommies

Please note: Christian Mommies.com does not offer grants, nor does our Admin have any knowledge on this topic. Sadly, our contact form and even our forum application form have been flooded with requests for loans, ever since the recession began. Also, please see Government Grant Scams Are Everywhere - Here's How to Avoid Them!

By Kelly Kennedy

If you are a single mom and struggling to get by, you are not alone. Whether you are going through a divorce or the father is absent most single mother face the burden of supporting themselves and their children all on one income.

* Only fifteen percent of women going through a divorce are awarded any form of court-ordered spousal support.

* Thirty-four percent of those women never receive what is due to them.

* Less than half of the women who claim child support ever receive the full amount.

* Within the first year of divorce a women's average standard of living falls forty-five percent while a man's will grow fifteen percent.

What are grants?

A grant is an award of financial assistance. The primary purpose of a grant is to transport a thing of value from a Federal agency to a recipient to carry out a public purpose of support or incentive authorized by a law of the United States. A grant is distinguished for a contact, which is then used to acquire property or services for the Federal government's direct use or benefit.

Grants are associated by company, state, local or tribal government, research institution or academia, not-for-profit, or any other kind of institution.

Grants for single mother can be found on one of the 900 grant programs offered by the 26 Federal grant-making agencies. These programs fall into 21 broad categories defined by the Catalog of Federal Domestic Assistance. Agencies may fall under multiple grant categories.

Below is a list of categories where grantsfor single mother may be found:

• Agriculture
• Arts
• Business and Commerce
• Community Development
• Consumer Protection
• Disaster Prevention and Relief
• Education
• Employment, Labor, and Training
• Energy
• Environmental Quality
• Food and Nutrition
• Health
• Housing
• Humanities
• Information and Statistics
• Law, Justice, and Legal Services
• Natural Resources
• Regional Development
• Science and Technology
• Social Services and Income Security
• Transportation

If you are a single mother seeking help with funding for your higher education you should consider exploring financial aid options such as contacting your financial aid office where you attend school. Ask about:

• Direct financial assistance from your college
• Federal and state subsidized grants
• Work-study programs
• Support from alumni, local clubs, or religious groups,
• Corporate-sponsored scholarships or tuition-aid programs for employees or for children of employees

Who can apply for grants?

If you are a citizen of the United States or a U.S. territory, or are a foreign national who has lived in the United States or a U.S. territory for at least three years immediately preceding an application, you are eligible to apply for a grant.

How do I prepare an application?

Each grant program has special instructions and program guidelines on how to properly prepare an application. Make sure to review these carefully before beginning your application for any important information about the focus of the program, eligibility requirements, and the types of funding available.

Applying for a grant is a great way for single mother in debt to get out of debt and stay out.

Helpful sites
- http://www.grants.gov lists over 900 grant programs.
- http://www.neh.gov answers common questions about grants.

Visit to - http://businessgrant-money.blogspot.com

Source - http://www.christian-mommies.com/special-features/just-for-moms/grants-for-single-mothers/

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Government Grants to Start a Small Business

Government Grants to Start a Small Business

The federal government as well as the state and local governments extend a lot of help through special financing programs to start or expand small businesses. These programs offer capitals at low interest rates. To acquire the best small business grants you need to consider the following factors.

Objective of Your Business
The first step is to decide whether you intend to start a non-profit venture for a community service or a technology-related business. This will help you to apply for the type of grant you require for the business startup. Read through various websites that provide an information on innumerable government grants or loans available to start small businesses. Ensure that you have gathered an information about the sites that provide updated data on grants available from the government on an everyday basis or a weekly basis.

Kind of Grants Released
Initially, one has to gather an information on the kind of grants available pertaining to a business. You may not be able to procure the grant or loan provided by the government, if you are not well-informed about it. You can also approach the special programs directly that provide financial assistance, specific to a particular venture. Some of the grants that are offered by the government are rural economic development loans and grants. The intended goal for such a program is the creation of employment and business opportunity. Other grants include loans for women business entrepreneurs. For instance, if a woman plans to start a day care center or a home-based business, the chances of getting a grant or a loan to start such small businesses, are the highest. You should not write a grant proposal for a non-profit venture to the government agency which aims at technology-related business. If you do so, your proposal will be rejected. This draws the importance of being well-informed about the kind of grants released by different government agencies.

A Course on Grant Writing
A course on grant writing will help you to write a very noticeable proposal. You would want a response on every proposal that you write. To ensure that your proposal is accepted, it has to be effective and stand out from other proposals. Your writing has to be personalized, since different government agencies have different criteria for acceptance of a grant proposal. For instance, if a government agency offers grants for technology-related business, you will have to write your proposal with facts and demographics to establish the need of such a business in the economy. This can be aided by a course on grant writing. The grant proposal is the first impression of the individual applying for the grant. As it is rightly said, "First impression is the last impression". Hence a course on grant writing will help you cater to this need.

Continue to Apply for New Grants
You can apply for new grants on a weekly basis. Make sure that you apply as soon as the new grants become available. You can choose the grants that would best suit the business you plan to start. If your grant is being rejected very often, you will have to work on framing your proposal.

Flexibility Should be Your Key to Success
One of the major keys to the success of achieving a grant is to be flexible. If you find out that achieving a grant from the government is not working well, you could try other primary options available to apply for the grant from the government. Loans are also available with a fewer restrictions on how to use the money.

Availing small business grants can be difficult, as these funds may be released only during a certain time period in a year. The government aims at fulfilling certain objectives, which keep changing over time depending upon the type of business grant. For example, let us consider a situation when the government aims at offering grants and loans for the rural development. Later, the government may aim at offering grants or loans to small businesses for the scientific development. In these cases, it becomes difficult to keep oneself updated, due to the ever-changing nature of the grants offered by the government. The funds can also be used for the creation of jobs or for agriculture, farming or fisheries assistance, etc. Moreover, you will not be allowed to use the grants for just any purpose that you wish.

The government aims at increasing the overseas exports and offers grants or loans for research and development. Hence, you will have to be well-informed about the government's objective in providing a grant or loan to start a small business.

By Mayuri Baruah

Visit to - http://businessgrant-money.blogspot.com/

Source - buzzle.com/articles/government-grants-to-start-a-small-business.html

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