This is one of the most commonly asked questions posted by entrepreneurs and owners of young businesses in the SBA Community. And, in most cases, the answer is “no.” However, some small businesses, particularly those engaged in “high-tech” innovation or scientific research and development, can benefit from government grants.
Here are some facts about government grants for small businesses, including who is eligible and how you can go about finding them:
Can I Get a Government Grant to Start a Business?
No doubt you’ve seen ads purporting to offer access to “free money” to start your business. While it’s not unreasonable to expect that the government may provide grants to small businesses, it’s wise to take most of these claims with a grain of salt. Why? The fact is, government grants are funded by tax dollars, and, as such, there are very stringent rules about how that money is spent.
In short, despite what you may have heard in obscure ads or late night TV infomercials, federal and state governments don’t provide grants for any of the following:
- Starting a business
- Paying off debt
- Covering operational expenses
Read entire column here