There are few business grants for women and minorities for starting a business. But the government offers numerous advisory and consulting services for women and minorities to hone there business and financing plans.
There are certain government agencies and private institutions that offer grants to minority and women-owned businesses in order to help them sail through the difficult initial period of entrepreneurship. Grant-writing refers to the process of applying for a grant. Needless to mention, these grants can turn out to be of immense help for the first-time entrepreneurs, as it has been seen that some of the brightest aspiring minds are unable to initiate their commercial ventures owing to lack of capital. These business grants, however, act as wonderful financial options for first-time entrepreneurs. But grant-writing is a lengthy process and a difficult one, as well. So those of you all who are interested in availing this financial option, please make sure that you are learning the art of “grant-writing” thoroughly. It might seem a bit difficult initially, but with the right kind of practice, you can expect to reap the benefits.
Tips to Apply for Minority or Women Owned Business Grants
It is very important to study the nature of grants made available by private institutions or government agencies and determine whether the specific program complies with your business needs or not. Make sure that you’re listing the contact details of all the institutions providing the grants for which you’re eligible. Please be informed that if you’re both a woman and a member of the minority group, then you can avail a wider array of schemes.
Now determining your eligibility for the grant is a lengthy process as well. There are some grants that are specifically focused on start-ups while others are meant for established commercial ventures. There are certain grants that are offered only to specific types of businesses or else only to residents of a particular area. There is simply no point in browsing through websites of each and every organization, which offers grants – because you will not be able to qualify for all of them.
Once you have the contact details of all the agencies that you qualify for, start researching on the background of each of these organizations. Comb through the websites thoroughly and note down details like the types of projects that these institutions back financially, their purpose behind each of the grant awards, the names of grant winners etc. Sometimes the grants are awarded solely in order to bolster minority or female entrepreneurship.
Start working on the applications now. Firstly, note down the deadlines for submission of each of the applications. Make sure that you’re sending comprehensive application to the organization to help them decide quickly whether they would offer you the grant or not. Include documents such as the proposed budget, a little description of your business, federal tax identification number, present business model, business offerings, recommendations, and proof of profit, loss or no-profit. Fill out each of the forms and proofread them carefully before sending your application.
After sending the application, you generally have to wait for around three to four weeks in order to find out whether your application is accepted or not.
Author Bio: Sean Lee is an experienced financial writer who frequently writes about various aspects of different insurance plans, tips to get fast cash loans, various financial grants available for students and minority businesses etc.
A tempting option too many people who are in need of a loan can be to borrow against their 401(k) plan. The reason why this is so tempting is that the money is there for your use and it is easy to get a loan from yourself. When you go to pay the money back it is like you are paying yourself back. This is a very good advantage.
There are rules to borrowing from your 401(k). The rule that is currently in effect is that you can borrow up to fifty percent of your 401(k) or up to $50,000. The smaller of the two amounts is what you will be allowed to borrow.
Before you decide that this is what you wish to do you should take into account all of the advantages and disadvantages of borrowing against our 401(k). This is a lot of money to borrow and should be borrowed wisely.
There are several advantages to getting a loan from your 401(k). The main advantage is that you will not have to apply for and qualify for a payday advance loan because you are using your own money and borrowing from yourself. Another advantage that is in your favor is that the interest rate will be lower than a regular loan and better yet the interest that you pay will be going back into your account. Other advantages are that you will have five to ten years to pay the loan back in full and of course you will avoid penalties by taking out a loan against the 401(k) rather than taking the money out without using a loan.
When borrowing against your 401(k) you will slow down the growth of your 401(k) account. Many times the loan will be repaid through your payroll deduction plan. This will lessen your amount of the paycheck that you take home every month. This might cause you to have problems meeting your monthly expenses.
A large disadvantage to having a loan against the 401(k) is that if you were to ever leave your job before the loan is paid off you will have to repay the entire balance within sixty days of your termination date or you will have to pay large taxes on the original amount of the loan.
There are many other advantages and disadvantages to taking loans for bad credit out on your 401(k) plan. Only some of these are listed in the above article. Before deciding that this is the perfect idea for your situation you should think hard and long before doing it. There are the possibilities of major tax consequences if your employment changes. This is probably the biggest disadvantage of all of them. Most financial advisors will tell you not to borrow against your 401(k) for this reason.
Borrowing against your 401(k) can be a large amount of help for someone who needs money fast and who has no other choice but this should be used as a last resort.
There are too many risks associated with this type of loan. Other loan options are available and much less risky.
Each business can experience its own hardship, and for those situations, there are grants available for veteran-, minority- and women-owned businesses that might otherwise fail in the start-up or that need help sustaining or expanding the business. The U.S. Small Business Administration also provides tips on starting a business, financing a business and applying for grants. As with any program, grants for minorities and women focus on a niche idea or industry, so find a federal program or local non-profit that shares similar interests with your business.
The federal government isn’t the only institution that gives to small businesses. Local and state non-profits often have funding and resource programs available for start-up companies, as well as discount programs or partnership deals. These partnerships trade resources rather than money since a small business is likely to be more financially insecure. For example, a family-owned electronics business may provide computers for a small community council. The council uses the much-needed technology while promoting the family’s business in its network and giving the family business free services or large discounts. This way, both companies see a benefit in the partnership without spending money needed for other areas of the businesses.
Grants for minorities
Many programs are available to help start or expand minority-owned businesses. A majority of the programs offer consultation, conferences and resources for a small business to become successful. Some programs also offer technology, funding and grants for minorities in specialized areas, such as businesses in underdeveloped communities or minority-owned businesses that support a community.
- The Idea Cafe offers a grant for anyone who has owned a small business for at least six months.
- The SBA promotes economic development through the HUBZone Empowerment Contracting program.
- The SBA’s Office of Native American Affairs is dedicated to finding resources and tools to help minority-owned businesses succeed.
Women-owned business grant opportunities
Opportunities for women-owned businesses include start-up and expansion grants and resources. There are many programs for women who are seeking further educational opportunities, as well as women-owned businesses that give back to the community or focus on the family.
- The Huggies MomInspired Grant Program provides grant funding to women who have innovative start-up ideas or who want to expand on business ideas that will benefit families.
- Women In Defense offers resources and scholarships to working women who are attending school to advance in the defense field.
- The SBA offers loans, educational resources and federal contracting programs to women-owned businesses. It also includes tips for writing proposals and grant applications.
Grants for businesses owned by veterans
Veterans who decide to operate their own business are continuing their service to their country. And to thank these veterans, and encourage them to succeed, local, state and federal programs are available for veteran-owned businesses.
- BusinessUSA offers a listing of state and federal loans, grants and venture capital opportunities.
- The Office of Veterans Business Development is dedicated to finding and applying programs that benefit veteran-owned businesses.
- A variety of loans and assistance programs can be found at SBA.
Many grant programs do not have restrictions prohibiting women-, veteran-, and minority-owned businesses from applying, so research any grant that fits the niche of your business for funding opportunities. It is important to find a variety of funding opportunities because while resources are available, it is not necessary that your company receive specific grants for minorities.
Question by Mkickass!: Does anyone know if there is any small Business grants for women? If so how do you apply?
A friend of mine is planning on starting a buisness and were trying to find grants help please!
Answer by A
Depends on your country, I believe there are some in Canada. Or there used to be. But I wouldn’t know where, sorry.
Add your own answer in the comments!