Are Grants for Home-Businesses Real or Just a Myth?
Every upstart home business needs money to get off the ground, and for the entrepreneur, finding that money can be one of the greatest challenges to starting their business. However, if you believe the late-night infomercials, the federal government has millions in cash reserves just waiting to be claimed by business owners in the form of home-based business grants.
Unfortunately, these types of grants are extremely few and far between, and even when one is made available, it does not come from the government. So, what is the deal with all of the rumors being spread about home-based business grants? Here is the truth, as much as you might not like it.
The Business Grant Scam
Many of those late-night infomercials touting the government’s cash reserves for business grants are made for the sole purpose of selling books and related information that are of very little value to the customer. They entice the viewer by telling them that all of this free money is just sitting there waiting to be claimed and only they have the information the viewer needs in order to collect it. In many cases, they charge up to $100 for a list of organizations offering grants to home business owners, and while the list does include grant-giving organizations, they rarely include any that are specifically made for home-based businesses.
Does the Federal Government Offer Grants?
The federal government only offers grants to businesses that are classified as non-profit or charitable organizations. They do not provide grants to people looking to start their own home-based businesses.
The Small Business Administration does offer grants for small businesses, but they rarely include home-based businesses. Instead, these grants are used to help existing businesses expand their technology resources.
Are All Home-Based Business Grants Scams?
No. While rare, occasionally a company or an organization will offer a grant for a home-based business. Competition for these grants is very strong and in most cases, when awarded, the business owner must provide the issuer of the grant with information like production benchmarks or routine written reports in order to continue receiving funds from the grant.
How Can Home-Businesses Get Money from the Government?
While the government does not issue grants for home-based businesses, it does offer several different loan programs that small business owners can apply for. Many of these programs are put in place to help women or minority business owners obtain funding to help start their businesses.
Additional Grant Information
The most common resource for home-based business grants is your state’s economic development office. Occasionally, a state will offer grants to business owners, so checking with your state’s economic development office is your best step to finding out if one is available in your area.