A lot of money is involved in starting a business, but there are also plenty of ways to get your hands on the funds without applying to a bank for a loan or asking your family for money. Business startup grants provide solutions for many entrepreneurs, but not all. Grants are not easy to obtain, so some people would say it is easier just to borrow money.
One reason these grants are so hard to access is that there are specific criterion the government is looking for when reviewing applications. There are always more people in search of money than there is money to give. Non profit organizations frequently satisfy the expectations of a grant committee. There are various types of grants available, so you have a better chance of success and will qualify more quickly if you apply for the correct one and follow instructions carefully.
Direct grants are similar to cash awards, but you have to use the money in particular ways to qualify. For instance, you may have to spend the money on training or capital investment. Unfortunately, with a grant like this, the applicant needs to provide a substantial investment of his own, up to 50%. This might be too high a price to pay before a business gets going and makes money.
A repayable grant is like a loan. The government does not expect it to be paid off until you are making a profit. As your profits grow, you finally start to repay the grant. Fortunately for you, if the business is not successful, your grant is written off, so there is no financial burden hanging over your head. As a result, the government rarely provides grants of this kind. If you foresee problems paying off the grant right from the start, consider taking out a version of this, called a soft loan. The repayment expectations of this type of grant are especially lenient.
These are just a few examples of the kinds of business startup grants that are available. Of course there are other, easier ways to get money if you do not mind paying interest.