Building Indiana...One Business at a Time!

Text Box: A Message on Grants ♦ You may have heard that there is free    money out there to be given away to small    business owners. This is not necessarily    true—most small business owners obtain    financing through loans and their own    personal funds. The difference between a grant and a loan: ♦ A grant is essentially “free money” that    does not have to be paid back. A loan is    “borrowed” money that will need to be    repaid, often with interest. The    government’s grant program is very limited    and described more below. The    government’s loan program is through the    Small Business Administration (SBA). SBA    loans are guarantee loans made through    local lenders. For more information on SBA    loans see our other publications. ♦ While grants provide money that does not    have to be repaid, they often require the    recipient to provide matching funds. For    example, you may need to come up with    $10, 000 before the grantor will give an    additional $10, 000.  

Text Box: Are there any grants out there for your business? Grants all have different requirements for eligibility. However, the majority of grants are given by foundations to groups of people who are looking for money to support a good cause. Examples may be: ♦ Scientific or medical research ♦ Educational programs ♦ Environmental programs The Small Business Innovative Research Program is the government’s grant program. It focuses on research and development for the commercial sector. For more information contact the Industrial Research Liaison Program through Indiana University at 855-6294, or look over the following websites: http://www.sba.gov/SBIR/ http://www.grants.gov http://www.cos.com Most grants do not fund the usual retail, service, or manufacturing business idea. This is not to say that there is not something out there that will fit your needs. However, it is the responsibility of the business owner to do the research. The Business Plan For any grant or loan, you will need to write a business plan or proposal. Any lender or grantor will want to know the reasons why they should give or lend you money. The Small Business Development Center has free counseling services to give guidance in writing a business plan.  

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Text Box: College of Business • Indiana State University Small Business Development Center • Ninth & Sycamore Street•Terre Haute, IN 47809 Tel. 812-237-7676 or 800-227-7232 •  Fax 812-237-7675 Page Maintained by: Heather Loosemore   Last modified: • Copyright © by Indiana State University