Where's the Grant Money?

Grants are just one option. Consider angel financing in your quest for start-up capital, too.
Magazine Contributor
3 min read

This story appears in the October 2001 issue of HomeOfficeMag.com. Subscribe »

Q: I've looked into several different types of grants, foundations funds, etc., and I don't seem to fit the requirements for any of them. I don't need hundreds of thousands of dollars to get set up, so I keep running into dead-ends. I have spent several hundred dollars on books about grants and the like. I can't even seem to work with the SBA-I just don't have that "little" extra for a microloan. What do you suggest?

A: You're coming to grips with the fact that not only does it take money to make money, but too often it takes money to get money. But we have heard many stories of people who get started with $100 or less. How do they do it? Some take temp work to pay for at least their living expenses while they get underway. Others continue to work a full-time job but unlock an instant stream of cash by reducing the amount withheld for taxes in anticipation of the business loss they expect during their first year. (Do check with a tax professional before doing this, however.) But many others turn to people they know-often relatives or friends-and sometimes to people they do not know well. In other words, an angel.

A local angel may be a doctor or other professional you go to; doctors often invest in local companies. Check with your nearest Small Business Development Center or SBA office for help locating angels. Even with someone you know, be prepared to present a credible business plan, and expect to sign a formal loan or investment agreement.

And you don't necessarily have to give up on the idea of getting a grant, either. While grants for start-up money are few and far between, there are a few worth checking out:

  • Count Me In for Women's Economic Independence offers loans of $500 to $10,000, $5,000 for start-ups.
  • The Amber Foundation awards monthly grants to women looking for seed money to start an online business. A $3,000 grant is awarded for first place, $1,500 for second and $500 for third. Grants are awarded based on "mini" business plans submitted for the competition.
Check out the following books in your hunt for start-up funding:

Paul and Sarah Edwards' most recent book is Changing Directions Without Losing Your Way. Send them your start-up questions at www.workingfromhome.com or through us at Entrepreneur.

More from Entrepreneur

Grow Your Business at Entrepreneur LIVE! Join us on Nov. 16 in Brooklyn, NY, to learn from legends like Danica Patrick and Maria Sharapova, pitch our editors, meet with investors, and potentially walk away with funding!
Register here

One-on-one online sessions with our experts can help you start a business, grow your business, build your brand, fundraise and more.
Book Your Session

In as little as seven months, the Entrepreneur Authors program will turn your ideas and expertise into a professionally presented book.
Apply Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.