Government Grants

Definition:

An award of financial assistance in the form of money by the federal government to an eligible grantee with no expectation that the funds will be paid back. The term does not include technical assistance which provides services instead of money, or other assistance in the form of revenue sharing, loans, loan guarantees, interest subsidies, insurance, or direct appropriations

Even in the most economically challenged of times, the governmentis one of the best sources for grants. For instance, the NationalInstitute of Standards and Technology’s Advance Technology Programoffers grants to co-fund “high-risk, high-payoff projects” thatwill benefit American industry. Whatever the project is, you canbet it will be scrutinized by a board of qualified experts andacademia.

The Small Business Innovation Research (SBIR) office is anothergovernment agency that gives grants. The SBIR specializes in smallbusinesses looking for funding for high-risk technologies. Thecatch: Unlike the Advance Technology Program, the technology mustmeet the research and development needs of the federal government.Founded in 1982, the SBIR recently awarded $1.5 billion tostartups, with grants going to software, biotechnology, health-careand defense companies. So if you’re planning on opening a pizzeria,you might have trouble with this one.

But there are federal grants awarded to food and nutritioncompanies. For instance, a pizzeria that caters to children andspecializes in serving nutritious, healthy pizzas may be able towin a grant. You can also check with your state or local governmentto see what’s available–start with your local or state chamber ofcommerce.