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Hello,

 

I was wondering if there is such a thing as grants for VA's and where would I be able to locate them? Starting a business is fun and all, but the investment part of it...not so much :mellow: . Any help would be appriciated a lot.

 

Thank you

 

Ajla Kamber

 

Virtual Lightning Administrative Services

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Hello Ajla

 

You can check out the site below for information on grants and loans available for small businesses.

 

www.sba.org

 

All the best in getting your business started.

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I have been looking into this for a while and have not been able to locate anything. Most are for businesses already in business. I think I am going to have to go the loan route which I really do hate but it will be the quickest way to get the start up cash I need. I would like to know if anyone actually received a grant and how they did it.

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You may find the below article interesting. I received it this morning in a StartupNation newsletter. Here's the link if you want to go directly to it because it has a lot of hyperlinked info -- http://www.startupnation.com/pages/article...ess-Capital.asp.

 

 

 

 

Grants to Start a Business : Hidden Trove of Small Business Start Up Capital

by the Sloan brothers

Head Coaches, StartupNation

 

Would-be entrepreneurs often ask us: Where can I get find grants to start a business? And, sadly, some of these individuals pay big money to attend business financing seminars that travel from city to city talking enticingly about “free” government money for your business. All you have to do is pay these folks up front and they will fill out some paperwork for you to apply for these “grants.”

 

Trouble is, the rare few that are available are so highly specialized in research fields that the odds of getting them are astronomical. In practical terms, it is a dead end. Forget about government grants to start a new business. It won’t happen.

 

The U.S. Small Business Administration (SBA) gets the same question daily at their small business Answer Desk. And their response is always the same: “The SBA does not offer grants to start or expand small businesses.”

 

But here’s the good news, and one of the best-kept secrets in the cutthroat world of venture financing. It’s called the Small Business Investment Company (SBIC) program, and it has provided nearly $30 billion in financing (both loans and equity investments) to 90,000 small businesses since 1958.

 

This program is for real. And while it is still going strong, it maintains a low profile by design, so the folks who manage the funds that invest in small companies don’t get totally devoured by cash-hungry entrepreneurs.

 

SBICs - some 450 of them nationwide - represent a uniquely successful partnership between Uncle Sam and private investors. Each SBIC - while licensed and regulated by the SBA - is actually a privately owned and managed investment firm that provides venture capital and startup financing to small businesses.

 

Seed money for some of America’s most beloved businesses originally came from SBICs, including America Online, Apple Computer, Callaway Golf, Federal Express, Gymboree, Outback Steakhouse, Staples, Sports Authority and many more.

 

SBICs also are funding up-and-coming small firms like NetSpend, an Austin, TX-based business that offers debit card processing and marketing services. Two brothers, Roy and Bertrand Sosa who moved their family to Austin from Mexico in 1986, founded NetSpend. They launched the business from their one-bedroom apartment in 1998 with $750. In 2000, several SBICs invested in the fledgling firm, helping fuel a period of rapid growth that landed the company as the National Association of SBICs’ Portfolio Company of the Year in 2003.

 

Catapult to the big time

SBICs have been a marvelous mechanism for catapulting promising small companies into the big time. The government itself does not make direct investments, nor does it select the firms that will be backed. That’s all left to the qualified private fund managers. The funds set their own policies and make their own investment decisions.

 

What the SBA does do is match funds. For every dollar the private funds put up, they are eligible to receive another two dollars from the SBA - a huge boost. Here, the SBA invests alongside private risk-taking investors. And while hardly anyone knows it, this program has made Uncle Sam the largest single investor in U.S. private equity funds.

 

Each SBIC is free to define its own area of interest. Some specialize in specific industries, geographic areas or personal interests of the fund managers. And while all SBICs will consider applications from socially and economically disadvantaged entrepreneurs, Specialized Small Business Investment Companies (SSBICs) make all of their investments in that area.

 

Where to find them

Locate SBICs under the member listings of the National Association of Small Business Investment Companies (NASBIC). NASBIC claims to be the world’s oldest, continuously operating venture capital organization.

 

Yet another organization, the National Association of Investment Companies (NAIC), is geared toward financing for minority-owned business.

 

Our Bottom Line

Small Business Investment Companies (SBICs) are a marvelous financing opportunity for promising early stage ventures investigating grants to start a business and alternative forms of small business start up capital. Unlike many venture capital (VC) outlets that demand quick returns, SBICs have developed a reputation as providers of “patient capital” that small companies need to develop products and foster growth over time. If that sounds like what you need, by all means check them out.

 

 

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SarahG thank you for the article.

 

I was searching the web and found unsecured loans for business startups. I am not sure how exactly they work, but I will look into it.

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Found this post and replies very interesting to read as I have been searching high and low for grants/small business start up funds for some time now without any such luck.

 

It is hard to find such things,let alone in Australia.

 

Anyone with any advice for such finance within Australia?

 

Regards

 

Keira

KMM Solutions

www.kmmsolutions.com.au

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