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Yes, there are business grants, but none of
them is a free lunch.
Dear Small Biz Adviser
I am looking for information on grants and how to apply. I am trying
to set up a home medical billing business. I have found plenty of
sites that show that grants are available; however, those sites
do not show where or how to apply. Thank you in advance for your
assistance with this matter.
Ann
Dear Grant Seeker:
In recent days I have received several inquiries about business
grants. It is not a favorite subject for me, because most people
approaching me on this matter had visions of being able to access
free money because they may be a minority, or small business, or
some other designation that is popular with politicians at the time.
Let me clarify this matter right now. There
are grant funds available for business enterprises. But the designated
use of those funds, types of enterprise eligibility and location
requirements are so diverse that I will simply give you a description
of some of the more accessible funds and places where you can go
to learn more about them.
First off, the most well-known business grant
is really a reimbursement program funded through the Workforce Investment
Act of 1998. Throughout the United States, these funds are administered
by Workforce Development Boards, formerly known as Private Industry
Councils. The most common program is one in which the business enterprise
hires a client from the local Workforce agency, trains him or her
on the job and receives a reimbursement for a certain percentage
of the total wage paid the new employee. The reimbursement is for
the period of training up to a maximum number of weeks.
One near me, the Palm
Beach County Workforce Development Board, is one of the finer
examples of such an agency that excels in publicizing its programs
on the Internet. Expect your company to be screened to determine
if it is qualified to take advantage of this program.
A second popular program accessed by large and
small firms alike is the Work
Opportunity & Welfare-to-Work Tax Credits program administered
by the U.S. Department of Labor. Employers receive a 40 percent
credit on the first $6,000 of wages paid to new hires employed 400
or more hours. The credit for those employed 120 to 400 hours is
25 percent. To qualify, the employees must fall into one of eight
categories -- mainly youths and low-income workers.
Various state and local governments fund grants
specific to their local economic needs. For example, the state of
Kansas offers grants to companies that plan solid
waste programs that comply with the mandates of that grant fund.
One county in Florida offers grants to qualified businesses for
moving their business enterprise and creating a number of new jobs
within that area. I have noticed grants of up to $20,000 or more
per new job created. I also recall cities and smaller municipalities
offering reimbursements of business expenses for renovating facades
of their storefronts in certain, run-down business districts.
The U.S. Department of Commerce offers a menu
of business grants through its Office
of Small & Disadvantaged Business Utilization Web site.
The site even provides hyperlinks to other federal agencies offering
business grants.
When it comes to small business, everybody thinks
of the U.S.
Small Business Administration. Go to the SBA
search engine, type in "grants" and you will get a listing of
more than 1,500 hyperlinks. You will notice that the titles for
many of the hyperlinks will clue you in to the type of business
considered for each of these grants. The engine will even conduct
a search of the entire Internet.
Our last stop is at Empowerment and Enterprise
Zones. These are programs administered by federal, state and local
governments in an effort to revitalize specific geographic regions
that have experienced high unemployment or the significant exodus
of businesses. The case of Chesterfield
County, Va., is a prime example in which federal, state
and local governments work collectively to revitalize specific geographic
regions by providing businesses with tax rebates, subsidizing costs
of relocation and more.
I know you have heard a lot about grants for
"free" money. I would urge you to use caution when interpreting
the definition of that word. I do not believe any grant
money should be termed as free. It is free in the sense it is not
a loan that has to be repaid. But all grants require the qualified
applicant business to fulfill specific obligations. The business
has to meet certain criteria that are addressed in each application
form and the informational brochures.
Consider the examples I cited. Check the hyperlinks
I have listed, and contact the local offices of federal, state and
local governments in your area. If those grants exist and your local
officials are aggressive on economic development, they will give
you leads.
I do wish you well.
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-- Posted: April 21, 2000
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