Capital sources: Grants

Grants are money that is given to you. They don't have to be repaid. However, most grants have very exacting criteria and tend to be in specific fields such as arts, education, medicine or agriculture. The application process can involve reams of paperwork. While worthwhile if your business qualifies, remember that many others are trying for the same grant.

There are several places to start a grant search, such as the Catalog of Federal Domestic Assistance and the Federal Information Exchange. The Foundation Center is a good source that also includes a "Users-Friendly Guide" on beginning your grant search and writing a proposal. While searching and applying for grants can be time consuming, the rewards can be substantial.