Government Funding

The bank is not the only source of money for businesses looking for financial assistance. In some cases, government funding can help your business grow. It may be difficult to get this assistance, as many restrictions and stipulations apply, but it is possible. New entrepreneurs can make use of the government grants, subsidies, and low-interest loans out there.

The government is very selective when offering funds. It does not simply give money to a recipient. You need to match your company to a program and meet the stringent criteria. The largest category of government funding promotes "affordable housing." These programs created encourage real estate development. Another large category of funding involves encouraging small-business activity in underprivileged locations. Large grants and subsidies are materials-cost subsidies, reconstruction grants, rent and mortgage subsidies, and very low-interest loans to fix residences in poor neighborhoods. Government funding is also available to certain minority-owned businesses based in typically unattractive inner-city areas. Businesses that engage in some types of healthcare activities are also prime recipients of government funding. These businesses include inner city clinics and pharmacies. Inner city and rural transportation companies, as well as community development and educational ventures are also attractive to the government, which aims to aid underprivileged rural and urban areas. The government also seeks to help organizations dealing with the developmentally disabled, as well as companies researching and developing types of alternative fuels.

While government funding may not be available for every business, if you are an entrepreneur with a company or idea in these fields, you may be eligible to receive aid.