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If youve been watching those late night infomercials, you may be convinced that the US government is giving away Free Money to just about anybody who needs some. Your savings and even your home may be at risk if your business fails, so the thought of a free government grant to start your business is very tempting. Grants are given by an organization or local government officers to a business in line with their particular projects success.

In return, you have to pay a 2% of your outstanding loan each year to the business service sector of the government who helped you acquire the loan. Small business loans are now available from a wide range of sources both government and private. Different kinds of government small business loans are now available to people with small business ideas in need of start up finance.

Application

A firm seeking small business grants is required to submit an appropriate application form. The application is then processed by the financial institution giving grant. It's not as easy as filling out an application and you get a check in the mail. Where capital grants or substantial grants for research and development are concerned, and some others, the application procedure and forms are complex. It is thus difficult for outsiders to know or understand exactly what points would favour their application as opposed to those which would condemn it.

Federal

The Federal government provides assistance for entrepreneurs who want to excel by means of grants under different schemes. The grants can be from the federal government, state government or from the agencies. One of the best places to research the availability of business grants and loans is the Small Business Administration, an agency of the federal government with a mandate to help business, especially small business succeed.

About the Author: Lance p. is the owner of Government Grants Guide, the BEST information about government and student grants. Visit http://GovGrantsGuide.com for more informations