How To Get Business Funding from the Government

First of all, it's important to realize that getting funding from the government for your business is possible. It's all a matter of knowing what to do to get it. Here's how you can start.

Know the general details of government funding in your area. Of course, it depends on where you live as to what the available government loans you can take advantage of are, and the procedures for obtaining them. The key here is to do some research. If you live in the United States, for example, go and check sites for the Small Business Administration, which provides funds to start-up entrepreneurs, or the Federal Funding Program. Again, just begin by finding out which government agency applies.

Just do note that generally, government funding is granted to businesses that aim to promote community well-being, and not solely to generate profit. For instance, your business has a better chance of being approved for funding if it focuses on improving lives at disadvantaged areas (example, by building community centers or health clinics), if it would provide convenience to the community (example, mass transport) or if it involves hiring and training locals as part of the work force.

Read on the prerequisites to qualify for the program. Find out which category your business belongs to. Is it for research and development? How big are you planning it to be? Who are your target clients? From there you could determine which loans you qualify for. Also, you would also find out how what you'd have to adjust in your plans, if there are any, in order to meet a particular program.

Know also about some factors that could better your business' chances of being approved for a loan, for example, if you are a war veteran, disabled, or a low-income borrower.

Create a solid, concise business plan. This is a must since what you are doing here is selling your idea. You'd need to put in specific terms what your business goals are, your short-term and long-term working plans to achieve these goals once it gets funding, up to the smallest details to show that your business idea is well-thought out. Include an executive summary as an outline that is easy to understand. Make sure to reiterate that this business you are planning will be beneficial to people in the community.

Clean up your own records. What qualifications do you have that prove you are able to carry out your plans? Make sure that you write your resume to focus on points that show you to be credible and to have some experience in the field.

Network. This is vital in any business venture. You'd need all the contacts you can get.

Check your credit score. If your credit score is healthy then it just adds to your credibility. It is good to note, however, that in the US this factor does not have too much weight in their considerations for approving funding for your business.

Be prepared to shell out some of your personal finances. It wouldn't be often that you would get 100% funding on your business, so make sure that you have enough in personal savings that you could afford to contribute some of it to the business venture. It's all part of the risk that you have to take as a businessperson. 

These tips serve as guides.  Remember always to use sound judgment when you're embarking on any venture. Good luck on your business!


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