You may have been intrigued by the allure of obtaining small business grant money from the federal government to start or expand your operation. As wonderful as it might sound to obtain a government grant that you don’t have to pay back, such grants don’t really exist. You didn’t think small business financing was that easy, did you?

While the federal government does not provide grants for starting or growing small businesses, it does provide a myriad of services to assist entrepreneurs in pursuit of their dreams. One of the mechanisms in place to promote small business growth and economic development is the CDFI Fund managed by the US Department of the Treasury. In the current fiscal year the federal government is allocating more than $12 Million to support CDFIs.

CDFIs fall into three categories:

Community Development Loan Funds

Community Development Credit Unions

Community Development Banks – Including Thrifts and Holding Companies

Community Development Venture Capital Funds

The genesis of the CDFI Fund was the Riegle Community Development and Regulatory Improvement Act of 1994. The reason for the fund’s existence is to foster economic revitalization and community development.

All participants in the CDFI program go through a certification process conducted by the Treasury Department. The certification enables CDFIs access to a variety of programs offered by the Fund. These programs provide financial and technical assistance to CDFIs through the CDFI Program, the Native American CDFI Assistance Program, the New Markets Tax Credit Program and the Bank Enterprise Award Program.

Small business owners should pay particular attention to the offerings provided by the CD Banks, CD Loan Funds and CD Venture Capital Funds.

CD Banks offer a wide variety of financial and consulting services to individuals and businesses living and operating in underserved or economically disadvantaged areas.

CD Loan Funds are set to to offer development and financing services to businesses, organizations and individuals in low-income rural and urban areas. They serve a variety of organization types including microenterprises, small businesses, and housing and community services organizations.

CD Venture Capital Funds are an excellent source of equity or near-equity financing for small businesses in underserved neighborhoods. Many of these funds provide business consulting services in conjunction with financial services.

While Community Development Banks are for-profit institutions with significant neighborhood representation on their boards of directors, Community Development Loan Funds are usually nonprofit entities. Community Development Venture Capital Funds can either be for profit or not-for-profit institutions.

CDFIs provide services around the nation to underserved and low-income populations. There are also a subset to these entities that focus on areas of extreme economic distress, including the Mississippi Delta, the Gulf Opportunity Zone, Native Communities, Colonias, and Appalachia.

If your small business operates in a area of that is underserved, has a significant low-income population or in an area of extreme economic distress, you should investigate how a CDFI can assist you in growing your business.

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In 1953 the Department of Health, Education and Welfare became a cabinet level department in the United States. In 1979 the Department of Education Organization Act split HEW into the Department of Education and the Department of Health and Human Services. HHS is responsible for the health, safety and well-being of residents of the United States. This mandate also extends internationally for cross-border health and safety issues.

HHS administers over 300 programs with a budget of over $737 billion. HHS mission includes a wide range of human issues, including substance abuse, Medicare and Medicaid, childrens health, health disparities, disease prevention and health promotion. It is the largest grant-making department within the Federal Government.

In 1979 the Department of Health and Human Services established the Office of Small and Disadvantaged business Utilization to develop and implement outreach to the small business community. The Office performs its mission through small business fairs, procurement conferences, trade group seminars, conventions and forums.

The Office of Small Business Development, also called OSDBU, is host to Vendor Outreach Sessions that happen twice monthly. The purpose of these sessions is to introduce and educate vendors on the small business program and to provide them information so that they can effectively market their products and services to HHS.

The Department of Health and Human Services is the only executive agency where Small Business Specialists report to the OSDBU Director. These Small Business Specialists are located within the eleven agencies of HHS.

Every day, these Specialists work with Contracting and Program Office staff, so as to determine the best acquisition strategy; they also work to make their approach unified so that when vendors deal with Health And Human Services, this unity will benefit them.

Currently, HHS does not provide grants or loans to help small businesses get going, but it is in fact the largest organization to make grants within the federal government. It has over 300 grant programs today, and it handles mission-specific topics, which are in turn delegated among the various HHS operating agencies. The Catalog of Federal Domestic Assistance profiles all Federal grant programs; these provide financial assistance and include HHS programs. In addition, specific points of contact for obtaining applications or additional information are also provided.

Vendors who are interested in doing business with Health And Human Services do not have to have any special certification, but instead, the Small Business Administration provides certification to firms under the Business Development Program, the Historically Underutilized Business Zone Program, and the Small Disadvantaged Business Program. Businesses that are Women-Owned, Veteran Owned, Service Disabled Veteran Owned, or Small Businesses are generally managed with self-certification. Self-certification is not challenged unless or until an interested party or competitor provides protest to it. In addition, an HHS Contracting Officer may request that the SBA provide a size determination.

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Most people are not aware of the limitless possibilities attached to business grants that can be sourced from government coffers. If you have decided on starting a new business and you feel constrained by finances, grants are a good way to keep afloat. Information on current grants can be gotten from trade associations, business colleagues, from entrepreneurship foundations and online via the internet. The big advantage attached to business grants is that they do not need to the repaid.

Regardless of the type of business you have decided to engage in, there is a government grant available for you. All you need to do is research well for reliable information. The government is interested in giving out these grants to deserving companies and budding entrepreneurs because it is believed that these businesses will help create jobs and improve the economy. For instance, in the United States, all agencies offering business grants are listed in the Catalogue of Federal Domestic Assistance (CFDA), including information on the category and business type that qualify for specific grants. Also, this catalogue is updated periodically to accommodate new grant agencies and categories.

To qualify for these grants, you should have a very detailed business plan that shows everything down to the basics. Your target market, projected sales figures, turnover, profit margin, marketing strategies and everything about your business must be put together in a well structured proposal if you wish to win these grants. Do not forget to include all expenses that would be incurred in the operation of the business, and the level of expertise that would be required to achieve the objectives of the business. This is because the grants are administered by successful and experienced business managers including rigorous grant officers who read between the lines. Also, the government wants to ensure that its money goes out only to businesses who can utilize the funds granted judiciously.

Furthermore, you should ensure that you tailor your application documentation in line with the requirements of the grant in question. As a business, you can apply for different grants, but you can not deploy a “one size fits all” application model if you want to be successful. Remember that there are numerous business owners out there competing for the same grant you are applying for.

You might feel that the processes involved with applying for grants are too tedious, but you have to be resilient. Remember that “Nothing good really comes easy”. Finally, when you win a grant and your business starts to blossom, you will forget that you ever went through any stress.

As we enter more and more into one of the worst economies of our time, many people are concerned about their future, and rightly so. But in times like these, often lies the greatest opportunities.

Things are tough right now, but i don’t have to tell you. Millions of people are defaulting on their mortgages, and are or about to lose their homes. This due to the subprime fiasco. The unemployment rates continue to climb as more jobs are being lost. Now more than ever, everyone realizes the illusion of job security. The national debt seems beyond control and the value of the dollar is tanking fast. If we’re not careful, we’ll soon be on the verge of another Great Depression. People are scared.

You’re probably like a lot of other people right now. Maybe you stay awake at night wondering if you might lose your job. Maybe you already have. Maybe you’ve lost a significant portion of your retirement funds, at the same time accumulating more debt. You hear about these big corporations getting bailouts from the government (although the “corporation” as we know it may be extinct in the next 21-25 years). So, where’s your golden parachute?

Although things seem bleak, these in fact could be the best of times, as one of the greatest transfers of wealth is about to occur. The old ways of doing things will be forced aside to make way for the new. Brand new opportunities abound for those who recognize them. Instead of being frightened, you should embrace the current circumstances and take a different direction. Either with the business you have now or the one you’ve been thinking of starting.

It has never been more important to take action and apply yourself to work smarter and learn how to build your own business. What’s the best way to build your business successfully in this new economy? Learn to use the low cost marketing on the web. Online marketing is proven to be one of the best and most lucrative ways to conduct business and create extra income or replace your current income stream altogether. In fact many are flocking to this still young business model and are transforming their lives.

These days, there’s never been a better time to be in business for yourself. And for some, may never see another opportunity like this again. Among many is an increasing interest in starting a home based business.

Leveraging the speed, low cost, and the tremendous reach, marketers use the internet to sell just about everything. From baby apparel to automotive parts to information products. Buying online is faster, more efficient, saves on fuel and makes it ridiculously easy to do comparison shopping. And with very little overhead, it can be extremely cost effective.

Despite the weight of the recession being felt in many other areas of the economy, sales made online continue to grow exponentially. Because of it’s speed, performance and the amount of options there are, the internet has become the exclusive method for making buying decisions, doing all types of research, and entertainment. As Bill Gates said ” if your business is not on the internet than your business will be out of business.”

To recap, millions of people have lost not only their jobs, but their faith in government, and are desperately looking for other avenues of income. With the internet still in it’s infancy, starting an online home-based business would seem a pretty good alternative to seeking employment in a hectic job market.

Like all business, marketing in cyberspace is not without it’s own risks. Along with all the various pitfalls one finds in business, there are many new things to learn. New skills sets to be acquired as well as a great deal of personal development to achieve. But the rewards make it all worthwhile.

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