Getting these loans or grants isnt always easy, but it is possible, and we hope this information sends you on your way. Good luck with your idea. Five small business Grant Resources Sometimes even the best business concepts dont come to fruition due to lack of funding. Lending sources may refuse funding for multiple reasons. For example, you could have a strong business plan but cant qualify for traditional bank financing because you lack sufficient collateral. Or maybe you cant come up with a sizable down payment, or your business doesnt have a long enough track record. Fortunately, there are grant programs available through government agencies and private organizations. Here are five of the top sources of small business grants: 1. While the SBA does not offer grants to start or expand small businesses, it can help connect you with government resources for business grants. Each state has an agency that administers business grants. Agency names vary by state, but usually the Department of Commerce or Economic Development Agency is responsible for disbursing business grants. Find out about Minority Business Loan Programs.

This site hosts an extensive directory of more than 2,000 economic development agencies, consultants, and associations worldwide. Links are constantly being updated, providing access to economic development information for business people, real estate departments, consultants, and brokers. This subscription service also offers an extensive amount of free information. It also offers a helpful online orientation to grant seeking, which will take you through the funding research process step by step. The subscription fee entitles you to access its directory of more than 80,000 grant makers. You Can Do to Increase Your Chances of Getting a Business Loan: There are a number of things you can do to improve your chances of securing a bank loan. Here are five of the most important: 1. Have a sound business plan. Having a solid business plan is your best shot at getting a loan. Its especially important to polish your executive summary. Another way to improve your chances of getting a loan is to put some of your own money on the line. Lenders typically like to see that owners have at least a 25 percent equity stake in the businesses they finance. Bankers also favor businesses that plan to rent rather than purchase a building. Thats because lenders prefer that you invest in assets that generate income, like inventory and equipment. Bankers also frown on high renovation costs. Check out your credit report.

Reviewing your own credit report before you start the application process can also put you ahead of the game. Lenders use your personal credit history to help them decide whether youre a good risk for a loan, so it pays to know what theyll find. If your report shows a mistake, contact the credit reporting agency and demand a correction. If your credit report shows legitimate late payments or bankruptcies, you should include a letter with your application explaining the circumstances and how theyve changed.