Government Business Loans You Don't Pay Back

There's a type of government business loans that small business owners and entrepreneurs can receive that provide free money that never has to be paid back. While there are outstanding loan programs that will offer low interest rates, small business grants give the money you need to you with no expectation that you will ever repay.

The difference is that a government business loan can provide you with all of the money you need to start up or expand your business. Small business grants from the government, on the other hand, tend to be given away for $20,000 - $50,000. Chances are when you obtain government grants for small businesses, you'll also need to find additional financing to reach your financial needs.

As long as you use this money for the purpose outlined in your small business grant application, this alternative to the government business loan will never have to be paid back. That doesn't mean that they come with hefty restrictions either. You can often use this money to buy new equipment, purchase office furniture, hire employees and make payroll, and to lease or purchase office space. If you source your products internationally, you can even obtain small business grants that will pay for those materials and products.

There are numerous grant programs that you can apply for, regardless if you are just in the planning stage of starting your business or are looking to expand. While these alternatives to government business loans are available for any American citizen over 18 years old to apply for, you may be surprised to see that there are also hundreds of private foundation grants that will provide you with the financing you need as well.

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