Unless your business involves the development of new technology or is a non-profit organization, it is difficult or impossible to find a grant to start or expand a small business. A representative from the Small Business Administration answered a few basic questions on this issue:
QUESTION: Are there any grants to start a business?
ANSWER No. Even though many publications and talk shows publicize grants to small businesses there is only one grant available and that is for research and development for technology based products and services for the government.
Certain types of government grants are available to small businesses. These include the SBA's "Small Business Innovation Research" (SBIR) and "Small Business Technology Transfer" (STTR) grants. More information is aailable on SBA's webite at http://www.sba.gov/aboutsba/sbaprograms/sbir/index.html Grants from other agencies may also be available for new technologies, inventions, or products.
QUESTION: Can I get grant money for my small business?
ANSWER: There is no federal grant money for individual business owners.
If you are looking for funding for an existing or new for-profit business, you are unlikely to find it. Government grants are generally (though not always) given to non-profit organizations for programs and services that benefit the community or the public at large.
Grants to Individuals
Grants to individuals are most often given for educational support (financial aid), the arts, and various types of scientific or other research, although some agencies award grants to individuals for other purposes. Again, good research is the key to finding this information. If you are looking for financial aid to begin or continue your education, there are many other excellent sites on the Internet that contain information on this subject.
Not-for profit organizations can get information from the University of Delaware Center for Research and Service. Their web site contains loads of useful information and links to other resources for non-profits http://www.udel.edu/ncrc/