I am writing this piece to hopefully save an entrepreneur both time and money when researching the myriad of funding opportunities and methods to start their own company.

To effectively do so, here is some background. I have been researching funding for my communications business since the fall of 2007, and it was suggested to research government grants for businesses, as well as SBA loans and microlenders. Bear in mind that as a communications business, the goal of my company is to help clients communicate their goals or get the word out by leveraging the power of the media. Thus, it is s different type of business because we do not dedicate ourselves to just one project or cause.

First, most government grant money for business is reserved for technology and research.

Second, government grant money for women and minority-owned businesses does not exist. Before you say, "yes it does," here is how the process actually works (and has been confirmed to me via several of the recommended agencies and programs that support women and minority-owned businesses): The government sets aside X dollars per year that fund programs that support women and minority-owned businesses. Those programs/agencies are required to fulfill or secure a specific number of loans per year (to continue qualifying for those government funds). These programs can help you when applying for an SBA loan by possibly getting a longer payback time, lower interest rate, etc. However, don't expect free money for a for-profit business and by all means, do not waste your time purchasing grant CDs and software.

Third, Beware of government grant scams. Do not, under any circumstance, send money to any company or agency. If they send you a contract, have your attorney review it or exercise sound judgment and research the company. A government grant scam that contacted me is www.themscompany.com located in Florida. Report these companies to the FBI immediately.

Utilize all of the resources at your disposal. Some of the best advice I received was from business development agencies. One gentleman in particular said that if I could get a few people to do straight co-signs to help me get the SBA loan, that banks look upon that favorably since the risk is spread through multiple parties. He also recommended keeping my full time job for the time being because that shows the bank that someone has cashflow.

Last, utilize your local SBA office. They have a lot of information and are willing to give it. Shop the banks and compare them because they are competitive and want your business. Make them work for getting you as a client!

Good luck!

Learn more about this author, Kim Tracy.
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