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Everything You Need To Know About Business Grants |
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Why Business Grants Exist
Starting or expanding a company, whether it is at an alternate physical location or in your own home, can be very difficult to do. It can easily require money that most individuals do not have upfront. Therefore, small business grants were created by the federal and state governments to help entrepreneurs. Why would the government care about helping people fund their businesses? Well, because the government is interested in your tax dollars. Every business has to pay taxes, and the government understands that by helping you get on your feet - it will eventually mean more tax revenue for them. In addition, small businesses drive the economy. The more successful your business becomes the more taxes you will pay, and the more people you will employ - who will also be required to pay taxes. If your company is successful, it is also very likely that you will be keeping other companies in business. In many cases, the government will also promote SBA loans from the Small Business Administration - a federal government agency. Although this type of funding is required to be repaid, it is another initiative designed to help the small business community grow. Often, the repayment for these types of loans is at a lower-than-usual interest rate. Business grants are also given by corporations for community relations purposes. Many major corporations like General Electric, Ford, Wal-Mart and others have foundations that they use to give away money away to charities, relief efforts, and grant recipients. This helps the company to have a good image in the public eye, which supposedly encourages customers to be more loyal. Most grants given away by major corporations are in the form of scholarships for college. However, several do give actual business grants to low-income families and individuals who want to become business owners. |