# Government grants



## flightless_beaker (Jan 14, 2011)

Just wondering if anyone out there has any experience with getting government grants to start a business.

Here's my situation. I got laid off from the studio i worked for a month ago. I've always done some stuff on the side, pretty much as favors for people I know and volunteer. I've always wanted to start my own photo business and the problem was startup money since what I make usually goes to paying bills and stuff. I have enough equipment to do small shoots but I'm not fully comfortable using what I have....unless I'm outside, lol. I'm working on a budget to see what else I need and how much I need. I do have a pretty clear business plan that I'm working on. Only thing I haven't worked out yet is my pricing.

Guess my question is, where would be a good place to start and contact? What are other people's experiences with government grants? Should I be considering other financial options? Also, I live in NJ.


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## orljustin (Jan 14, 2011)

The bank?

I certainly wouldn't be happy funding someone's business with my tax money, when I need it.


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## KmH (Jan 14, 2011)

Do you know how to write a grant proposal?

There are local and regional art associations.
Local and regional non-profits that support and encourage the arts.
There are state and federal agencies that fund art work.

The total comes to about 3.5 billion $$$'s a year here in the US, just to support art. 

Are you willing to relocate? There are co-ops that will provide you a place to live and provide the expenses nededs to complete a project you want to do.

And that is a key - a project. Not some undefined something.

You will have to contact and talk to quite a few people to discover all the threads and learn what it is you need to know to find financial support.

Start locally.


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## KmH (Jan 14, 2011)

orljustin said:


> I certainly wouldn't be happy funding someone's business with my tax money, when I need it.


Get unhappy then, because you already do and have been doing so for as long as you've been paying taxes.


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## flightless_beaker (Jan 14, 2011)

orljustin said:


> The bank?
> 
> I certainly wouldn't be happy funding someone's business with my tax money, when I need it.



Its there and if I don't try to get some, someone else will.



> Do you know how to write a grant proposal?
> 
> There are local and regional art associations.
> Local and regional non-profits that support and encourage the arts.
> ...



Sweet. Thanks for the info. I've written a grant proposal a long time ago back when i was 16/17. No idea how I did that, lol. 

That's interesting on the coop. But would starting a small business qualify as a project? I dunno. I'm looking for a small business grant. Not really willing to relocate or anything considering I want to start my business at least locally.

Would going to my local Chamber of Commerce be a good starting point?


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## heyjoe (Jan 14, 2011)

Check with your local state legislator and local congressman/woman. Their offices often have lots of resources. Also, check your local universities. They may have a small business development center. These SBDCs are often really helpful.


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## CCericola (Jan 14, 2011)

Contact the State of _New Jersey_: 
_Small Business_ Assistance Program
101 South Broad Street
Trenton, NJ 08691
(609) 292-3600


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## orljustin (Jan 14, 2011)

KmH said:


> orljustin said:
> 
> 
> > I certainly wouldn't be happy funding someone's business with my tax money, when I need it.
> ...



You'll have to excuse me then.  I don't mind grants for worthy projects like establishing neighborhood gardens or cleaning up rivers and such.  But to just hand out money to people just to basically get something for free tweaks me a bit.


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## flightless_beaker (Jan 15, 2011)

orljustin said:


> KmH said:
> 
> 
> > orljustin said:
> ...



Seeing as this country was founded on following your dreams even if it means going into business for yourself. Small businesses were what made this country great. In today's times with big corporations holding such a high market share in many markets, it is a lot harder today to start a small business, especially with the crappy economy right now makes it even harder. I don't mind seeing my tax dollars going to the little guy trying to follow their dreams and start a small business, especially given the times today. And I'm not just saying that because I'm trying to start one. I'm all about the government helping the little guy better themselves and the lives of them and their families.


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## flightless_beaker (Jan 15, 2011)

CCericola said:


> Contact the State of _New Jersey_:
> _Small Business_ Assistance Program
> 101 South Broad Street
> Trenton, NJ 08691
> (609) 292-3600



Perfect. Was basically looking for something like that. Thanks so much! Call them on monday and let you all know how it goes.


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## KmH (Jan 15, 2011)

orljustin said:


> You'll have to excuse me then. I don't mind grants for worthy projects like establishing neighborhood gardens or cleaning up rivers and such. But to just hand out money to people just to basically get something for free tweaks me a bit.


By helping a business get started, they generate a new source of tax dollars.

Not only does the new business owner pay income taxes, they also pay business income taxes. For states that have them, there is also a new source of both sales and use taxes.

Many small business also provide employment and of course they contribute to the state unemployment insurance fund.


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## TXshooter (Jan 15, 2011)

Isn't that for employees though? Just asking as I don't know.


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## CCericola (Jan 17, 2011)

TXshooter said:


> Isn't that for employees though? Just asking as I don't know.



Businesses pay quarterly taxes on the same.


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## Infidel (Jan 19, 2011)

orljustin said:


> You'll have to excuse me then.  I don't mind grants for worthy projects like establishing neighborhood gardens or cleaning up rivers and such.  But to just hand out money to people just to basically get something for free tweaks me a bit.



Federal grant dollars are _extremely_ competitive. Worry not... no one is getting something for nothing (and if they are, it's the exception, not the rule). In terms of Federal research grants (NIH, etc), a good chunk of submitted proposals get triaged (binned) without even being reviewed.


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## wannabephotog (Jan 24, 2011)

No, there are no government grants available to start a small photography business (or most any business). It is a myth.

This is from the federal SBA site (Small Business Association):
"_Government grants are funded by your tax dollars and, therefore, require very stringent compliance and reporting measures to ensure the money is well spent.  As you can imagine, grants are not given away indiscriminately....Some business grants are available through state and local programs, nonprofit organizations and other groups. For example, some states provide grants for expanding child care centers; creating energy efficient technology; and developing marketing campaigns for tourism. These grants are not necessarily free money, and usually require the recipient to match funds or combine the grant with other forms of financing such as a loan_."

I spent years advising people on how to start their own businesses and this was by far the most asked question. Even after showing them from various government websites and quoting the head of the SBA saying that he has never seen anybody obtain a government grant to start a for-profit (that is the key) business, they refused to believe me. I have seen too many people waste years looking for government grants. They don't exist.


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## Bitter Jeweler (Jan 24, 2011)

flightless_beaker said:


> I have enough equipment to do small shoots but I'm not fully comfortable using what I have....unless I'm outside, lol.


 
Don't give this bit to the loan officer...:er:

What do you need a loan for?


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## wannabephotog (Jan 24, 2011)

flightless_beaker said:


> Should I be considering other financial options?


 
The only real option to obtain financing for a business is your own savings or borrowing from friends and family. You will most likely not qualify for a bank or SBA loan. I have extensive experience with this subject matter. 

To qualify for a small business loan you need to come to the table with 30% of the required funding already on hand (cash), plus experience in the industry (management experience), plus strong collateral plus excellent credit score/history. Even for a micro loan the requirements are basically the same.

One other option is prosper.com. Peer to peer funding. But even that is not as easy as it looks. 

Bootstrap funding is about the most realistic approach.


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## mishele (Jan 24, 2011)

The Gov. is going to make you jump through hoops to get money. The process is also very long. I wasn't looking for a grant but a small biz loan. It took 2 weeks just to get someone to talk to me. He also told me that I shouldn't expect any kinda answer from them for 6-8 months from the point I got all my paperwork in. That still didn't mean that I was getting any help. I was better off doing directly through a bank w/ a higher interest rate. 

I can't even imagine what they would have you do for FREE money.

If you do it......let us know how it all works out.......=)


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