Grants
Many entrepreneurs are looking for cheap sources of cash to get their business going. Well, we hate to break it to you but there really aren't any. Neither the U.S. Small Business Administration nor other agencies offer "free money" for starting or developing a business. What grant money is available is primarily for existing businesses to carry out certain specific tasks for government programs, or to get special research of the ground. In any case, the amount of time required to land a grant of this type is extensive and ensures that even with grants, nothing is free. See SBIR info for more detail. Small Business Innovation Research Grants (SBIR) The SBIR program is a highly competitive federal program that provides research and development contracts based on the market potential of the research. It is the largest source of early-stage research and development funding for small high-tech companies. Funding for the SBIR program is divided into three phases: In phase I, companies can receive up to $100,000 for a six-month feasibility study to test the scientific and technical aspects of their concept. If phase I is successful, companies move on and may be awarded a phase II contract for as much as $750,000 to take up to two years to further develop the idea.
