The truth about small business grants

Starting a small business can be challenging, especially when funding is an issue. Although the economy has started to improve, lenders are still cautious when it comes to lending money. Obtaining funding for start-up businesses, which are defined as less than 24 months of operations, can be especially tricky.

One of the most common inquiries received through the Alaska Small Business Development Center (SBDC) references business grants. Clients are often disappointed to learn that many grant opportunities are directed to not-for-profit organizations.

Although it’s rare to find grants for for-profit organizations, there are always exceptions. In Alaska, several of the Alaska Native corporations offer start-up grants to their members. Also, many small business associations, such as the National Association of Self Employment (NASE), offer grants to their memberships.

The Alaska SBDC has a program that specializes in two types of grant opportunities for small business. They are the Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR) programs.

These programs fund early-stage research and development projects that serve the needs of specific federal agencies.

To learn more about the Technology Research and Development Center of Alaska program, please visit trendalaska.org.

Whether you’re receiving financing from a lender or through a grant, it is still a critical business decision. Therefore, business owners should tread cautiously when surfing the Internet for grant information. Entrepreneurs should be especially wary of any grant opportunities that require a financial commitment up front.

When making a business decision, work with organizations you know you can trust and always follow this tried and true advice: “If it sounds too good to be true, it probably is.”

Julie Nolen is director of the Alaska Small Business Development Center — Central Region (Mat-Su).