Q: I am interested in trying to own my own business but don’t want to use loans. What types of grants are out there and how do I get my hands on them?
A: We asked small business expert Melinda Emerson, author of Become Your Own Boss in 12 Months to answer this question:
“It’s a good thing you don’t want to use loans to get your business started because banks do not lend money typically to start-up businesses. You need to be in business for two to three years to qualify for even a line of credit. Unless you win a business plan contest or inventors competition for the most part there’s no such thing as finding a grant to start a business.
The money to start your business will come from your right or left pocket. In fact, there’s three pools of money you should have before your start a business
a) an emergency savings account
b) enough budget to go from 12-24 months without a paycheck
c) the first year of operating capital to run your business..
Now there are some franchises that provide funding, but 20-30% of the loan must come from your resources.”
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All information on this blog is for educational purposes only. Lynnette Khalfani-Cox, The Money Coach, is not a certified financial planner, registered investment adviser, or attorney. If you need specialty financial, investment or legal advice, please consult the appropriate professional. Advertising Disclosure: This site may accept advertising, affiliate payments or other forms of compensation from companies mentioned in articles. This compensation may impact how and where products and companies appear on this site. AskTheMoneyCoach™ and Lynnette Khalfani-Cox, The Money Coach® are trademarks of TheMoneyCoach.net, LLC.