Learn The Difference Between Government Funded Grants And Government Loans
Do you know that every year the government receives billions of dollars from taxes which are given by small scale businesses? Obviously the government is keen in helping these businesses run as smoothly as possible since they help the economy so much. The government is also interested in establishing more of businesses of these kinds.
If you are looking for a grant specifically, then you should know that they are available at the moment. You can find out whether you qualify or not, although the criteria is very lenient. You might not be able to find a standard grant available for business purpose only as there are a number of business grants with little variations. Millions of dollars are given away every year and owners of small businesses are welcomed to apply.
If you go over the internet, you will find countless grants available and it might seem like an overwhelming task to choose one grant which suites your exact requirements but you have to go through this trouble if you really want a grant.
Once you find a grant which suites your business requirements, the next step is to fill out an application and send. The government is not concerned with factors like your income level and such. This implies that even if you have a bad credit history, it does not matter. This is not the case with the loans.
The loans work in a different; more familiar way. The government lends money to business owners indirectly through commercial financial institutions. These loans are known as SBA loans.
These loans are supposed to help the business owners expand or start a new business with a very low interest rate and the repayment time period is also flexible. However, in order to get these, you are required to undergo a huge amount of paperwork. Moreover, your income level and credit history also play an important part.
Once the government makes sure that you will be able to pay the money back, you are provided with the loan. While receiving the money, you are required to submit a repayment plan stretched over a time period which could be months or perhaps years.
The restrictions on the bank loans are very less as compared to those of government funded grants.