Grants & Loans
Grants & Loans
City Government Grants and Loans
Whether you want to start a business or buy a home, did you know that your city government can provide you with financial assistance? For example, if you wanted to install solar panels and lived in Berkeley, CA, the municipal government provides you with city loans to offset the installation cost. Or, if you are a local business in Emporia City, you can secure city loans to purchase equipment.
While you have to eventually repay city loans, city grants do not need to be repaid – as long as you can justify the funds you require will improve the lives of those you want to help. Some common uses for city government loans and grants are:
- Down payment on a home through a city mortgage loan
- Funds for renovations from a city home loan
- Start or expand a business through a small business loan
- Further your education through government grants
- Help your community with city council grants
How do I get the grant or loan application process started?
The grant and loan process can be complicated, and therefore, it is important to allocate time for both the research process and the application.
If you are looking for grants, start your search at the Official Government Grants website, operated by the US Department of Health and Human Services. You can conduct a specific grant search based upon keywords to find the appropriate program for you. Or, you can look for the ideal grant by category or even agency. By narrowing down your options, you can find the grant application tailored specifically to your needs and goals.
In addition, you can sign up for official government grant alerts, which sends you emails with information about the latest Federal Government grant opportunities.
How can I find local city grants?
While each city’s grant and loan programs vary, your municipality is sure to offer its residents assistance in government money. There are several ways to conduct research into finding city government grants in your area:
- Contact the City Council – There are many city council grants available, ranging from Economic Development Funds to support for Mobile Clinics. Check your local city council’s website for grant information, or consider visiting City Hall. You can also attend your local city council meetings to understand how their application and review process works.
- Research Local Foundations – Many foundations have grants available to individuals, programs, and companies that reside within a certain geographic region. You may be able to apply for government money through one of these non-profit organizations.
- Inquire with Your City’s Housing Department – Your city’s housing department is an excellent resource for city mortgage loans. Most counties operate a program that helps homebuyers secure mortgage credit certificates, which helps reduce monthly payments. Your local city or county housing department can also give you access to city home loans that help you renovate and improve your existing property.
Small Business Loan Programs
The Small Business Administration (SBA) is mandated by Congress to help small businesses with their respective financial needs. The SBA offers short and long-term loans to small businesses that may not qualify through normal loan application channels. While there is small business funding available for all candidates, the SBA also offers more focused government grants, such as women’s grants.
The SBA offers four types of business loans:
- 7(a) Business loan Guaranty Program – This is SBA’s primary small business loan. It is also the most flexible because it can guarantee the financing for a variety of general business practices. In guaranteeing such a loan, the SBA will repay the lender for the loan amount if it goes into default. Although the SBA reimburses the lender, the small business owner is still responsible for repayment of the loan.
- The SBA offers a pre-qualification program to military veterans, minorities, women, exporters, rural small businesses, and other businesses in specialized industries. The small business owner can be pre-qualified for a 7(a) loan before the business owner approaches a bank. This source of small business funding has helped many entrepreneurs realize their dreams.
- The 504 Certified Development Company Program – For major assets like land and buildings, the 504 Certified Development Company Program awards long-term, fixed rate small business loans. CDCs are set up as non-profit corporations to aid the development of local communities.
- 7(m) Microloan Program – The Microloan Program awards small business loans up to $35,000 for not-for-profit child care centers and small businesses. Locally based business lenders are the driving force behind the Microloan Program.
- Small Business Investment Companies (SBICs) – SBICs provide small business loans and financing for growth, modernization, and expansion of small businesses. The Small Business Administration licenses the SBICs to make long-term small business loans.
As with personal grants, business grants don’t have to be repaid; however, most small business grants are available to applicants with specific qualifications. Some of these are:
- Women owned businesses, minorities, veterans, or people with disabilities
- Economically targeted communities
- Specific projects and needed research
- Specific services, technical and training assistance
How do I apply for a SBA loan or grant?
There are various qualifications set forth for government money through the SBA. Begin with the application available from the SBA, and carefully note which small business funding opportunity you are seeking.