Being a single mother does not preclude you form starting your own small business. If you want to have your own business, which is a very admirable goal to have, then you simply need to spend a bit of time looking into the various small business grants for single mothers that are available.
There are more options out there than you may think. Getting a grant is better than getting a small business loan as you will never have to pay the money back, which makes it a very viable option. However you must remember that in order to apply for the grant you will have to write a grant proposal. Among other things this proposal will have to include a comprehensive business plan that you intend to implement in regards to your business. So basically you already have to have the business plan in mind before you apply for any grants at all. To find out more about small business grants for single mothers read through this article and see if this is the answer for you.
Different grants have different eligibility requirements, so on top of ensuring that you have written a good grant proposal you will also have to make sure that you meet the necessary requirements to qualify for the grant.
Is there any such thing as small business grants for single mothers?
In short the answer is effectively no. You will not be able to find any actual grants for single mothers for the purpose of starting a small business. There are however a number of loans that only single mothers are eligible to apply for. There are also a number of grants that single mothers are eligible for that are not directly given out in order to help a single mother start a small business. It is very important that you keep these facts in mind when looking for financial aid for your small businesses as a single mother.
What is the difference between a grant and a loan?
What may be the cause of confusion regarding small business grants for single mothers is the difference between a loan and a grant. There are some very crucial differences between these two things, and it is important that you understand these differences, especially as you may be required to get a loan as grants for this exact purpose do not seem to exist.
A grant is an amount of money that is given to someone who meets certain criteria in order to help them fund something. They will not be obligated to ever repay that money and they will be in a position of complete freedom. However grants are not just given out to anybody. Generally speaking they are only given to people who can demonstrate that they have a genuine financial need. This means that you may not qualify for a grant. However, like it was stated earlier, there are not actual grants that are related to helping single mother start small businesses.
Loans are also monetary amounts that are given to you to help you pay for something. However, unlike grants, loans do indeed have to be repaid. Not only do they have to be repaid, but they also come with high interest rates. This means that you will be repaying more money than you originally borrowed in the first place. Federal loans are the best ones to get if you can but they are not easy to qualify for. However as they have the lowest interest rates, it is important that you try to get a federal loan as this will be more financially viable. Loans from private sources are easier to qualify for but also come with very high interest rates that may cause you to suffer later on.
Like with small business grants for single mothers and small business loans for single mothers that come from the government, they tend to take a while. This means that you have to be patient, above all things, otherwise you may do something that you regret and become frustrated. If you are hoping to get a governmental loan for your small business then you will have to find someone who knows about loans to help you. This kind of adviser can make sure that you are getting the best loan for you personally and can keep you from falling into any traps. Try and find someone you trust to help you make a decision about the government loans that you are interested in applying for. Searching for information about loans on the internet is a good idea, but it won’t be completely fool proof. Every person who looks for a loan is in a different situation and requires the loan for a subtly different reason. You will need a loan adviser who will be able to ensure that you are choosing the best loan possible for you. The internet is after all the source of false and misleading information regarding the existence of small business grants for single mothers.
The Small Business Administration
The Small Business Administration is an organization that aims to specifically provide small business loans to single parents. That means that you, as a single mother, will be eligible for one of these loans in order to get your small business off the ground. Many people do not even know that these loans exist so it is important to make sure that you have someone who knows what they are talking about help you find the best loans for you personally.
Generally speaking private intuitions are not willing to provide loans to single mothers. This is because they consider single mothers to be a risk. In their minds single mothers fall into the demographics of people who are unable to pay interest rates and who are in financially unstable positions. This may make your chances of getting a loan from a private organization a little lower than most people’s, but you still stand a chance if you can prove financial stability.
The Microloan Program
The Microloan Program is a program that assists disadvantaged and minority group members in getting their businesses started. As a single mother you are listed as a minority group member. Minority here does not mean numerical minority, but rather political minority. The Microloan Program provides:
- Short term assistance to small business owners who are in the minority (such as single mothers)
- Small amounts of money to help businesses get on their feet (or back on their feet as the case may be)
- Funding to certain types of non-profit childcare centers (in which case you may be in a position to get a loan for your small business if it is one that involves childcare and that is non-profit)
7(a) Loan Program
The 7(a) Loan Program is another loan option when it comes to finding the funds necessary to start your small business.
If you do not qualify for any of the above-mentioned options then remember that you will still be able to get loans and financial aid through non traditional methods, such as through peer-to-peer lending. There are several organizations where you can engage in peer-to-peer lending. Some of them are:
- Lending Club
Tips for starting a small business
If you are going to start a small business there are a few basic tips that you should keep in mind.
- Be very careful about going into business with friends. It is very difficult to have a proper business relationship with a friend. You may feel inclined to let them get away without making payments or to allow them to walk all over you simply because they are your friend. And there are many people out there who are more than happy to take advantage of a friend in order to get something for cheaper. If you’re going to go into business with friends make sure that you set clear guidelines in order to make sure that you are not going to lose out in the deal.
- Make sure that you know what you are getting yourself into when you decide to start a small business. This means researching all of the potential pitfalls regarding small businesses in general as well as researching the specific line of work you are interested in becoming involved in. Make sure that you know all of the details and facts before beginning.
- When you start as small business you must remember to start out slowly. You will have plenty of time to grow your business later once you have an idea of what you are doing but at the beginning it is important not to get too ahead of yourself. There are so many things that can go wrong if you do.
- When marketing your business be sure to think outside of the box if you want it to be noticed. Don’t be afraid to do a bit of guerrilla marketing.