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How can I get a minority business grant?

Using a minority business grant is a great way to start a new business. As a minority you will qualify for several different types of government and private grants and setasides.Much of the qualifications depend on the specific grants, but you should understand the basics for most grants or setasides.

Many people have used fraud to gain money from government grant programs.Because of these scandals the qualifications have risen and become more stringent.The red tape has increased and the qualification process can now be very lengthy.You will have to fill out many forms and have to be very dedicated to the process to eventually qualify.It is often very difficult to qualify even if it appears that you easily meet all of the requirements.

First, you will need to be a minority to qualify or at least have majority ownership of the company.However, be careful that you do not structure a business just to qualify for a grant.If you give ownership to somebody because of their ethnic group you may have some serious issues once the partnership breaks down.However, the bottom line is that majority ownership must be held by a minority or minorities.

Many of these grants are actually funded by the private sector.The government has made certain regulations to encourage the growth of minority or woman business ownership.The regulations give preferential treatment for contracts to be awarded to disadvantaged businesses like those that are minority owned.

Some of these contracts are awarded to larger companies that are able to hire or subcontract the work to smaller disadvantaged companies.Thus, these larger companies find that it is in their best interest to encourage and support the growth of minority owned small businesses.Hence, when you are searching for grants do not limit your search to only government grants.The private sector has a lot of grants and setaside programs with funding that is available too.

In order to qualify for these grants you will normally have to show that the company is viable. This means that as a business you must show that you are making it and will continue to make a profit in the future.Therefore, your accounting and contracts will be part of the application process to show that you are in business and not just waiting for a government grant to get started.There have been many frauds in this industry so the inspection process can be quite vigorous.

Additionally, your company must show they will be a viable business in the future too.If your industry is changing or going away you may be disqualified.For instance, if you make ink jet printers, your business might not be viable in the future as the laser jet printer takes over the printing market.The intent of these programs are to support companies that are viable and will remain viable not make a quick buck and then go out of business.

Lastly, you must realize the process to apply can be very long and time consuming.Additionally, in some instances there are waiting periods regarding how long you must have been in business before you can obtain certification.Additionally, the program is designed to help your business not completely justify your businesses existence.As your business becomes more successful and grows you may find that you now longer qualify for assistance in grants or setasides.

In summary, business grants for minorities are designed to help businesses with minorities as the majority owners.These grants can be difficult to qualify for and the process can be lengthy.Each grant may have specific qualifications but most will require minority ownership and a viable business now and in the future.

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