Where Can I Find Free Money for a Business Start Up?

by Russell Huebsch, Demand Media
Most businesses do not qualify for government grants.

Most businesses do not qualify for government grants.

money, money, money image by easaab from Fotolia.com

If you look hard enough, and sometimes get lucky, you might find free money to help start your business — a grant. You should not, however, bank on getting one, because grants are extremely hard to find. Despite what some people say, the federal government does not give tons of free money to businesses. Thus, you probably have to look to alternative sources for a grant.


Never pay money to someone claiming the means to get you free money from the government to start a business, especially on a late-night infomercial. People who claim they can get you a federal grant are simply lying or referring to government-backed Small Business Administration loans which are widely known and cost nothing when you apply.

Government Grants

Most government grants appear on the Grants.gov website. Many states, local governments and Indian territories list their grants there. Note that most government grants come with some restrictions. For example, some are only available to businesses in a certain location or for a niche industry that does not exist in a community.


Grants from the government and nonprofit foundations, such as the Bank of America Foundation, are not entirely free, nor are they intended for business start-ups. Usually, the grant comes with the stipulation that the entrepreneur must fund 75 percent of his company from outside sources. Also, grants are typically project-based and related to the granting institution, so this free money will likely go to an existing company.

Major Companies

Major businesses usually have a program that gives money back to entrepreneurs in their community, according to National Institute of Small Business Grants. Your best bet is to look at the largest corporations closest to where you live. Branch out into large, nationwide companies because they often do not put as much emphasis on geographic location as local companies.


Minorities and women have sources of free money unavailable to anyone else. This is to make up for the perceived historical prejudice against these groups from entering the business world. Consider national programs like the Minority Business Development Agency and local programs like FAME Renaissance (see Resources).

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