Foundations typically fund nonprofit organizations that qualify for public charity status under section 501(c)(3) of the Internal Revenue Code. These are organizations whose purposes are charitable, educational, scientific, religious, literary, or cultural. By and large, foundations do not make grants to for-profit enterprises. If you are trying to start a for-profit business, as opposed to a not-for-profit entity, we recommend that you visit the business section of your local public library. Your state's department of economic development may also offer some resources.
The Small Business Administration's Web site is useful in locating information on starting a small business. You can easily navigate the site by using its search engine or by clicking on a topic such as Starting Your Business. Here you will find a startup kit, financial assistance programs, publications, an outline for a business plan, and additional resources. The agency also provides funding for Women's Business Development Centers. See the Online Women's Business Center for information specific to women's business development. Business.gov is another federal initiative, providing a free, interactive Search For Loans, Grants and Financing. By filling out the online form you can find available financing for your small business for which you may be eligible.
Inc. Magazine offers a sweeping overview of finance options for entrepreneurs including angel investors, venture capital, government programs, bank loans, private equity financing, microloans, and direct strategic partnerships.
Practical advice about financing sources for new businesses is also available at OPEN: The Small Business Network, sponsored by the American Express Company. The Kauffman Foundation's EntreWorld provides resources covering many topics of interest to entrepreneurs, including starting and growing a business, and supporting entrepreneurship. You may also want to contact the Association for Enterprise Opportunity, a national trade association for microenterprise. This group may be able to direct you to a local microenterprise development agency.
My Own Business: A Free Internet Course on Starting a Business is a 12-session course that is intended for both start-up and already operating businesses. The site is fully interactive with audio sound bytes, quizzes, feedback, and a tool to create your own business plan.
The ABC's of Small Business site has a listing of state business assistance Web sites.
The Small Business Innovation Research (SBIR) Awards has a database that lets you search for awards given by various government agencies to promote small businesses scientific and technological growth and development. To search for previous awards visit here.
You can also try the National Technology Transfer Center (NTTC) which offers business assistance and Small Business Innovative Research (SBIR) and Small Business Technology Transfer (SBTT) solicitations. Their goal is to transfer government research into commercial businesses.
If your community is a HUD Empowerment Zone, an Enterprise Community, an Urban Renewal Community, or a Rural Community, tax benefits may be available for businesses that expand, start, or relocate there. This information is on the HUD Web site.
A relatively small number of foundations award program-related investments (PRIs), which most commonly are loans to for-profit or nonprofit entities for purposes closely related to a particular foundation's funding interests. For more information, see the FAQ entitled "What is a program-related investment?"
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