Illinois Small Business Grants

In Illinois, small businesses need funding just like those in other states do. Sometimes funding is for entrepreneurs just starting up a new business while other times it is for expanding an existing business through acquisitions, capital improvements, and other such expenditures. Regardless of the name, today's tight economy can make it difficult to find the financing you need. One of the options Illinois business owners have is to apply for small business grants.

Finding small business grants in Illinois requires a fair amount of individual research. The two best places to start are the Small Business Administration and the Illinois Small Business Development Center. The Small Business Administration (SBA) is an agency of the federal government with the mission of helping America's small business owners develop their businesses and remain profitable well into the future. The Illinois Small Business Development Center is a state agency which is part of the Department of Commerce and Economic Opportunity. Their mission is very similar to that of the SBA except it is concentrated to the state of Illinois.

Both of these agencies provide contact information to various entities offering small business grants. Be advised that neither one offers grant money directly to businesses. Instead, they are informational clearinghouses who put small business owners in contact with other organizations who can provide assistance. That assistance can be in the form of financing, counseling, planning, advocacy, or education.

Where to Find Grants

In most cases small business grants come from entities outside the government. When government does get involved it's generally through the use of block grant funds that come from Washington on a limited basis. When Illinois receives such block grant funds they may turn around and offer grant programs directly, or they may funnel the money through other channels for the purpose of providing grants. There's really no way for us to give you specifics because the grant process has so many different variations.

When you visit the SBA or the Illinois Small Business Development Center you'll be able to obtain a list of grants currently available in your state. You might see one grant from a private foundation seeking to boost a particular industry. You may see another grant offered by a women's business advocacy group hoping to help female entrepreneurs. And still another grant may be offered by a trade organization as a means of promoting new businesses in that trade. The point is, small business grants in Illinois, like any other state, depend largely on who has the money and the goals they're trying to reach with it.

If you don't find what you're looking for through one of the previously mentioned agencies, you can also check with your local library and the Chamber of Commerce. These two organizations also act as a clearinghouse of information. In addition, your chamber of commerce may have leads to grants that public agencies don't have access to. If they do, they will have the contact information for each opportunity as well.

Applying for Small Business Grants

Applying for small business grants in Illinois is fairly simple. The exact process you follow really depends on whether or not you're starting a new business or expanding an existing one. In the case of the latter, all you really need do is write your grant proposal and submit it with any application documents that are necessary. If you're starting a new business, there is quite a bit more to it.

In addition to your grant proposal you will also need to submit your business plan, information regarding any other funding sources you are using, what you plan to use the grant money for if you're accepted, and other bits and pieces of information as requested by the grant maker. After your proposal package is submitted and reviewed, you may be asked to appear before a decision-making panel to present your ideas in person. Again, there's no definitive process we can outline here because grant proposals and grant writing are so different from one circumstance to the next.

Small Business Loans

Even if you're able to secure a grant please be aware that it won't be enough money to sustain your business if you're just starting out. You'll need to secure funding from other sources including banks, private investors, and so on. Small business loans are typically offered through banks and other traditional lenders, and backed by a guarantee from the SBA. These types of loans are the most popular funding source used by America's small businesses.

If you're seeking a grant to expand an existing business you may not need any more funding beyond the grant. That will be up to you to decide what your financial needs are at the time you write your grant proposal. If you need just slightly more cash than what's being offered in a particular grant, it never hurts to ask for more. Sometimes it's possible to convince the organization to kick in the extra. If not, the worst they can do is say no.

Regardless of your circumstances and funding sources, remember that running a successful business requires hard work and diligence. If you're turned down for your first couple of grants, keep looking until you find the funding sources that can adequately meet your needs.