Ohio Small Business Grants

Ohio is a state that is working hard to develop its economic resources in order to help small businesses to start, grow, and eventually expand. From government institutions to nonprofits and private organizations, all are doing their best to attract new businesses as well as helping those already in existence. One of the ways they are helping is by providing financial resources to fund business start up and expansion. Assistance can come through loans, small business grants, or private investment dollars.

As a general rule, grant money is not available to start a new business from scratch, either at the state or federal level. That's because government entities are prohibited by law from making direct investments that benefit individual business owners. There are some exceptions to this rule every once in a while, but they are few and far between. Most of the Ohio small business grants that business owners come by are realized through trade groups, business advocacy groups, and nonprofit organizations.

The Ohio Department of Development

The first place to start if you're an Ohio businessman is the website of the Ohio Department of Development. This state agency is responsible for overseeing business enterprises in the Buckeye state and is therefore a wealth of information about starting or expanding a business. On the website you'll find information about laws and regulations, tips for starting a business, and links for various support systems that can help business owners in their endeavors.

When there are grant programs available in Ohio the website will generally list them as well. If you have any questions regarding information you find on there the Ohio Department of Development provides an online contact form you can use to submit your questions. If you're an Ohio small business owner you would be wise to avail yourself of all the information put together by this agency.

Federal Block Grants for Business

Ohio isn't alone in asserting that federal grant money cannot be invested for the purpose of helping a small business owner start his business. All states are under the same restriction. However, the federal government does occasionally provide block grants to states for their use in economic development. Sometimes those block grants are divided into several different uses, including targeted grants for specific industries, geographies, or groups of people.

For example, Ohio may get a block grant which it then uses to help spur technology development in the greater Cleveland area. Under such a scenario any grant money provided would be administered through a nonprofit organization or qualified business group. One of those organizations would make grants based on proposals submitted. But regardless of who the grants were awarded to, the companies in question would need to be technology-based and located in the greater Cleveland area.

The most important thing you need to know about Federal block grants is that they don't come around very often. If you're waiting for such money to start or expand your business you may be waiting an awful long time. You're better off searching for grant money from nonprofits and business groups, or seeking other sources of funding including private equity and loans.

Ohio One Fund

One innovative new program designed to foster entrepreneurial enterprise among young people in the state is called the Ohio One Fund. This is a program which brings together young entrepreneurs with great business ideas in the greater Columbus area. You don't need to live there full-time to apply, but you must be willing to remain in the Columbus area throughout the 11-week program. The program supplies each team of successful applicants $20,000 of investment capital for business and living expenses, as a means of helping them explore, and possibly launch, their ideas.

During the 11-week program participants are put into an intense incubator environment with the best business professionals who can teach them, mentor them, and hopefully get them launched on a successful business venture. Those who succeed in creating a successful business stand a much greater chance of receiving further investment dollars from private equity investors. Those whose business ideas fail will not need to repay the money given them, but they will find it more difficult to fund their ideas in the future.

Non-Grant Sources of Funding

There are a number of other sources of funding in Ohio that are not grant related. The most common is the Small Business Administration loan. This loan is backed by the federal SBA and is designed to help new businesses get off the ground and existing business expand. Because it's federally backed it provides a very reasonable interest rate and fewer restrictions than a conventional business loan. To qualify for such a loan you must meet certain criteria and develop your business within certain parameters.

Two other options include standard business loans and from your local bank and private equity dollars. Where the latter is concerned, don't fall into the trap of believing that private equity investment can only come from wealthy firms with billions of dollars in assets. You're going to need every bit of funding you can raise so don't limit your sources. If you have family members who are willing to contribute a couple of thousand dollars apiece, accept those contributions in exchange for a proportional share of your company. When you do finally turn a profit all of those individuals who donated small amounts will reap the benefits right along with you.

Securing Your Funding

Whether your funding is coming from grants, loans, or private equity, you'll have to write a proposal to present to the various institutions. Your proposal should be as thorough as possible in explaining the following things:

• the type of business you plan to engage in
• your company's mission statement and vision
• your short, mid, and long-term goals
• specific plans to reach each of your goals
• who your target customer base is and how you intend to reach them

In order for your proposal to be successful you must address all of these areas to their fullest extent. Be concise and factual to the extent that the reader will fully understand what he is reading. By the same token, avoid long-winded dissertations that make little sense and do nothing more than fill up paper. At the end of the day the most thorough and concise proposals will be the ones most likely to get the first shot at limited funding.

If you are an entrepreneur in the state of Ohio rest assured that you do have financial resources available to you. The sooner you get busy seeking out those resources the sooner you'll get your new business or your expansion off the ground.