Expert: Rich Mihalic - 10/12/2006

Question
Rich,
I'm in the process of starting a geotechnical/environmental well drilling business and I'm interested in knowing if I can qualify for a grant for start-up capital and the purchasing of equipment. I need somewhere in the vicinity of $350,000. All this grant crap I see on websites seems like gimmics. I'm very practical, If it sounds too good to be true, it probobly is. So is it? If its real what foundations do I contact for that type of grant? Thank you.....Kalem

Answer
Hi, Kalem, thanks for the question.  You are correct, the majority of those grants and "free" money advertised on the Internet are nothing but gimmicks.  Depending on how many jobs your business may create, you might qualify for a small business loan for machinery and equipment.  You should contact the nearest economic development organization to you and see what loan programs they might have.  Most of these small business loans are at 60% of prime.  Another source to contact is your local state legislative office.  Every state generally has a small business office which can tell you what might be available in the form of assistance and/or loans.  Foundations are very difficult to obtain money from for business start-ups. They are usually interested in such things as parks, monuments, restoration projects, wildlife refuges, etc.
Good Luck!

RM