State and Local Government Help

State and local government assistance varies from location to location. Most states and local governments will have some type of an economic development program. These programs will range from providing economic information to giving low interest loans and forgivable grants.

To find out what is available in your state, contact your state department of economic development for eligibility requirements. The city and county governments are also a source of assistance. To find out what is available in your area, look in the local government section in the telephone book. The usual name given for city, county, and state departments is "Economic Development" and is listed as such in the phone book and on the Internet.

Work Smart The loan department at your bank may also be a valuable resource in identifying state, local, and agency assistance to the new business person. They may have gone through the steps with other new businesses in your area. Another suggestion is to call the regional or federal HUD office. HUD (the federal Department of Housing and Urban Development) provides job and other grants to startups and small businesses for job creation (e.g., $10,000 per job created) in the form of low interest loans, often in conjunction with the Small Business Administration. HUD will be able to provide the names and phone numbers of local city, county, and state organizations in your area who represent HUD for development of targeted geographic urban areas.

Another potential resource of assistance may come from local nonprofit economic development agencies. If your community has an economic development agency, this agency may be your best source of providing information on a complete package for the new business. These agencies may assist you in all your research, along with providing financial assistance.

The local economic development offices at the city and county levels will also be a good source of identifying specific area banks that are most experienced with SBA loans or are willing to work with small businesses and startups.