What's the difference between a small business loan and a grant?

A small business loan is money you borrow from a lender that you have to pay back with interest or other fees. On the other hand, a small business grant is funding you don't have to pay back that's typically offered by the government, foundations or corporations.

Does my startup qualify for any small business grants?

Some organizations offer small business grants for startups . You'll need to review the grant's criteria to determine if your startup qualifies.

Can I use a grant to start a new business?

Typically, no. Most grants go to businesses with a track record of operation, so you might want to look at other options like crowdfunding or personal loans if you need funding to start a business.

Do I have to pay taxes on my small business grant?

Yes, grants are generally treated as taxable income. There are some exceptions, however. For example, government grants have to be declared as income if the money is used as an income supplement. But if, for example, it's used to buy property or hire student workers, then you may be able to deduct it as a business expense instead. Different rules apply depending on the exact purpose and use of government money. If you receive a grant, whether private or from the government, consult a tax professional to learn if you'll need to pay tax on the funding you receive.