While MSDC does NOT offer loans or grants to businesses, we DO offer information and education on how to obtain financial capital, and can put you in contact with those resources. Because this information fluctuates, we ask that you please contact our office at 660-886-6889 for an up-to-date consultation.
Unfortunately, many of the statements regarding grants are simply untrue. Truthfully, it is unlikely that a grant will be given for a for-profit business at all. Grants are normally awarded to non-profit organizations and often come with many strings attached, such as requirements for matched funds, reporting and evaluation techniques, and indicators of success. They are meant to meet the needs of the funders--not the recipients--and application processes are usually difficult and time consuming. In truth, looking for a grant to start your business may be more trouble than it's worth. For more information on the limitations of grants, please see Tish Johnson's Article "The Truth About Grants" provided by the University of Missouri Extension.
So if I can't get a grant, what can I do?
Going into business means taking on risk, and using money to prepare for a business venture means you are risking money that you probably have to pay back. The most popular ways to find capital to start a business are through compiling resources through family and friends and obtaining loans. While these may not be the ideal "free money" methods that grants seem to be (which they really aren't), there are essential steps to take and dangerous pitfalls to avoid when looking for capital, and we can help you get prepared to make informed decisions and a great pitch. The first step to getting a loan is writing a great business plan.
Avoid Predatory Lending that can ruin your credit!! Rent-to-Own, Payday Loans, Pawnshop Loans, Subprime Mortgages, Car Title Loans, and Refund Anticipation Loans (RAL's) are just a few examples of extremely dangerous ways to obtain money, and are often most enticing when we are desperate. While these aren't illegal practices, they can be infested with hidden charges and fees, the interest rates can cost you up to 20 times the initial loan (take out $400 and pay back $8,000), and they can become virtually impossible to pay back. Know what you're getting into! Predatory Lending techniques are not good ways to obtain money, and they will not be worth the money, time, or risk that you assume. For more on how these dangerous credit methods work, please see the article "When Creditors Are Predators" provided by the University of Missouri Extension.
Through our partnership with the Small Business and Technology Development Center (SBTDC) at the University of Central Missouri, we can provide support in developing and evaluating business plans at no cost. The SBTDC also offers a variety of other services, including intellectual property rights, product development, and market analyses. If you are interested in developing a business plan and preliminary market analysis, please contact Josh King for a copy of development materials by emailing josh@marshall-saline-dev.com or calling 660-886-6889.
In an effort to stimulate the economic prosperity of the country, the Federal Government passed the American Recovery and Reinvestment Act, commonly known as 'the stimulus bill.' While there is potential for new developments and projects to capitalize on this stimulus, there are still many unanswered questions and restrictions relating to stimulus funds, and there are many scams emerging that look to take advantage of the confusion. While MSDC will work to pursue whatever resources are available for the community, we strongly urge anyone pursuing stimulus money to be extremely cautious (and down right suspicious) of offers regarding the stimulus package. If you think you have found a resource relating to the stimulus that may be of assistance to you but you need clarification, please call our office at 660-886-6889 and we will be happy to assist you.