Grants For Profit - Are Grants Feasible Sources of Cash in Advance?

I've been in business for a few years now. So newer business owners often ask me about how to get grants. These businesses are anxious to find free grants money and to find someone to help them create a proposal for it. I usually tell them that grants are generally for non-profits. And writing a proposal for a grant is quite a different animal from responding to an RFP, which is where our expertise lies.
But since I'm always in learning mode, I just realized that there are grants specifically for the for profit company. Of course there is a catch. The company must be able to provide innovative R&D type solutions. One such program is the federal Small Business Innovation Research (SBIR) program. SBIR provides funding and services to innovative technology companies.
There are 11 government agencies which participate by allocating a portion of their budgets to companies in the SBIR program. Businesses receive this funding if they have the potential to meet a need for one of the eleven agencies. But you don't get the money all at once. There is no loss of control or equity as there is when the business is funded by venture capitalists. But what venture capital and grants have in common is that funding is provided in stages.
Phase I: Companies get grant awards in phase. Initially they get a 6 month award for the feasibility analysis process. Your business must demonstrate that its product and service a) can solve a problem and b) has commercial value and viability.
Phase II: In this phase, your company gets additional funds to actually develop and implement your solution. Your company must now deliver your agency specific solution in a two year time frame.
Phase III: If you make it to this stage, you're on easy street. This is where and when you get the firm contracts. Your business may be recipient of sole source contract awards from the government.
Grants are great because they are free money. Most for profit businesses do not meet the grant qualification criteria. But for those who qualify, grants do require "sweat equity". You have to qualify for the initial grant. And your business must perform successfully before your company can qualify for additional awards.
Is your business suffering from sluggish cash flow? I'd like to invite you to claim access to your *FREE* Report, "Factoring: Why Factoring May Be Your Best Financing Options" by visiting http://www.GetCashFromReceivables.com.
Turn your accounts receivable into immediate CASH! Call 404-374-3384. Although we do not provide loans, we do provide cash flow solutions to businesses that may not qualify for traditional business loans from a bank. Noble Finances offers factoring / accounts receivable financing, equipment leasing, software leasing, cash advances on future credit card sales and pre-settlement lawsuit and law firm funding.
Noble Finances: Accelerating CA$H Flow!
Article Source: http://EzineArticles.com/?expert=Sandra_Noble