Every city and state gets Federal funding for small businesses.  How much each state gets has to do with population, and how strong your representatives are in Washington.   Recently, thanks to the cost of the war, many of these “grants” have been quietly and substantially reduced, because funds have had to be re-directed to other areas.  Also, the increased spending due to national disasters like Katrina, for example, have forced the government to direct more money for rehabilitation of cities, and to help with large numbers of displaced people.  What you can do, is go to your local bank, where you have an account, and ask if they know of any grants for small businesses.  If they are not helpful, you can go to your Mayors office or Chamber of Commerce and ask this question.  If you still do not get any help with funding, try writing to your State Representative from your district, and ask for help with obtaining some funds, or a low interest loan.   One of these sources will help you.  If you don’t have good credit, it might not be easy to get a loan.  However, if the business you are starting serves a public need, and you have a customer base, and are paying your bills on time, you have a reasonable chance of getting a small business loan.