Traditionally speaking you do not have to pay taxes on loans and grants. When you receive a loan from a bank, the government, or an individual this is not classified as income therefore you do not need to pay taxes on this funding. However some government funding programs may stipulate that you do have to pay taxes on the funding you receive. The only way to know for sure is to read the agreement contract carefully.
How much funding does your small business need? Are you looking to fund your startup or existing business? Get started now with your funding search with our Funding Database. With hundreds of funding programs and $1,449,415,290 in available funding, you should not wait. Register as a member today!
You can also take advantage of the Small Business Startup Assessment Tool below and see the tools and resources you need to succeed at launching your business. It takes just a minute and will also tell you if there may be any funding programs available.