It’s great to see small business owners come up with a new value proposition, a new idea or invention as in your case. I am going to recommend that you get a competent attorney and make sure your patent on the product is air-tight.
Given my experience in financing and consulting with businesses large and small, I have to admit that so far the lending environment is very bleak, but there is hope. The new TALF program announced by the government has a very significant SBA lending component attached to it and I am going to recommend that you touch base with local lenders to find out what their SBA programs will look like in the near future.
Also, in terms of grants I have a completely free foundation grant directory that you can access at our website that I think may be of tremendous benefit to you: http://www.smallbusinessplanresources.com/financing/foundation/foundationgrant-mainpage.php
You should also be able to find tons of valuable information on financing, lists of banks, how to get ready for business loans and everything you need to know about personal and business credit.