Free Government Grants Advertising Misleading

Small businesses are the foundation of the American economy, and the spirit of independence and entrepreneurship is alive in millions of Americans today. Having a good idea is not enough, however. One of the most essential needs of every man or women wishing to start a new business is money. Whether you need funds to start a business, invest in a new opportunity, or meet personal expense, do not look to the government for help!

Countless late night commercials on television tout the ease of obtaining free government money, misleading entrepreneurs about this important source of funds. True, the federal, state and even local governments give out billions of dollars every year in “free government grants.” Yet this money is earmarked for specific agencies and projects that usually preclude any type of personal or small business use. The reality is that qualifying for a government grant is difficult – even for organizations the money is meant for. Nearly all government grants are designed to help non-profit organizations pay for specific programs benefiting the greater community. Without non-profit status through from the Internal Revenue Service, odds are that you are not eligible for those grants.

So Who’s Getting All That Government Money?

Getting any type of grant – but especially one offered by the government – takes an understanding of what the granting agency is looking to fund. The key to obtaining grant funds lies in being able to make your project request match a specific set of criteria; being able to prove your project’s worthiness; as well as having the unique ability to make the funder see the potential in your idea enough to be willing to help pay for it. Government grants are most commonly offered to these types of organizations:

schools
libraries
emergency services agencies
hospitals
community agencies
service groups
churches

Unfortunately, obtaining government funds is virtually impossible if you are a small business or a personal entity. For small businesses looking to expand, some special circumstances do exist, whereby small grants may be available. If you are willing to adhere to strict criteria – usually in regards to hiring certain types of employees – you may be eligible for government assistance. For instance, if you are willing to hire five former inmates in your factory, you may be able to obtain grant monies to help pay their salaries for the first year. The downside is that you may be required to keep these employees on staff for 3-5 years in order to get that grant in the first place.

For individuals, however, the doors of the government are usually tightly closed. Grants are instead given to nonprofit entities that help the needy. So if you are looking for help as an individual, it may be better to contact a local nonprofit organization or United Way to find out if there are any programs or services that you may be eligible for.

Buyer Beware!

Apart from infomercials, small business owners and other individuals are fall victim to unscrupulous grant writing services which promise to find government grants to meet business or personal expenses. We advise you to be extremely cautious about such promises. First, no grant writer – no matter how experienced – can guarantee success. The people doling out grant monies must review each application solely on its ability to meet their criteria. No matter how great your proposal, if it doesn’t meet the grantors requirements, it will not get funded. Thousands of very worthwhile projects go unfunded every year, despite desperate community need. In such a scenario, it becomes impossible for a grantor to give a business owner or individual money to expand a business, write a novel or pay bills.

Your Options

Unlike non-profit groups, whose main reason for existence is to offer services to the community that isn’t available elsewhere, for-profit entities exist to make money. Grantors don’t want businesses to make a profit from their generosity. They want to invest in the community; not individual business owners. That said, some communities do offer small grants to help bolster economic growth and may offer grants to businesses willing to relocate to specific areas or neighborhoods. These grants are usually fairly small in size, however, and may not be worth the cost of moving in order to qualify.

Further, minority business owners may also be eligible for grants. However, this does not mean there are loads of grant opportunities available for minority owners, as many research firms may suggest. Yes, there are some opportunities for women and other minority small business owners out there, but the few available are often limited in both size and scope. For those interested in looking into their own grant acquisition availability, the Small Business Administration (www.sbaonline.sba.gov) should be the first place to check, rather than a grant writer or research firm. Additional resources include the following:

The Federal Reserve Online (www.gpoacess.gov/fr/advanced.html) is a free grant seeking service offered by the United States government. It lists every federal government grant currently available, and allows users to download all forms and applications they may need to apply.

The Foundation Center (www.foundationcenter.org) offers the nation’s most comprehensive listings of grants available as well as educations tools for grant seekers.

Additionally, almost every federal agency offers its own grant opportunities. Sometimes, getting the information you need is as simple as logging onto the individual agency website. Here are just a few that offer some granting opportunities to organizations and small businesses:

The U.S. Department of Education (DOED)
www.ed.gov

Federal Emergency Management Administration (FEMA)
www.fema.gov

Institute of Museum and Library Services (IMLS)
www.imls.gov

Legal Services Corporation (LSC)
www.lsc.gov

The U.S. Dept of Commerce (DOC)
www.doc.gov

The U.S. Food & Drug Administration (FDA)
www.fda.gov

The U.S. Armed Forces
www.defenselink.mil

The U.S. Department of Agriculture (and Rural Development) (USDA)
www.usda.gov

The Bureau of Education and Cultural Affairs
www.exhanges.state.gov

U.S. Department of State
www.state.gov

National Institutes of Health (NIH)
www.nih.gov

AmeriCorps
www.americorps.org

National Science Foundation (NSF)
www.nsf.gov

U.S. Geological Survey (USGS)
www.usgs.gov

U.S. Customs Service
www.cbp.gov

National Park Service (NPS)
www.nps.gov

Labor Department (DOL)
www.dol.gov

National Aeronautics and Space Administration (NASA)
www.nasa.gov

National Endowment for the Arts (NEA)
www.arts.gov

National Endowment for Humanities (NEH)
www.neh.fed.us

Bureau of Alcohol, Tobacco and Firearms (ATF)
www.atf.gov

US Coast Guard
www.uscg.gov

US Fish and Wildlife Service
www.fws.gov

U.S. Department of Energy (DOE)
www.doe.gov

Although it does seem as if the government is handing out a lot of free money these days – and it is – the problem is that very little of it is going to small business owners or individuals. Unless you are a large scale business entity or a non-profit organization with a great program that needs funding, the odds are that you will not be able to avail of government grant opportunities. While it is understandable that you would like to look into possible grant opportunities for yourself and your business, it is important to know the limitations of this so-called “free money” and to realize that there is not as much of it out there as many would have you believe. If you are searching for free grant money, begin your search on your own. Do not pay someone who promises to get you the funds you need – no one can promise that and the odds are that ultimately you will pay through the nose.