The Truth About Small Business Grants

Never believe the hype that money is being given away for free by the US government. It could not be further from the truth. Believe in the old saying "nothing is ever for free". There are many websites and books online that would love to have you believe that. Getting a government grant is a long and tedious process. Once you do receive a grant, you constantly have to answer and report back to the federal government.

A government grant is not a "freebie". The government defines a grant as "A kind of gift that requires a certain obligation in the grantee's part at the same time some kind of expectation in the grantor's part." You are providing a service to the government and they are going to help you get started.

Although the money will not have to be paid back, it is still work, not a free ride. For example, on a micro scale. If a person wanted you to cut their grass and provided a lawn mower for you to do it, but in turn you charged them, this would be what the governments intent is.

You are not being given a lawnmower for you to do as you please, you have certain obligations and things you need to do to keep the lawn mower. It could lead you into a lot of hot water if you could not fullfill your obligations under a grant. Grants are usually awarded to organizations that are planning something that will benefit a community or state. Individuals are not usually awarded federal grants.

Grants are given to businesses that are willing to relocate to a depressed area, such as a downtown. They are given to businesses to train workers who otherwise could not find jobs. You will find many worker type grants if you are a small business. Simply go to the site grants.gov to find out more information. It is an invaluable resource. There are grants to conserve water or to start a neighborhood watch in your community. If you can think of it, it probably exist. The key is, if you are eligible or not. If you are approved, you will constantly need to meet very strict standards throughout the life of the project.

If you are lucky enough to get a grant, whether it be through your business or yourself (though unlikely) do not think that the money can be used for just anything. The government has very strict rules on what the money can be used for and what it can not. They do annual audits of where the money is going. This makes sure that all funds are being spent in the manner in which it was intended. Any money that is not spent goes directly back to the government.

Also, any changes to the proposal must first be approved by the government before they are made. Any detail you could imagine will be monitored by the government. There is a price to pay to get involved with the government. Grants are designed to aid the giver, not the receiver.