Our Clients Ask Us: Grants

Q:

I recently received a mailing stating that my company is eligible to receive a business grant from the government for $15,000. The mailing states that I have to contribute $2,000.00 in order for them to facilitate the grant paperwork. Is this a viable option for my company?

Answer: Probably not. The FTC has issued warnings against companies that promise you business grants. It is difficult to find grants to start a business or to develop new products. The federal government and private foundations rarely give grant money to a for-profit business. There are certain exceptions, which you may find at www.grants.gov.

This is a federal government site created to provide transparency and information on grants. Most of the federal grants are given to specific target groups with specific requirements (for example, small businesses that find viable ways to use low-value trees and other woody biomass to produce marketable products or energy products). There are other grants given to non-profit groups or organizations.

The Small Business Administration is also an option for funding your business, however, it provides low-interest loans, not grants. For information on SBA Loans, please visit www.sba.gov.

With regard to the company that wants to collect an upfront fee to “facilitate” your grant paperwork, keep in mind that true federal grants do not require you to pay any money.

The old adage, “If it sounds too good to be true, it is” appears to be applicable in this case. You would likely never see the $2,000.00 again.

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