The Basics of Government Grants

The United States Government literaly has billions of dollars to give away. Further, much of the money goes unclaimed each and every year. This money comes in the form of Grants. Grants are different from loans in that they do not have to be paid back. The grants are used by many people who are looking to get assistance with their businesses, real estate, careers, research and personal life. There is money for a down payment on a house, pay your closing costs, renovate and fix up your property, pay your rent or mortgage, just to name a few. Even people who have declared bankruptcy can get government grants. As long as the person is over eighteen, pays taxes and is an American citizen that person can get government grants. Grants are usually for a very specific purpose. Further, the Federal Government is not the only source of grant money. There is grant money available from State governments, County, and Municiple governments. Currently there are over 1,400 Federal grant programs, and over 17,000 State programs. The problem is that the government does not advertise these programs. It is up to each individual to research the specific one they want and find out how to apply. While the money may be free, it is up to you to find it. Here's a more in depth look at government grants.

Most of the time a person who receives government grants for business will need to meet all of the obligations that the government poses to the person. One of the requirements may be that they must submit progress reports on the grant money and its use so that the government knows that the grant is being used properly and that it went to the right person. Also, the amount of money received in government grants should be meeting the criteria that the government has established.

There are two main types of government grants for business. First, there are operating support grants that work to help operate and pay off general expenses with running a business. This is given when the government supports the goal of the organization. Second, there are program support government grants that are used to support both the procedures and processes that the business follows.

Here's a look at some of the more specific types of government grants. First, there are planning grants that involving funding research and starting up new plans that the business will have.

Start-up grants are also popular government grants. These grants work to assist a business that is just opening up. A grant is generally given for a little over a year and will decrease in value every year after that because the government expects the business to grow over that time. The government will ask for progress on the start-up work, of course.

Equipment and facility grants are also used as government grants. These grants help to financing the physical space and materials needed for the business. The applicant for these government grants will need to explain how the materials will be necessary for the business. Progress reports will need to be sent over time.

Endowment grants are government grants for non-profit businesses. These grants help to raise funds for the work and services that the non-profit group provides. The interest of the endowment's principal sum should stay the same so there will not be a need for the endowment grant to meet operating costs the business will have to handle.

Program related investments are the last of the government grants that are offered. These are loans at low interest given to non-profit groups that can be useful but will need to be paid back over time.

There are some government grants for individuals too. Scholarship grants are used to pay for a student's college education without the student having to pay anything back, for instance.

No matter what government grant a person applies for that person will need to give progress reports regarding the work that the person is doing. This includes information every time the government asks for it involving how well the business is going with the money that was used in the government grants.

What States and Cities Are Doing to Help Small Businesses - New York Times

What States and Cities Are Doing to Help Small Businesses New York Times The state budgeted $250000 and is accepting applications for grants of $5000 to $25000, said Deborah Santy, director of the Connecticut Small Business ... and more »

Filling the gaps: Small loans - Minneapolis Star Tribune

Filling the gaps: Small loans Minneapolis Star Tribune Many of the nonprofit lenders created financing pools years ago with grant money from the US Small Business Administration and other federal or state ... and more »

The stimulus: one year later - The Torrington Telegram

The stimulus: one year later The Torrington Telegram Hartman Family Dentistry in Torrington received a $308000 Small Business Administration loan. The dental clinic used the loan as part of a refinancing ... and more »

Beard, small-business caucus issue economic plan - Shakopee Valley News

Beard, small-business caucus issue economic plan Shakopee Valley News Evaluate the effectiveness of the state grant and loan resources available to Minnesota's small businesses. Encourage the deposit of state funds into local ... and more »

Banks seek support for small business loans - Shanghai Daily

Banks seek support for small business loans Shanghai Daily Bad loan ratios of small business credit is about three times the industry average. Banks are reluctant to extend credit to small business for small margins ... and more »