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Facts About Government Grants

BusinessUSA does NOT provide grants for starting and expanding a business.

Government grants are funded by your tax dollars and, therefore, require very stringent compliance and reporting measures to ensure the money is well spent. As you can imagine, grants are not given away indiscriminately.

Grants from the Federal government are authorized and appropriated through bills passed by Congress and signed by the President. The grant authority varies widely among agencies. For example, the U.S. Small Business Administration has authority to make grants to non-profit and educational organizations in many of its counseling and training programs, but does not have authority to make grants to small businesses. The announcements for the counseling and training grants will appear on grants.gov. Indeed, any federal grant program that a business or non-profit partner may be eligible to apply for will appear on grants.gov.

Some business grants are available through state and local programs, nonprofit organizations and other groups. For example, some states provide grants for expanding child care centers; creating energy efficient technology; and developing marketing campaigns for tourism. These grants are not free money, and usually require the recipient to match funds or combine the grant with other forms of financing such as a loan. The amount of grant money available and eligible uses vary with each grantor.