An Overview of U.S. Government Grants

You probably already watched several infomercials telling you that free money is available in the form of U.S. government grants. While it is true that the United States government allocates millions to fund federal grants, it is not true that you can easily get them.

There are lots of documentations to accomplish and obligations to meet in order to qualify for a government grant. You must take note also that majority of these federal grants are applicable only to organizations, state agencies, and accredited businesses.

Here is a basic overview of the United States government grants program so you can understand how to benefit from it.

The Basics of Government Grants

Federal grants are not financial rewards or entitlements. These are the most important things you need to understand about federal grants. A grant is an award provided by a US government federal agency to a specific proponent.

The grant money given has a specific use and should be spent solely for that purpose. Essentially, you cannot treat a government grant as a business loan or assistance to meet your individual needs.

There are other agencies that provide assistance for individuals. So if you are planning to use federal grants as lunch money, then better forget your plan and look for other sources of financial assistance.

Who Are Entitled to Receive Grants

Not everyone is entitled to receive federal grants. Specifically, individuals cannot take government grants if they will use it for personal purposes. If you want to get personal financial assistance from the U.S. government, a federal personal benefit and assistance program would be best for you.

For official U.S. government grants, beneficiaries could be state agencies, city or township agencies and organizations, and Native American tribal governments.

Educational institutions are also entitled to receive federal grants as well as local public housing authorities, agencies, or organization. Non-profit and For-profit organizations are also eligible to receive federal grants.

For small businesses, financial assistance and grants can be provided as long as they meet the official standards set by the U.S. Small Business Administration. If you want to get a business loan for your small enterprise, the U.S. SBA would be in a better position to help you.

Individuals can also get federal grants as long as they meet all the requirements and documentations set by the federal agencies awarding the grant. However, you can only get grants allocated specifically for individuals. You cannot apply for grants allocated for state agencies and organizations.

There are millions of dollars allocated by the U.S. government for public grants. Every year, some of these funds are being returned to the Treasury because they remain unused.

If you want to get a comprehensive listing of available federal grants, you should look at the Federal Register and browse the Catalog of Federal Domestic Assistance for approved grant projects.

These sources are free and you can get a copy of them from your local library or from the official U.S. government portal. That is why you do not need to purchase advertised listings of available government grants because these are public documents that you can easily get for free.

Tips to Get US Government Grants

There are many types of projects and platform that the U.S. government can fund. Every year Congress sets the funds for grants, An Overview of U.S. Government Grants, small business loans, financial assistance and student loans.

Once the proposed budget for these grants was approved, it will be announced or published in the Federal Register. You will be able to see detailed information of the types of grants, required projects, and eligible persons and entities who can apply for the grants in the Catalog of Federal Domestic Assistance.

So here are some useful tips that could help if you want to receive official federal grant money for your project proposals or for financing a small business.

Understand Grants vs Loans

It is important to understand the difference between grants and federal loans. You can avoid wasting your time applying for a grant when you should be applying for a small business loan.

Federal grants are created to fund public projects. For example, there are funds for housing development projects, empowering women, or development initiatives for Native American tribal groups. Your project proposal therefore should be related and directly addresses the needs of these sectors.

If you want specific government grant assistance for your small business, then you have to look in the database of U.S. Small Business Administration. The SBA lists possible donors and funding agencies that can extend loans or grants for small businesses.

So if you are actively looking for official grants, make sure that you know where to look. It is a total waste of valuable time, resources, and effort if you start applying for grants only to find out that you are not eligible for it.

Prepare Documentations of Your Project

If you believe that your envisioned project passes the criteria to receive federal grant, then the next step you have to do is prepare your documentations.

First, you should carefully compose a detailed project proposal. The proposal should include the project framework, target beneficiaries, detailed budget, proponent information, and viability and sustainability justification.

You should also prepare the necessary organizational documents required by the donor federal agency. For example, you have to submit your organization’s profile, relevant experiences, tax information, track record in implementing government projects, and other documentations that the federal agency may require.

You also have to fill up official forms to apply for the grant, have them notarized so you can attach it to your project documentation. This is a very tedious process and will require patience and many hours preparing the paper work.

No Easy Way to Get Federal Grants

There is no easy way to get a federal grant. There are federal laws stipulating the processes and requirements needed in order to get government grants. Do not be fooled by scam artists who will tell you that it is very easy to acquire government grants for all your financial needs.

However, if you persevere and accomplish all the necessary documents required by a federal agency, then there is a great chance that your project proposal could get the nod of the review boards.

Federal grants are tax payers money provided to organizations, state agencies, and individuals that will implement projects for the public good. Make sure to use these grants wisely so you can avoid legal issues when the federal government audits your project.