Grants
Many constituents contact
me after seeing infomercials touting so-called "free" government
money. I hate to burst the bubble, but there is no free government
money. Grants almost always require matching funds of at least 25
percent, and it is sometimes much higher. Also, very few federal
grants are available to individuals, and individuals cannot apply
for federal grants that are intended for organizations.
Many of you have probably seen the late-night infomercials by
Matthew Lesko, who wears suits littered with question marks. Many
of my constituents don't realize this, but the information about
grants in his books is lifted straight from a government
publication that anyone can look at for free in any public library
or online. It is called the Catalog for Domestic Federal
Assistance, or CFDA. The grants.gov site
also has a link to this document.
I would caution folks not to be swayed by claims of free or easy
government money. The Better Business Bureau in Washington, DC, has
warned consumers to be careful, and the New York State Consumer
Protection Board has warned that Lesko's ads are misleading.
The federal government has one single website that contains
everything you need to know about federal grants. It is free and
anyone can look at it. Grants.gov has information on every grant
offered by the federal government. There are more than 1,000 grant
programs through 26 federal agencies.
If you are interested in seeing what federal grants are
available, you can sign up for an e-mail alert through grants.gov.
You will get an e-mail each time a new federal grant is offered,
and you can seek notification about only those grants that interest
you. If you decide to apply for a federal grant, you must register
online, but you can browse and search for grants without
registering.
Again, most federal grants are not available to individuals.
Instead, they are offered typically to the following
organizations:
- Government Organizations
- Education Organizations
- Public Housing Organizations
- Non-Profit Organizations
- For-Profit Organizations (other than small businesses)
- Small Businesses
Small business loans and small business grants may be awarded to
companies that meet the size standards that the U.S. Small Business
Administration (SBA) has established for
most industries in the economy. The most common size standards are
as follows: 500 employees for most manufacturing and mining
industries; 100 employees for all wholesale trade industries; $6
million for most retail and service industries; $28.5 million for
most general & heavy construction industries; $12 million for
all special trade contractors; and $0.75 million for most
agricultural industries.
The SBA generally does not offer
grants, and the SBA does not offer grants
to start or expand small businesses. Instead, it offers a wide
variety of loan programs. Grants that are awarded by the SBA are generally designed to expand and
enhance organizations that provide small business management,
technical, or financial assistance. These grants generally support
non-profit organizations, intermediary lending institutions, and
state and local governments.