Ask Stacy: Where Can I Get a Government Grant?

What's Hot

Funny Money: Financial Wit and Wisdom From 50 Top ComediansCredit & Debt

Shoppers Boycott Businesses Selling Trump-Branded ProductsBusiness

50 Best Gifts Under $25 for Everyone on Your ListFamily

What the Richest 1 Percent Earns in Every StateFamily

6 Stores That Allow Coupon StackingSave

Why Washing Your Turkey Can Make You IllFamily

10 Ways to Retire Earlier Than Friends on the Same SalaryGrow

7 Foods That Can Lengthen Your LifeFamily

7 Government Freebies You Can Get TodayFamily

10 Ways to Pull Together the Down Payment for a HomeCredit & Debt

Free money in the form of government grants is a rumor that just won't die. But I'm dead certain you're not going to get a federal grant to prop up your business or fix up your home.

It’s easy to believe there’s free money out there in the form of government grants. Offers are plastered all over the Internet and on TV infomercials, and they all promise to hook you up with free government money – in exchange for a nominal fee.

But are they true? Over the years, this has been one of the most-asked questions to Money Talks News.  Here’s one I got just last week…

Dear Stacy:

I’m curious to know if applying for government grants (other than just advanced schooling) is easy.

I have tried approaching the idea through search engines, and the only thing I can get to are pay per click sites that offer to see if I am eligible for government grants.  Then I am bombarded by offers for more schooling.  Is schooling the only way to obtain a grant?

There’s got to be a better way.  I just don’t know what it is.  Please help if you can.

– Tony

And here’s one I got two weeks ago…


how can I apply for a federal grant without getting scammed. The grant money would be used for home improvements. Thank you very much for your help.

– Jim

And here’s one I got last year…

Hi, I have a question. My name is Bonnie. My husband and I own a small business that we have put all of our savings into and now that the economy has gone south we are having a hard time. So I applied for a small business grant. I received a phone call 10/26/10 from a Mr. (redacted) from the web site (redacted) telling me we can apply for a fifty thousand dollar grant. If we give them $398 they will file the paper work and in 5 days we will know and it’s a money back guarantee. I would like to know if this is an upstanding web site. This is the second place to call me – the 1st one said I needed to give them twenty five hundred up front and three thousand at the end when we received the grant money and it sounded funny, so I declined the first call. Thank you for your time.

Are government grants real?

Like many persistent rumors, the one about government grants contains a grain of truth.

The government does hand out grant money – just not to folks like you and me. The government might give a grant to a university, for example, to explore the efficacy of an experimental drug. But money to help prop up your small business? Nope.

How do I know? Well, other than the fact that it’s completely illogical to expect taxpayer money to be given to for-profit businesses, Uncle Sam also says so in black and white.

Here’s a cut-and-paste from this page of U.S. Small Business Administration…


The federal government 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 only available to non-commercial organizations, such as non-profits and educational institutions in areas such as, medicine, education, scientific research and technology development. The federal government also provides grants to state and local governments to assist them with economic development.

In short, there’s virtually no such thing as free money in the form of a government grant for a for-profit business or ordinary citizens. Anyone promising one in exchange for a fee is a liar and a thief.

If you’re trying to get financial help for your business, check out the SBA’s site at You won’t get free money, but you will get free information on finding funding, including government-guaranteed loans.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!


Read Next: 7 Freebies You Can Grab in December

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,900 more deals!