A Definitive Guide to Government Grants

Grants are also used as a method for funding research and development of technology-based products and services for the federal government. If you can't qualify for a grant, the Small Business Administration is a possible source of financial assistance to business owners looking to create or expand their businesses.

These grants carry eligibility criteria that may specifically exclude certain organizations in order to target the funding approved by Congress. Contrary to popular rumor and questionable advertising, grants are not awarded for personal financial assistance to those who have fallen on hard times.

How do you apply?
While it's tempting to think of grants as "free money," securing a grant is a complex process that requires significant time and expertise. Grants also require a commitment to fulfill certain obligations in exchange for the money, and failure to do so on schedule may result in legal penalties. This quid pro quo arrangement is designed to ensure that the government gets a substantial return on its investment.

The place to start is to review the CDFA, which provides an abundance of information on how to apply and how the money can be used. It explains the application review and award process, as well as the reporting and performance requirements associated with different programs.

You can also initiate direct contact with the government department that sponsors the specific type of grant you are interested in securing. These agencies all have Web sites for quick access to such information.

Types of grants
Most grants are used to promote the public good directly, either immediately or over the long term. This includes retraining programs to aid those who lost their jobs, local street improvement projects and programs to attract business development to depressed sections of a city or town.