GRANTS - Government


Government Grants
 

Grants are not benefits or entitlements. A federal grant is an award of financial assistance from a federal agency to a recipient to carry out a public purpose of support or stimulation authorized by a law of the United States. Federal grants are not federal assistance or loans to individuals.


A federal grant may not used to acquire property or services for the federal government's direct benefit. The 26 federal agencies offer over 1,000 grant programs annually in various categories.



More than 1,000 grant programs are offered by the 26 federal grant-making agencies, and these programs fall into 21 categories.


We have all seen them, late night infomercials, websites, and reference guides, advertising "millions in free money" Don't believe the hype! Although there are many grants on Grants.gov, few of them are available to individuals and none of them are available for personal financial assistance.


Grants are funds dispersed by one party (Grant Makers), often a Government Department, Corporation, Foundation or Trust, to a recipient, often (but not always) a non profit entity, educational institution or business.

There are many groups of organizations that are eligible to apply for government grants. Typically, most grantee organizations fall into the categories below.

Government Organizations


  • State Governments
  • Local Governments
  • City or Township Governments
  • Special District Governments
  • Native American Tribal Governments (federally recognized)
  • Native American Tribal Governments (other than federally recognized)
     

Education Organizations


  • Independent School Districts
  • Public and State Controlled Institutions of Higher Education
  • Private Institutions of Higher Education

Public Housing Organizations


  • Public Housing Authorities
  • Indian Housing Authorities

Non-Profit Organizations


  • Nonprofits having a 501(c)(3) status with the IRS, other than institutions of higher education
  • Nonprofits that do not have a 501(c)(3) status with the IRS, other than institutions of higher education

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
  • $0.75 million for most agricultural industries

Note that about one-fourth of industries have a size standard that is different from these levels. They vary from $0.75 million to $28.5 million for size standards based on average annual revenues and from 100 to 1500 employees for size standards based on number of employees.

With few exceptions, all federal agencies, and many state and local governments, use the size standards established by SBA. Info on SBA LOANS


Individuals

An individual submits a grant on their behalf, and not on behalf of a company, organization, institution, or government. Individuals sign the grant application and its associated certifications and assurances that are necessary to fulfill the requirements of the application process. So, if you register as an Individual, you will only be able to apply to grant opportunities that are open to individuals. An individual cannot submit a grant application to a grant opportunity that is just open to organizations.


The more dubious consumer finance companies are held to engage in the following practices.


  • Failing to tell people who ask for a loan from the lender that they really have good credit and can get a better deal somewhere else (a subprime loan is usually more expensive than a prime loan). This is one of the primary criticisms of industry and is implied in many others critiques. For example consumer finance companies have been called racist because of branches they might have opened in primarily African American areas. If their customers all had bad credit they would be working in the same way they would elsewhere, but it is implied that they are preying on the communities' lack of knowledge of lower priced alternatives.
  • Sending live checks through the mail which when used become loans. This can trick some people, and the interest rate is usually purposely high (although disclosed)
  • Charging very high fees on a mortgage refinance.
  • Offering refinance deals that are worse than the previous loan, usually by showing that the new payment will be lower, but not revealing that the new payment does not include taxes and insurance.
  • Selling single premium credit insurance, also financing that into the loan

Critics consider also the concept and geographical placement of consumer finance stores as a form of "redlining". This is because the sub prime lenders in poorer communities will often be the only local store, yet will be higher priced.


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