Finding a Federal Small Business Grant no Walk in the Park

A Home Business Article Contributed by Cassandra l. Keller

Finding a Federal Small Business Grant No Walk in the Park

You read and hear about them everywhere, "Free government grants for your small business." The truth is the government isn't standing on every street corner eagerly handing out free money to small business owners. In fact, grants are usually hard to find and apply for and once you have completed those steps, your company will most likely be expected to do something in return. The following is the low-down on federal small business grants and why you may want to focus your grant research elsewhere.

Obligations Come with Nearly All Federal Small Business Grants

If it is obligations you are looking for, getting a government grant will hook you up. Government grants are often filled with requirements that can land you in serious legal trouble if you don't hold up your end of the bargain.

If you own a small business that is in need of a grant, the only way you may end up getting on is by helping out your community. Most federal grants are awarded to companies that are planning a project for their town. Some examples include a state-wide program to re-train displaced workers, a project to attract new businesses to a depressed area, neighborhood street paving project, a county-wide flood control project, or a regional water conservation program.

If your small business just so happens to be involved in a project of this sort and receives a grant because of it, you will then be required to meet strict performance guidelines and standards during that project.

Obtaining a Federal Small Business Grant Means Strict Bookkeeping

If you do obtain a federal grant for your small business and it is attached to a community project, you will be required to track and record all the project's expenditures. You can also expect annual government audits during the project's timeframe. You may even be audited more often than yearly.

Usually, all grant monies must be used and if they are not, they are returned to the government.

Your business will have to help develop and abide by detailed program goals which must be carried out exactly as written in the grant application. If you must change any portion of the project, it will have to be approved by the government agency that funded the grant.

If you fail at your part of the grant/project agreement, you may face penalties ranging from economic sanctions to prison. Prison, of course, is in cases of improper use or theft of the grant funds.

Small Business Grants are Hard to Win

If you are a small business owner, chances are you don't have the time or resources it takes to garner a government grant. In general, most government grants are applied for and given to other federal agencies. These agencies usually employ full-time grant-seekers to assist in the process, something most small business don't have the luxury of doing.

Overall, if you are in need of a small business grant, your best bet is to check with your state, not the federal government.