US Grants - The Government Alternative to a Loan

By: Ernie H Click author's name for more of his/her articles

Unlike what you may have heard or think you know, a Government Grant is not a loan. On the contrary, it is a form of funds that you receive from a Government agency after meeting certain eligibility requirements. Grant money is yours to keep and does not have to be repaid, unlike a loan. Grant money is also interest free and no taxes are applied. One more differentiation between a loan and a grant is that your credit has no bearing on whether you receive grant money or not. This means that you do not have to submit a credit report, get a co-signer or even post collateral for a grant. Once you are approved for a grant the money is yours. When applying for a US grant, the amount of money you apply for is always up to you, the grantee. So long as the request meets government criteria set forth in the regulations, you are responsible for setting the limit on how much money you need or want. One of the criteria for obtaining a US grant is that you must be a US citizen, a responsible taxpayer and be over the age of 18.

Even though there are no credit checks when obtaining grant money and no formal loan proceedings, this money is not to be taken lightly and one should exercise caution as to how he or she handles the funds. The grantee is always expected to meet the obligations set forth by the government agency that provided the funds. If you receive a grant, most of the time you will be required to submit progress reports. Misuse of grant money is strictly forbidden, and could result in serious repercussions to the grantee.

There are many types of grants available within the United States. US grants are classified as either general purpose grants or program development grants. General purpose grants provide funds for operation of an established organization, while program development grants are funds provided by the government that can be used in the processes and general procedures of the organization. Other types of grants include individual grants, scholarship grants and business grants. An individual grant can be used for personal reasons within your community and to help with individual needs. Of the business grants available, there are funds to assist business start-ups or to help an already established business. Many grants are only available at certain times of the year. This helps to set standards and timelines on when people can apply for a grant. When funds are made available through a government agency, an announcement is made in the Federal Register with the specifics.

The US government gives out billions of dollars every year in free grant money. The philosophy behind this is that grants help support and provide aid to the US citizen and taxpayer in order to improve the communities in which they reside. Grants also support the business world by providing positive cash flow and available capital. Grant money still needs to be treated with care and the grantee still has obligations and a responsibility not to misuse the funds. Just remember that this is money that all American taxpayers contributed to and should be handled responsibly.

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About The Author: Obtaining a Government grant can be somewhat confusing. However, there are plenty of resources available on the Internet to assist you with whatever type of grant you may be contemplating. Whether you need a business, scholarship or individualgrantmoney.com/ "> individual grants help is available.