Government grants and loans | USAGov (2024)

FAQs

Is federal government grant legit? ›

Legitimate grants do not show up at your door as a surprise—you have to apply for them. So, if you are offered a grant you know nothing about, most likely it is a scam. Is a fee involved? Grant applications are usually free as they are sourced at the federal or state/county level with public funds.

The government does not offer "free money" for individuals. Federal grants are typically only for states and organizations.

GRANTS OVERVIEW

The federal government does not offer grants to individuals to start businesses or cover personal expenses. Websites or other publications claiming to offer "free money from the government" are often scams that should be reported to the Federal Trade Commission.

A subsidy is a benefit given to an individual, business, or institution, usually by the government. It can be direct (such as cash payments) or indirect (such as tax breaks).

Once you've submitted your grant proposal, it can feel like a bit of a waiting game. But remember, don't put all your eggs in the one basket. Unfortunately, less than 20% of grant proposals are funded. Some sources estimate that applying for three to five grants will increase your chance of winning to 89%.

The federal government provides grants for students attending college or career school. Most types of grants, unlike loans, are sources of financial aid that generally do not have to be repaid.

Program Development Support

The most popular type of grant is for Program support. Program grants provide funding for specific projects or programs. Generally, these are restricted grants, where recipients must only use funds for the exact purpose outlined in the grant proposal.

Ads and social media posts claiming Americans can receive a $1,400 American Health Stimulus check or subsidy are a scam. No such government program exists. Avoid providing personal details or payments to strangers promising stimulus checks.

What are Loyalty Grants? Loyalty Grants are need-based grants available to Gamma Phi Betas who are experiencing unforeseen, extreme financial challenges created by a health crisis, natural disaster or other unexpected life circ*mstances.

Does the government offer personal loans? ›

The federal government does not offer personal loans. The federal government offers loans for specific purposes, including education, housing, and business. In most cases, the federal government does not loan money directly, but works with private lenders to provide funding.

A grant is a form of financial aid that doesn't have to be repaid (unless, for example, you withdraw from school and owe a refund, or you receive a TEACH Grant and don't complete your service obligation).

A "grant" is a general term for funds that organizations receive that are not expected to be repaid. To receive a grant, organizations must compete for funds by submitting an application and undergoing an evaluation process. Grants may be awarded by state or local agencies, private foundations, or corporations.

The main difference between a grant and a loan is repayment. A loan requires you to repay the money you borrow, whereas a grant does not. Grants are, essentially, a gift. In other words, they're non-repayable.

The main difference between grants and funding is that grants don't need to be paid back. This results in stiff competition and an involved application process for grants. Funding, which can come from a traditional loan or an alternative method, is more accessible to some businesses.

Complex Application Process: While the application process may be transparent, it can also be complex and time-consuming. Government grant applications often require extensive documentation, detailed project proposals, and rigorous compliance with regulations.

A grant is a way the government funds your ideas and projects to provide public services and stimulate the economy. Grants support critical recovery initiatives, innovative research, and many other programs listed in the Catalog of Federal Domestic Assistance (CFDA).

In order to submit applications via Grants.gov, your institution must first register with the Web site and create an institutional profile. Once registered, your organization can apply for any government grant on the Grants.gov Web site.