How to Find and Apply for Government Grants

The reason people and organizations want to apply for government grants, usually varies. In general, most grants are not meant for individuals. However, there are a few exceptions.

Primarily, most of the grant recipients consist of small businesses, institutions, local governments, organizations, and state governments. Today, a number of different government grants are available. Even so, obtaining a government grant comes with a number of obligations. For more information, keep reading below.

Understanding What A Grant Is

Government grants awarded to recipient, originate from a federal agency. Primarily, these federal agencies mainly have the aim to assist the recipient financially so they can carry out a specific public purpose.

Therefore, grants are not entitlements or benefits. Instead, grants consist of United States authorized type of financial assistance geared toward having the money go towards something beneficial or stimulating for the economy.

Further, people cannot obtain a government federal grant for personal use in acquiring services or property.

Currently, 26 federal agencies comprise the grant programs available. Categories of government grants include:

  • Agriculture
  • Arts
  • Business and Commerce
  • Community Development
  • Consumer Protection
  • Disaster Prevention and Relief
  • Education
  • Employment, Labor, and Training
  • Energy
  • Environment
  • Food and Nutrition
  • Health
  • Housing
  • Humanities
  • Income Security and Social Services
  • Information and Statistics
  • Law, Justice and Legal Services
  • Natural Resources
  • Other
  • Recovery Act
  • Regional Development
  • Science and Technology and other research and Development
  • Transportation

Who Is Elgible to Apply for Government Grants

In general, many have heard or read the advertisements about millions in grant money they could have free access to. However, this is the furthest thing from the truth. Ultimately, grants are not free. When someone receives a grant, this entails an obligation. Failure to fulfill this obligation can lead to a large amount of legal troubles.

Therefore, advertisements and infomercials for free grant money is not something that a person should believe. Overall, a large number of grants are available, but most are not for individuals. Even so, none is meant for personal financial assistance. Mainly, those eligible to apply are:

Educational Organizations

  • Independent
  • Public and State
  • Private Institutions of higher education

Government Organizations

  • State
  • Local
  • City or Townships
  • Special Districts
  • Native American federally recognized Tribal Governments
  • Native American other than federally recognized Tribal Governments

Public Housing Organizations

  • Public Indian Housing Authorities

Non-profit Organizations

  • Nonprofit with and without a 9(c)( 3) status filing with the IRS For-profit Organizations

Small Business

A small business may apply for a loan or a grant as long as they meet the size standards set by the U.S. Small Business Administration (SBA). The SBA generally establishes the size standards for most industries. Commonly, the size standards go according to:

Industries # Employees
For most manufacturing and mining 500 employees
All wholesale trade 100 employees
Industries Annual Revenue
For most retail and service $6 million
For most general and heavy construction $28.5 million
All special contractors $12 million
For most agricultural $0.75 million

Nearly one fourth of all industries have a size standard, which differs from the number noted above. On average, the size standards and annual revenue for a business to be considered range from .75 million to 28.5 million and 200 to 1500 employees.

In some cases, there are exceptions, but very few. If you would like to learn more information about loan opportunities for small businesses, you can find it on the Small Business Administration website.

Individuals

When individuals apply for a grant, they are not applying on behalf of a company, institution, government, or organization. Instead, the individual signs and certifies on the grant application that they have the necessary qualifications for fulfilling the grant application process.

Any individual who wants to apply for grants is restricted to applying to grants that are open to individuals. This means, individuals are not allowed to submit a grant application for opportunities meant for organizations and not individuals.

In any case, an individual must be over the age of 18 and a legal resident of the United States in order to apply.

How to Apply

It is important that a company, individual, or organization, understand all of the application guidelines when applying for a grant. Furthermore, they should understand the application process criteria set as well. Anyone can find grant opportunities at either grants.gov or the Catalog of Federal Domestic Assistance at cfda.gov.

Before applying for a grant, always ensure you are eligible. In the case that you are, then look into the type of projects the federal agency has funded in the past. This will give you a better idea in regards to any changes you may have to make or whether your project is something they will have interest in. Throughout this time, make sure you gather all of the records, reports, and other types of information required for the post assistance.

Also, make sure you take down all of the agencies contact information. This way, you can easily contact the agency in regards to obtaining a grant application kit. When you receive the grant application kit, fill it out and go over your grant proposal to make sure it includes all of the information they are looking for. Lastly, after going over everything and checking that you have included everything, send it in.

Types of Grants

Mainly, U.S. Citizens have a choice from five main types of grants. Currently, grants consist of:

Project Grants

Commonly, project grants consist of the most awarded type. These types of grants are awarded on a competitive basis. Most of the time, recipients receive rewards in areas of art related projects, educational goals, scientific research, social services, in addition to technological development.

Formula Grants

Normally, recipients of the formula grants consist of families. Mainly, the grant aims to help families with raising their children. Furthermore, the grants are used in employment training as well.

Categorical Grant

A categorical grant meant only for a specific purpose or project. For instance, they may award this type of grant for urban forestry assistance.

Block Grant

The block grant further groups the categorical grants so they become one type of program. Such example would entail environmental block grant.

Earmark Grant

This type of grant is never given out on a competitive basis. Instead, it is very specialized and surrounds funding around political lobbyists.