Applying For a Grant?
Read This First...
It is possible to get a grant for your business but
it is even more possible that someone will get you to
part with your money only for you to receive nothing.
There is no way that anyone, other than the grant
funding body, can guarantee you will get a grant.
By writing a business plan you will increase your chances
dramatically but we cannot guarantee you will get a
grant.
And neither can anybody else!
Whilst we urge you, if you are serious about getting
a grant, to write a business plan, we urge you even
more to follow these four simple rules.
- Be very wary of anyone who promises or guarantees
they can get you a grant or a loan, particularly if
you must pay in advance for the service.
- If you are tempted to respond to one of these
offers because of a money-back guarantee, be aware
that they may impose so many conditions it could be
difficult to ever get your money back.
- If you are experiencing financial problems and
believe you may qualify for some kind of aid, check
with your city or state unemployment or social assistance
office.
- Advertising in recognized media outlets or on
the Internet does not guarantee the legitimacy of
the company behind the ad.
Thousands of people like Jane Smith have received letters
from grant research companies. This one calls itself
a "financial finder and matching service." Another one
says it "offers customers all the information they need
to receive free cash guaranteed." Many promise for about
$20 to $40 they'll prepare a list of foundations suited
to your needs and tell you how to apply.
"When I got the flier I got really excited," says Smith.
"I thought I could get a grant to open my business."
She wanted to turn her hobby of crocheting colorful
ponchos into a business.
"I never make them in the same color twice," Smith
says.
But she didn't have the start-up money. So when she
got something from National Grant Finders, Inc., she
felt her luck had changed. The first item listed for
landing grant money was "operating a new home business."
For $39 she got a manual on how to request grant money
and a long list of foundations she should write.
She than spent around $50 more for stamps and sat down
to write letters asking for grants, following the instructions
and checking off nearly every foundation listed.
"I sent 100 at one time," says Ohm. "And the first
week I started getting letters back. And I got them
two or three a day."
She got the same answers to all of her letters.
"I'm very sorry. I fear that you may be the victim
of a heartless scam, from what we know, no foundations
have been able to make grants to the people who write
these letters."
Lately grant foundations have been inundated with heartbreaking
appeals from people they just can't help, letters spawned
by companies like Foundations Grant Assistance and National
Grant Finders.
They say "foundations are required by law to give away
at least five percent of their assets."
That's true.
They say "foundations give away billions of dollars
every year" and again that's true. But they also say
that money goes to individuals.
Let us be clear, the percentage of grants that go to
individuals directly is very, very, very small.
But National Grant Finders clearly states you can get
grants for "any reason whatsoever." Foundation Grants
Assistance says you can even get grant money to "go
on vacation." Companies claim "thousands of individuals
receive free cash grants every single day."
What's more, they promise customized lists.
There is no such thing
This is how you can get a grant:
- Write a business plan setting out what you want
your business to achieve
- In the plan set out the reasons your business
will benefit the community; jobs or a service unavailable
elsewhere etc.
- Set out how much you need and what you will spend
it on
- Take the plan to a local authority, to the SBA,
business Link or any similar body in your area and
ask them "Where do I go?"
Will you get a grant?
Our answer to you is simple, we do not know!
But let us be very clear - it is worth a try.
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