Grants from federal agencies and private foundations can fund education, research, community projects, and some business activities. Grants differ from loans but require strict compliance, clear applications, and recordkeeping. Use official sources such as Grants.gov, Benefits.gov, Candid, SBA, and local foundations. Never pay to apply, and verify tax and reporting rules for each award.

Grants are not loans - but they have rules

Federal agencies and private foundations award grants to support education, research, community projects, and some individual needs. Grants differ from loans: you generally do not repay the award if you use it for the approved purpose. That said, grants come with eligibility rules, reporting requirements, and conditions. Misuse of funds can trigger repayment, penalties, or legal action.

What grants can (and cannot) fund

Grants can pay for things such as education, approved research, community services, small project costs, or specific business activities under certain programs. Direct federal grants to start a private business are limited and competitive; many business-support programs instead offer counseling, loans, or contract opportunities.

Not every personal expense is eligible. Whether a grant is taxable depends on the program, the recipient, and how funds are used. Check IRS guidance and the grant's terms before assuming a grant is tax-free.

Where to search for legitimate opportunities

  • Grants.gov - the primary portal for federal discretionary grants.
  • Benefits.gov - a directory of federal assistance programs for individuals.
  • Candid.org (formerly Foundation Center) - searchable information on private foundations and philanthropic grants.
  • SBA.gov and state economic development sites - guidance on business programs, competitions, and state grants.
  • Your city, county, and local community foundations - many local awards don't appear on national portals.
Never pay to apply. Legitimate federal and foundation grant applications do not require an upfront fee. Beware of cold calls, unsolicited offers, or sites that promise guaranteed awards for a payment.

How to improve your chances

Read eligibility and application instructions carefully. Follow the funder's format and deadlines. A strong application clearly states the need, the proposed solution, measurable outcomes, and a realistic budget. Keep documentation and receipts: most grants require periodic reports and records for audit.

If writing feels overwhelming, consider free help first: local Small Business Development Centers, university grant offices, community foundations, or nonprofit resource centers often offer no-cost assistance. Paid grant writers may help for complex proposals, but a fee does not guarantee funding.

Avoiding scams and common misconceptions

  • No guaranteed grant exists; awards are competitive and conditional.
  • No legitimate grantor will ask for bank account passwords or a social security number before awarding funds (they may require them as part of a legitimate onboarding process after award).
  • Do not confuse scholarships, tax credits, loans, and grants - each has different rules and tax consequences.
Finding and winning grants takes research and care. Use official portals, read the fine print, and document your work to stay compliant.

FAQs about Government Grants

Are grants free money I don’t have to repay?
Grants are not loans and generally don't require repayment if you follow the program's terms. However, misuse, ineligible spending, or failure to meet reporting requirements can trigger repayment or penalties.
Where is the official place to find federal grants?
Grants.gov is the main portal for federal grant opportunities. For assistance programs, check Benefits.gov. For private foundation funding, use Candid.org or local community foundation directories.
Do I need good credit to get a grant?
Grant eligibility is usually based on program criteria (income, project type, nonprofit status, etc.), not credit scores. Some business programs that involve loans or bonds will consider credit.
Can I apply for multiple grants at once?
Yes. You can apply for multiple grants as long as you meet each funder's eligibility and reporting rules. Be careful to disclose other funding sources if required and avoid double-charging the same expense.
How do I avoid grant scams?
Avoid any program that asks for an application fee, guarantees funding, or pressures you for private account details. Use official portals and verify funders' contact information before sharing sensitive data.

News about Government Grants

Arrival of Universal comes one step closer as Government grants planning permission - Bedford Borough Council [Visit Site | Read More]

Norwegian government grants more than $100m for hydrogen and ammonia-fuelled shipping - Hydrogen Insight [Visit Site | Read More]

LGA responds to Local Government Public Health Grant - Local Government Association [Visit Site | Read More]

It's happening: Universal Studios gets green light after Government grants planning permission - Bedford Today [Visit Site | Read More]

Wrexham AFC receives £18m from government despite Hollywood backing - The Guardian [Visit Site | Read More]

Scientists who advised government during Covid did not reveal they had received more than £200m in grants from one of the world's biggest pharma investors, report says - Daily Mail [Visit Site | Read More]

Exclusive gun club linked to Andrew Hastie awarded almost $20,000 in government grants - The Guardian [Visit Site | Read More]

Provisional Local Government Finance Settlement 2026/27: CCN responds - County Councils Network [Visit Site | Read More]