This updated guide explains what grants are, where to find credible U.S. federal and private grant opportunities (Grants.gov, Candid, SBA, state and local agencies), and step-by-step advice for matching needs to programs, registering, preparing applications, and avoiding scams. It also clarifies tax and repayment issues and recommends free help resources.

What a grant is - and what it isn't

A grant is financial assistance that generally does not need to be repaid when you meet the award terms. Grants differ from loans and from contracts: they fund activities or needs, they have eligibility rules, and they often require reporting on how funds were used.

Grants can support education, small businesses, research, community projects, housing assistance, and more. Eligibility varies by program - some require U.S. citizenship, others accept permanent residents or organizations. Grant awards and rules vary by agency or foundation.

Common federal and private sources

  • Grants.gov - the primary portal to search and apply for federal grants.
  • Candid (formerly Foundation Center) - searchable foundation and philanthropic resources.
  • Small Business Administration (SBA) and federal programs such as SBIR/STTR for innovation funding.
  • State and local government agencies and community foundations.
Use these official portals and your local library's grant resources before paying for help.

Practical steps to find and win grants

1. Define your need and match the program

Be specific: education costs, a business pilot, community services, or research. Search with those terms on Grants.gov and Candid to find programs that fund that purpose.

2. Check eligibility and requirements

Read the full Notice of Funding Opportunity (NOFO) or grant guidelines. Note deadlines, allowable costs, who can apply (individual vs. organization), and reporting requirements.

3. Register early if you're an organization

Federal awards typically require registration in SAM.gov and a Unique Entity Identifier. Start registration weeks before a deadline; it can take time to complete.

4. Prepare a clear request

Grant officers review dozens of applications. Explain the problem, your plan, budget, outcomes, and how you will report results. Follow formatting and submission rules exactly.

5. Use free assistance first

Many agencies offer applicant webinars, Q&A sessions, and sample applications. Local SBDCs (Small Business Development Centers) and community foundations also provide free help.

What about taxes, credit checks and repayment?

Grants are not the same as loans, but tax treatment depends on how funds are used. Some grants (for example, many federal income-based benefits) may affect taxable income or benefits. For tax guidance, consult the IRS or a tax professional.

Most legitimate grants do not require credit checks or collateral. Beware of scams that charge fees to "guarantee" awards or ask for bank account passwords.

Final advice

Treat grant-seeking like a project: research, match, document, and meet deadlines. Start with Grants.gov, Candid, SBA resources, and your state or local agencies. If you hire a consultant, verify references and avoid anyone who promises guaranteed grants or asks for upfront fees to secure federal funding.

FAQs about Grant Money

Are grants the same as loans?
No. Grants typically do not need to be repaid when you meet the award terms. Loans must be repaid with interest. Always review the award terms to be sure.
Where should I start searching for federal grants?
Start at Grants.gov to search Notices of Funding Opportunity. For foundation grants, search Candid's directories and check your state or local community foundation.
Do I need good credit or collateral to get a grant?
Most legitimate grants do not require credit checks or collateral. Be cautious of offers that demand fees, credit checks, or guaranteed awards in exchange for payment.
Are grant awards taxable?
It depends. Some grants may be taxable depending on their use. For tax questions, consult IRS guidance or a tax professional.