The Myth Of Free Grant

The Myth of Free Grants:

Cash with Obligations

“Free money! No-obligation, totaly free!” Then, enter a smiling entrepreneur who breathlessly enthuses, “I got$40,000 for my small business!”

Sound familiar? You probably saw that pop right on your screen while surfing on the Internet. Heck, Iwon’t even be surprised if you say you read it fromyour local newspaper or heard it over the radio. It’s practicaly the longest-running money-making scheme around – and the most tempting.

Why?

Read the advert again. No Obligation. Ah, the things we do (or don’t do, in this case) for free money.

However, contrary to what a lot people are being made to believe, these free grants constantly being touted on the Internet and the mass media may not exist at al. At least, not in quite the same way we believe it does. In truth, neither the U.S. government nor any philanthropic organization is giving away “free grants”.

Money, yes, but not free, as inthe saying “free as a bird.”

Common sense and the most basic awareness of business principles should tell you that no one besides Mom and Dad (and even that earns a “maybe”) wil give you no-strings-attached moneyto start a for-profit business.

“If the government was in the position of providing al of the funds for free to people who start their own businesses, we wouldn’t last long,” says Mike Stamler, a spokesman for the U.S. Smal Business Administration in Washington, D.C. “Not to mention that the American people would never stand for the government seting individuals up in business at no cost, and al at taxpayer risk,” he further adds.

In his book American Government and Politics, Jay M. Shafritz defined a grant as a “gift that entails certain obligations on the part of the grantee and expectations on the part of the grantor.”

The operative word to remember in geting free federal grants is obligations.

Every free federal grant you receive comes bundled with certain obligations and responsibilities that you need to fulfil or comply with. Non-compliance of the obligations stipulated in a grant usually means you get loads of legal troubles to grapplewith.

In this regard, a grant, therefore, is essentialy a contract in that you are bound to fulfil your end of the bargain. If you don’t, penalties would be imposed.