Top 4 Myths About Government Grants For Small Businesses
There are several myths about government grants which are accepted as facts. It is important to dispel these myths.
• The “Free Money” Myth – Well-known personalities keep advertising on TV about free money from the governments in the form of grants. But this free money comes with a lot of stipulations. The requirement may be to hire a certain number of people so that they in turn can pay taxes to the government. There may be a particular area assigned to the business. There may be other performance requirements too. It is wise to ascertain everything before signing on the dotted line.
• The “Grants Are For Everyone” Myth – Since you don’t have to repay money given through grants, it is meant for specific people only. The process is very selective and only particular people are selected. Generally, the government supports certain types of business at times. So the typical business has to be in that category according to economic needs and forecasts. However, a certain level of performance is always stipulated.
• The “Grants are available for women, minorities and the disabled” Myth – There are no groups which have a right over grants. There may be certain goals to achieve while giving these grants. The Department of Defense may show preference for disabled veterans but they are very few. The business is always such which attracts the attention of the government and has top priority.
• The “Its Easy” Myth – Since grants are very essential, they are always difficult to obtain. You have to provide details about personnel planning, revised projections, management experience, etc. There is tough competition to get hold of these grants and government can pay only a certain amount of money. Therefore, there is always a good deal of enquiry to be made before a grant is assigned.
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