You receive a call, email, or letter from the federal government informing you that you have won a free U.S. grant. To obtain the funds, all you have to do is pay a processing charge. How do you know if this grant is actually legitimate? Here’s all you need to know:
How To Know If A Grant Is Legitimate?
Here are some questions you should consider to know if a grant is legitimate:
#1. Have you applied for the grant?
This is one of the ways to know if the grant is legitimate. If you are ‘offered’ a grant, the first question you should ask yourself is, “Did you (even) apply for this grant?” If you receive notification that you have ‘earned’ a $10,000 grant to repair your roof, but you never applied for a grant to repair your roof in the first place, this is “too good to be true!” A proper application process is required for all award proposals. Furthermore, that process is usually somewhat lengthy.
With that said, if you are applying for a significant number of awards at the same time, you should keep a record somewhere for yourself. Make a note of the name of each award, the funding source that is providing the grant, the deadline, and any other pertinent information regarding the grant(s). That way, if you are unexpectedly alerted that you have won a grant, you can authenticate the legitimacy of that grant directly with the funding source. GrantWatch Members with MemberPlus+ have access to a personal grants calendar template, which helps them manage and track their grant opportunities, submissions, and wins. In GrantNews Notes, you may learn more about the benefits of the MemberPlus+ subscription.
#2. Were you asked to pay a fee?
Another thing to remember is that you should never be asked to pay for a grant. Grants are provided to you or your organization on the basis of merit and eligibility. If you are told to pay a little fee in exchange for a guaranteed bigger grant amount (reward), this is never a legitimate grant. Do not confuse this with subscribing for a grant-listing service, such as GrantWatch.com, where you must pay a membership fee to gain access to the entire directory. Paying this amount, however, does not guarantee you a grant. It merely ensures that you have access to grant-related information.
#3. Is the source of funding well-known?
When attempting to validate the legitimacy of a gift, it is critical to consider who is granting the money. Is it a well-known, well-established foundation or company? Is it a grant from a federal, state, or local government agency? If you are unfamiliar with the funding source, do some investigation to ensure that the entity is legitimate. Using the’search by organization name’ option on the IRS website, you should be able to locate the corporation. Once you have their contact information, you should contact them to ensure that you are communicating with the correct business.
If you have been given a legitimate grant, you should be notified in writing. You will almost never be alerted by phone or email, especially when it comes to government handouts. Remember that an email can be sent from anywhere, and phone calls can be made by somebody attempting to steal your money. Remember that in order to acquire a grant, you have to apply to a funding source. You should not rely on grant notification emails from social media platforms like Facebook or Instagram. You should not pay money to anyone via a cash app, wire, or any other type of currency in order to get a grant. This is frequently a dead giveaway of a grant scam.
You should be able to know which grants are legitimate and which are not if you use the above criteria.
Who Provides Legitimate Grants?
There are a few federal grant programs for for-profit businesses, as well as numerous state/county financial aid programs for economic development. The SBA provides disaster recovery grants at the federal level (think Hurricanes Katrina and Sandy).
Furthermore, several government agencies, such as the National Institutes of Health and the Defense Department, participate in the Small Business Innovation Research program, which assists enterprises in researching technological discoveries for possible commercialization in areas of interest to these agencies.
There are numerous financial support programs at the state/county level that promote business and employment creation in their respective geographic areas. Loans, equity investments, and grants are examples of these.
Corporate Grants for Small Businesses
Many large organizations and corporations have a philanthropic component that includes small-business grants. While some grants are only given to NGOs that serve specific industries, others are given to for-profit businesses.
#1. National Association for the Self-Employed Growth Grant
NASE members are eligible to apply for monthly small-business grants of up to $4,000, as well as an annual $3,000 college scholarship for their dependents. Grants are distributed throughout the year, with completed applications reviewed quarterly in January, April, July, and October.
#2. Verizon Small Business Grant
Verizon’s Digital Ready initiative allows small businesses to access free courses and educational resources as well as apply for grant assistance. Entrepreneurs must register on the Verizon website and complete at least two of the following: courses, live coaching, or community events to be eligible for a $10,000 small-business grant.
After you have accomplished these procedures, you can submit a grant application. For 2023, Verizon is awarding a total of $500,000 in grant awards. The most recent round of funding is available from October 12 to December 20, 2023.
#3. Small Business Growth Fund
The Small Business Growth Fund, a collaboration between the Global Entrepreneur Fund and Hello Alice, and supported by Etsy and Progressive, is an annual program that assists entrepreneurs in expanding their businesses.
This year, the initiative will give scholarships ranging from $5,000 to $25,000 to for-profit firms in the United States with less than $1 million in total revenue in 2022. The latest round of applications is open from September 18 to October 27, 2023. The winners will be revealed in November.
#4. FedEx Small Business Grant Contest
The organization’s annual grant competition offers over $300,000 to ten small businesses, including a $30,000 grant and $1,000 in FedEx print credits to the grand prize winners.
The competition is open to for-profit small firms in the United States with fewer than 99 employees. To apply, you must also have a valid FedEx business shipping account number and ship with FedEx. The following cycle will begin in early 2024.
#5. Venmo Small Business Grant
The Venmo Small Business Grant program provides $10,000 in free money to 20 qualified small companies. It also provides public marketing on the Venmo website and social media platforms, as well as industry coaching.
To qualify, you must have a Venmo account in the United States and an active Venmo business profile. You must also have fewer than 10 employees and yearly revenues of less than $50,000. The cycle’s applications closed in August, and the winners were revealed in October.
#6. Amazon Small Business Grant
The yearly Amazon Small Business Grant program provides free funding to small enterprises with an Amazon Business account and annual revenue of $1 million or less. The initiative provides incentives ranging from $15,000 to $25,000 to 15 entrepreneurs.
Winners will also receive a one-year membership to Business Prime as well as free eero Wifi and Kindle Scribe items. In July, the recipients for the 2023 cycle were revealed.
#7. U.S. Chamber of Commerce Top Small Business Awards
America’s Top Small Business Awards honors a small business for its contributions to the US economy and provides a $25,000 reward. The tournament also bestows honors and prizes on firms in a range of categories, such as emerging business and green/sustainable business.
Although you must have an established business in order to qualify, it must have been in existence for no more than one year. The application period for the 2023 cycle ended on July 21. The finalists were announced on October 4, and the grand prize winner will be announced at the America’s Top Small Business Summit on October 19.
#8. Visa Everywhere Initiative
The Visa Everywhere Initiative is a grant competition that provides cash to forward-thinking entrepreneurs in five distinct regions throughout the world. Applicants must demonstrate how they have created a product or service that creatively incorporates Visa’s products.
Visa will choose the best five finalists in each region, and these companies will compete in a global finals event. The overall competition winner receives a $50,000 small-business grant. Second- and third-place finalists, public favorites, and regional and local winners also receive further rewards. The North America region’s applications closed on June 26, 2023, and the worldwide finals were held on September 19 at TechCrunch Disrupt.
#9. Lenovo Evolve small-business grant
The Lenovo Evolve Small initiative is a program that provides grants and technology gifts to small businesses in the United States and Canada. This year, the Lenovo Evolve Grant provided $10,000 in financing, a Lenovo laptop, and business help to 30 small enterprises. The winners of the 2023 cycle have been revealed.
Grants for New Businesses
If you’re looking for new business grants, you might have a harder time locating them. However, several state and municipal governments, as well as private enterprises, provide beginning subsidies to small businesses.
#1. Incfile Fresh Start Business Grant
The Fresh Start Business Grant from Incfile provides a $2,500 grant to help young businesses meet launch costs. Incfile will also provide the winning business owner with free formation services in their state, free registered agent services for a year, and a free tax consultation.
To be eligible, you must intend to establish a new business or expand an existing one. Incfile also provides a Young Entrepreneur Grant to students who want to start their own enterprises. The next round will take place in 2024.
#2. Hello Alice grant platform
Hello Alice collaborates with a number of firms, like Progressive and DoorDash, to provide funding for small businesses, including startups. You can set up an account to be notified of new possibilities and to apply for grants that are relevant to your business.
#3. Amber Grant for women
WomensNet offers a $10,000 monthly Amber Grant and two $25,000 grants per year. Throughout the year, the foundation provides extra cash. Businesses simply need to fill out one application to be eligible for any of WomensNet’s grants. Women-owned enterprises, both new and established, are eligible.
#4. SubSummit Pitch Competition
Subscription-based businesses with fewer than two years in operation are eligible to compete in the SubSummit Pitch Competition. The yearly event’s winner receives a $10,000 small-enterprise award and $40,000 in business services.
To apply, you must submit a short film detailing your company, the motivation behind your brand, and, if desired, what you intend to do with the grant funds. Semi-finalists will battle digitally, while finalists will compete in person for the top prize. This competition’s 2023 cycle ended in May.
Now You Know The Grant is Legitimate: What Next?
If you are the lucky beneficiary of a legitimate US grant, make sure you understand its purpose and conditions from the start.
- What can the funds be put towards? Most grants are not general-purpose monies that can be spent any way the company sees fit. They are for specialized objectives that support the grantor’s mission. Check that the grantor’s and your missions are in sync.
- How much of the grant money can be used for “overhead”? Grants are available to fund initiatives and activities. This requires administrative assistance, so make sure you understand how much of the grant can be used for that.
- When will the payments be made? Many grants are given upfront so that the company has the finances to pay for the job. Some grants, on the other hand, are paid when agreed-upon milestones are met or when certain expenses must be refunded.
What Are The Chances Of Winning A Grant?
On average, only one out of every seven grant submissions is funded.
Are Grants A Good Idea?
Grant applications are a common way for NGOs to receive the funds they need to fund new and ongoing programs. Nonprofits raise funds in a variety of ways, including donations and fundraisers; grants are a fantastic method to get more financing.
Why Do Grants Get Denied?
The most prevalent causes for proposal rejection are a surprisingly limited number of straightforward and well-known failures: The submission deadline was missed. The topic of the proposal was inappropriate for the funding agency to whom it was submitted. The guidelines for proposal content, format, and/or length were not strictly followed.
How To Know A Grant is Legitimate: Conclusion
Unsolicited grants are frequently a hoax. When you have a legitimate grant, make sure you know and understand the terms and conditions to ensure it fits with the path of your firm.
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