In challenging times…Beware Free Money calls.

In these challenging economic times, businesses and residents alike are having a tough time making ends meet.  It is during these times, we have to be careful about spending friviously in the HOPES to get money back.  This is specifically written to  make honest, hardworking citizens and business owners aware of the many SCAM’s and miss information out there today on “Grants” or “free money from the government”.  I was always brought up in a culture that nothing is “free”, you must work for it or it will have a gotcha of some kind.  Most recently, there has been a larger amount of calls from soliciters that sell their professional talents as grantwriters.  Yes, of course there are legitimate grant writers in the business realm.  As I have been in that realm for more than 10 years, I can tell you there are very few that do a GREAT job, and those that do are so busy that they don’t need to be soliciting.  This should be your first “red flag”; the phone soliciation. 

Many of these “so called” grantwriters will promise you a huge grant, if you only put down a huge amount of money.  They say there is a lot of “free money” out there.  This should be a second “red flag”;  the statement “free money”.  All financial assistance of any kind, has requirements on it.  Many times it is that the money must be given out to an individual or business as a “loan” through a non-profit or governmental agency.  If it has to be paid back, it is NOT free.  Most of these types of grants (loans) come from the government.  There is another source of “grants”.  These funds come from private and community foundations; but, it is illegal for them to give grants “free money” to businesses (for-profits).  They can only give to other charitable programs and organizations, which excludes any of that money getting to (for-profit) businesses or individuals (directly).

There are some programs out there in business development circles, such as the Phillips County Economic Development, which offer special programs which provide assistance toward business development and expansion; but they have their own guidelines and regulations.  Every area is a little different in these programs, but usually these programs are offered through a non-profit or county/city government.  

I am sharing this information, so that in these times of need our local businesses that need the most help will know where to find it or ask for help.  Common Sense as my grandfather said to me, “if it sounds too good to be true, it probably is”.  Watch out for phone calls from professional grantwriters willing to find you thousands of dollars for a nominal fee.   Ask them questions, get information on their company, and what they do.  If you must (and feel compelled), do a better business bureau search for them.  You will probably be very supprised at what you find.   Keep a level head and don’t let anyone get away with taking your money; especially in these difficult times.