The truth behind small business grants
Grants to for-profit businesses are virtually nonexistent. Don’t believe promoters who advertise that they will sell you a list of grants on the books for a fee, or Grant Writing Companies that say you qualify for a $300,000.00 grant for your for-profit business and all you have to do is pay them $7,000.00 or $8,000.00, but you only have to pay half up front.
This is a scam that starts out with the Grant finders’ promises of large sums of grant money that would save your business. After you pay the first half of there fee, they contact you with great news of a foundation that wants to give you a large grant. But they will tell you that you need a “Business Plan” that they would write up to satisfy some requirement the foundation has, and it will cost $3,500.00 to have it done. Or they will tell you the foundation needs you to start a non-profit corporation so they can give you the grant for your for-profit company and 5% of the grant has to go into your non-profit company. But it has to be done quickly or you will lose your chance.
They will tell you they can do the non-profit incorporation papers and get you past the IRS filing quickly for $6,500.00.
They can not get you a 501(c)(3) designation any faster than any other business that charges only $1,500.00 can, It usually takes 9 to 12 months and the non-profit, if you can come up with one can not be tied to your for-profit business. Even if they could or did get you grant money for your non-profit, you can not send any to your for-profit company no matter what they tell you. But that’s what you wanted the grant for, your for-profit company, right? It’s not going to happen.
Grants are generally for nonprofit organizations with a 501(c)(3) designations. They are virtually not available in the for-profit sector unless there’s some esoteric local program in your own backyard.
Many foundations provide funding in the form of grants to nonprofit corporations. They usually require that the grant represent a small part of the total funding for an existing organization that gets the majority of funds from individual donations of its members and fund-raising campaigns. Church-sponsored groups receive more grants that anyone else.
If you researched this before you gave way your money to these scams, then you have just saved $6,000.00 to $11,000.00
You might have notices that all of these Grant finder companies are located in the State of Nevada. Look up the Nevada State Attorneys Office on the internet. You will see that it has been closed due to budget restraints. Who are you going to complain too when you find out you have been scammed a year later?
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