Types of Government Grants
Government grants provide financial assistance to individuals and business owners through the federal government. These government grants can be used for personal needs such as buying or repairing houses, paying utility bills, making a mortgage payment, paying off debts, paying for childcare and paying for general living expenses. For business individuals the government grant can be used to start a business or expand an existing business. For individuals with educational goals a government grant can help pay for studies from the preschool level up to higher education abroad.
Five Main Grants
When it comes to government grants there are five main types which can be awarded to U.S. Citizens from the age of eighteen up. The first of these is projects grant which is the most common award given out on a competitive basis. Most of these grants are used for scientific research, educational goals, social services, technological development, healthcare or arts related projects.
Second is the formula grant which is used for families raising children and those who need an employment training program. The third option is a categorical grant which is used for a very narrow defined purpose such as urban forestry assistance, hazard abatement and other specific projects.
The fourth area is the block grant which groups the categorical grants into one specific program such as a mental health services block grant. Lastly there is an earmark grant which is a very specialized form of government grant that is not given out on a competitive basis. Since these government grants involve political lobbyists there has been a lot of debate about the security of these grants.
Categories
The twenty-six federal agencies offer a total of over nine hundred government grant programs. There are twenty-one categories of government grants offered including business and commerce, education, food and nutrition, health, regional development, science and technology and others.
Requirements
Before you can apply for a government grant you need to make sure you are eligible. According to U.S. law you must over the age of eighteen and be either a U.S. citizen or a legal resident alien in order to be able to apply for government grants.
Applying for Government Grants
If you are applying for a government grant for the social services then you should know they are typically only awarded for one year. After a year if your performance is deemed satisfactory then the grant can be renewed for up to a period of three years. You will be denied a renewal of the grant if you don’t meet the necessary reporting deadlines. You should also know that sometimes getting a government grant requires political influence so you may need to get support from an elected official.
In order to have a better chance to get approved for a government grant you need to know the complete guidelines and the specifically defined criteria for the application process. It can be beneficial to attend a workshop that is conducted by federal agencies in order to better understand this process and give you a better chance at getting approved for your government grant.