Nearly every day a Small Business Development Center (SBDC) office or the Small Business Administration (SBA) gets a call from someone who has responded to an ad that implies there is free money available to start a business. It just isn’t true.

Grants made available through private foundations and government entities for “special purposes”. Typically, these are tied to some community service or not-for-profit mission. Other examples of special purpose grants include:

The Florida Division of Vocational Rehabilitation www.rehabworks.com provides limited grants to enable disabled people to pursue self-employment.

The City of Jacksonville has some programs administered by the Jacksonville Economic Development Commission that provide incentives to businesses that locate in and hire from targeted areas of the city. For more information, check out
http://www.coj.net/Departments/Jacksonville+Economic+Development+Commission/default.htm

The Small Business Innovative Research Grant (SBIR) is designed to fund research & development efforts that support specific initiatives of government agencies such as NASA and the Department of Defense. The R & D is typically related to the development of innovative technology or processes. More information is available at www.sba.gov/sbir/

These programs represent the exception rather than the rule. The information provided by those companies telling you there is “Free Money” is often misleading and rarely specific about where you can find this money. If you are dissatisfied with a company that sold you books or a seminar, contact your local Better Business Bureau and your state’s Attorney General’s office. You can find your closest BBB through the national Web site at www.bbb.org or in your phone book.

If you want to do some checking on your own, visit the following Web sites:
Catalog of Federal Domestic Assistance
Small Business Administration
First Gov

Along with the action by law-enforcement officials in several states, the Federal Trade Commission is cracking down on grant scams. Click on the link to visit their site.