When you need money, you usually apply for a loan. However, in certain cases the person can also apply for a grant.

Grant is a financial assistance to applicants who have a demonstrated financial need. There are different types of grants available: Personal Grants, Education Grants, Housing Assistance Grants, Business Grants, Minority Assistance Grants… This types of grants can help you purchase a new home, get a scholarship, pay for prescription medicine and so on.

The big difference between a grant and a loan is that the individual does not have to pay the amount back. People are allowed to apply for as many grants as they like. Some peopele apply for a scholarhip and to buy a new home at the same time.

But getting a grant is NOT a walk in the park. No one will just give you the money because you filled out a few forms. Unfortunately it's not that easy.

All U.S. citizens and residents are eligible to receive U.S. Federal Government, State Government and Private Foundation-funded grants. The Federal Government and Private Grant Foundations issue billions of dollars in grant money to a variety of groups each year. Grants are awarded to individuals with large and small bank accounts, for an ever-increasing array of purposes.

Remember, grant programs are not loans and don't require a credit checks, collateral, security deposits or co-signers. You can apply even if you have a declared bankruptcy or have bad credit. As a tax payer and U.S. citizen you are entitled to apply for grant money.

You should know, however, that suitable grants are not so easy to find and are usually very competitive. You should put together the very best proposal possible and prove that you are the one that should get the money. And you should plan to spend the time and energy to do it right - or don't do it at all because it will be a waste of time!

In order to get a grant you really do need to have a project in mind and the government has to have a good reason for giving you the money. You could probably get a grant to start a non-profit organization, subsidize your farm, go to school, etc. But you won't get a grant just to build a house or buy a new car.

Contrary to what some people may say - true grants are very difficult to find, especially to start a business. And finding the right grant is only the first step in the process. The second part - properly completing the grant application – is even harder and this is where most grant seekers fail!

When applying for a grant you will need to do lots of research to find the program that will fit your needs best. You should carefully look at the criteria to find out if you are eligible to avoid wasting time. Since grants are limited due to budget constraints, a review panel will first review the merits of each applicant before the money is given. Properly completing the grant application can be quite a task and you should take the time to learn how to write a proposal and make sure you are using the forms that are required.

Is there really such a thing as free money?

Not to insult your intelligence, but to some extent – yes. But, and this is a big BUT, there are lots and lots of limitations and eligibility criteria. You may have to live in a certain state or county; you may have to earn less than a specified amount of money; you may only be able to use the money for a specific purpose. Most people who are looking for these grants won't qualify to receive them. In the end, the government would like to see the results of the project because after all, this money came from the taxpayers.

If you are really serious about applying for goverment grants, you will need to find the right information, locate the right government office, know what programs best suit your needs and know how to apply for them. You can find most information free on the internet. A good way to start would be here:

• Free list of available goverment grants
• Free grant-writing guides

If you don't have the time to do your own research, there are a few programs available on-line that will offer you all the necessary information and advice. For a fee off course. Personally I don't have any experience with them, but if you don't like to do it all on your own, which can be quite time consuming, you may as well give them a try:

• UncleSamsMoney
• DollarGrants

One of the strange things about life is that the poor, who need money the most, are the very ones that never have it. - Finley Peter Dunne

We didn't actually overspend our budget. The allocation simply fell short of our expenditure. - Keith Davis

A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life. - Suze Orman

Financial planning is not insurance and is not just for people nearing retirement.