The very small business person is often the least educated regarding
how to apply for, submit or obtain a grant. A grant is frequently
the best type of financing since it is a gift that doesn’t have to
be repaid, as does a loan. It doesn’t take much marketing to sell a
very small business person on applying for a guaranteed grant to
help with a business expansion or upgrade.
Unfortunately, scam artists pray on these vulnerable small business
people by seeming to promise the guarantee of securing a large
How does it work?
A small business wants to expand
but is unable to borrow enough money to do so.
They hear about a grant assistance
company or are contacted directly by one.
They pay an up-front fee, usually
several thousand dollars, to the grant assistance company and
are verbally promised a large-dollar grant that doesn’t have to
Shortly after signing the grant
assistance agreement, the business person is advised that he’ll
be much more successful in obtaining a grant if he restructures
his business from a for-profit entity to a non-profit entity for
an additional up-front fee, again usually several thousand
The small business person soon
finds out that there is no guaranteed grant coming his way. His
paperwork has merely been prepared and forwarded to various
How can you protect yourself?
Get everything in writing.
Do not sign a contract without
reading it first.
Check to see if the company is
licensed with the appropriate local or state agency.
Check the company out with the
Better Business Bureau.
Google the company’s name for
Be cautious if you are asked to
provide more money for services you have not yet received.
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Source: Nevada Consumer Affairs Division and