When it comes to USA grant applications’ offers, how can you identify whether they are genuine or scams? In this case, it’s a good idea to keep this post handy.

The federal government will notify you through phone calls, email, or letters that you have been chosen as the winner of a free U.S. award. All you have to do to collect your money is pay a nominal processing fee. Is this a scam or a legitimate business? In this case, it’s a good idea to keep these adages in mind:

  • There is no such thing as a free lunch, and if something seems too good to be true, it most likely is. 
  • The US Department of Justice (DOJ) and other federal agencies have reported increasing fraudulent government grant schemes in recent years throughout the country.

Who is responsible for distributing legitimate grants?

At the state and local levels, there are several financial assistance programs designed to stimulate the founding of new enterprises and the creation of new employment. As a result, financial instruments like loans, stock investments, and even grants may be used.

  • Firstly, for-profit companies may take advantage of a few grant programs from the federal government and state and municipal ones that support economic growth. 

With this initiative, firms may work with government agencies to develop new technologies that might be commercialized in areas of interest.

Here are five ways to know whether you’re the victim of a scam:

  • Have you applied for any grants? No one simply shows up at your door with a check; you have to fill out an application before you get anything. It is almost probably a ruse if you are paid for something about which you have no previous knowledge.
  • Are there any fees or costs involved? Grant applications at the federal, state and municipal levels are generally free since public funds are utilized to support them. To apply for the award or learn more about it, there is a good chance that you may be charged for doing so. Most of the money scammers get through the application fees they demand from their victims.
  • Was it meant for business or private use? In the United States, the money given to a company or nonprofit organization is intended only for that organization’s benefit. To be genuine, an award must not be used to pay for schooling, living, or other personal expenses.
  • Who or what does the issuer purport to represent? However suitable the deal may sound, if they say they’re from the Federal Grants Administration, this is a scam.
  • If yes, were you asked to give proof of identity (personal or company) and a link to your bank account? Ask the caller to provide you with a formal proposal if requested for this information. There is a good chance you won’t hear from them ever again.

Questions to Ask When Determining whether a Grant Is Legitimate (OR) You’ve Won a Legitimate Grant. Now What?

Before receiving a grant from the United States government, be sure you understand its purpose and limitations.

  • What precisely can you do with the money? The bulk of grants does not come in the form of unrestricted funds that may be used in any way the receiving company sees fit. They are given for specific reasons that contribute to the ultimate goal of the donor. Before receiving a contribution, be sure your purpose and the grantor’s mission are aligned.
  • Is it possible to utilize some of the grant money to pay for ‘overhead’ costs? People and groups may apply for grants to complete projects and activities. Before receiving the grant money, be sure you understand how much it may be spent for administrative support.
  • What is the due date for the payments? To avoid waiting for the money to come in, many grants are paid out in advance. A grantee may be required to repay some or all of their funds if they fail to meet certain deadlines or incur specific expenditures.


A lot of the time, grants that aren’t sought are fraudulent. Make careful to properly review the terms and conditions of any USA grant applications you get to ensure that they align with your company’s long-term goals. If you have any queries or issues, don’t hesitate to contact us.