When Business Grants Attack: How To Avoid The Scams

In a time when banks and credit unions are denying loan applications like never before, many entrepreneurs and business owners are turning to business grants as a dependable source of financial help. However, just like scholarships and other financial aid opportunities - there are tons of scams to beware of.

Here are the top 5 signs of a business grant scam:

1) No Phone Number Listed
If you are on the web site of an organization or government agency that is offering a business grant opportunity, make sure that there is a working phone number listed. If not, it's probably not a legit opportunity. In addition, there should also be a working email address listed as well.

2) PO Box Address
If the postal address associated with the business grant is a PO Box, this may be a sign of a scam. Be sure to investigate though because some organizations have physical addresses, but want all applications and correspondence to go to a mail box.

3) Fee Required
If a company or organization is asking for your credit card number or requiring you to send a money order with your application, this will almost always be a scam.

Remember though that is very normal for some companies to charge a fee for you to access their grant database. Others will charge a fee to send you a CD-Rom or ebook. This is okay. What is not okay, is you having to pay to apply for an individual business grant opportunity.

4) Poor Web Site Design
If you visit a web site promoting a grant opportunity, and the design looks poor and elementary - it's likely a scam. Organizations and government agencies that give grants away have professional-looking and well-developed web sites.

5) Sounds Too Good To Be True
If an organization is making far-fetched statements about a grant opportunity, it's more than likely not legit. For instance, some grant opportunities may say "We can give you $1 million dollars for your business" or "No application is ever denied." These are claims that indicate a bogus opportunity.

For more tips, advice, and frequently asked questions about business grants, visit www.BusinessGrants.org