Offers everywhere produce believers

WASHINGTON If youre a small business owner, youve probably received a phone call, or many phone calls, offering free government money or grants.

The United Motorcoach Association says it regularly receives inquiries from members asking about the legitimacy of such calls. The association also fields calls from members seeking information about government grants associated with cash flow, or the lack of it.

Similarly, the U.S. Small Business Administration reports its not uncommon for potential business owners to call or visit the SBA asking for grants or free money to start a business.

Despite the widely held maxim that "theres no free lunch," there continues to be an abundance of people or organizations offering free money and a profusion of people who continue to think there may really be free money because the offers are so prevalent and the government reputation for profligate spending is so widespread.

Late-night infomercials, obscure publications and telemarketers tout how trouble-free it is to get your share of all this "free money."

In almost all cases, however, the information is incorrect and misleading.

In other cases, its close to a scam, so be leery of anyone who asks for money up front to get additional information that leads to free money, warns the SBA.

The Small Business Administration and most other funding organizations whether governmental or private -- do not provide grants or "free money" for starting or developing a small business.

Although there are certain types of grants available, these are generally specialized funding programS targeted towards specific groups, organizations or activities.

For example, motorcoach operators have won grants in recent years to help with purchases of security equipment and systems or to install wheelchair lifts. Both of these grant programs are highly targeted, have onerous requirements, and generally require a not-insignificant investment by the company receiving the money.

Grants the SBA provides are generally awarded to existing organizations to provide specific technical assistance to small business owners. These grants may be targeted to nonprofits or educational institutions.

For instance, the SBA has funded grants and contracts to help small businesses develop and maintain a drug-free workplace. These awards went to nonprofit organizations and SBA Small Business Development Centers that have demonstrated the ability to assist in this effort.

SBA also facilitates a program in which federal agencies award research and development grants to high-technology small businesses.

In a nutshell, the federal government does not give grants for starting or expanding small businesses. However, the government does provide free help in planning how to start or improve a business, and in securing low-interest SBA-backed small business loans.

Some states offer limited small business grants to individuals. You should check with the local economic development agency in your state to see if grants are available.

So, what can you get for free? The SBA and many local organizations offer an abundance of:

Free small business advice

Free help writing a business plan,

Free access to online business training and courses

For more information, go to www.sba.gov.