Government grant programs

Market Place, Personal Finance | Posted by admin
Dec 19 2010

There are over a thousand grant programs that are run by more than twenty-six grant agencies. According to government sources, the US government provides $400 billion worth of grants every day. Some of the more popular grant programs are federal assistance programs, education assistance programs, business assistance programs, research programs, home business assistance and minority assistance programs. There are also many other lesser known grant programs such as low-income assistance, housing assistance programs, federal direct loans, women’s business assistance programs, nursing programs, scholarships and veterans assistance programs.

According to the catalog of federal domestic assistance, there are twenty-one categories under which a person can apply for grants. Some of the well known categories are agriculture, art, business and commerce, community development, consumer protection, disaster prevention and relief, education, employment, labor, and training, energy, environmental quality, food and nutrition and health.

To prepare an effective grant proposal, applicants must present their case in an orderly manner. They must go through all the eligibility criteria related to the grant program being applied for. The basic requirements and procedures depend on the policies of the federal agency that administers the grant. Community support for a cause is also important in the initial as well as subsequent review phases. If there are many letters of support for a certain grant applicant’s case, it can persuade the grantor agency to view the application favorably. There are many websites that help applicants write a good grant proposal and also process the applications on their behalf.
It is a common misconception that government grant programs are sources of free funds. There are many restrictions attached to every government grant and organizations that are awarded grants have to follow these without exception. There is a minimum level of performance specified that has to be achieved by the organization. All expenditures for which the grant funding is utilized are to be accounted for and submitted to the agency. The government performs detailed audits for these organizations, at least once, annually. It is also required that all funds received as part of a grant, are spent and any money that is not used is returned to the Treasury. It is also necessary to successfully complete the project for which the grant was sought, and within the stipulated time. If the organization that was awarded the grant, fails to complete the requirements of the program, there are chances of it being slapped with financial penalties.

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Government grants for small business

Personal Finance | Posted by admin
Dec 19 2010

Entrepreneurs who run small businesses typically operate on a tight budget. Government grants for small businesses are a perfect solution for small business owners to obtain funding for their business. The greatest advantage with receiving a government grant is that it does not require any repayment.

It is important to know of the terms and conditions that apply to Government grants for small businesses. For instance, a business cannot apply for a grant to start a new business or for the expansion of an existing business. There are very strict guidelines regarding the categories as well as the various programs under which a business is eligible for grants. Grants are generally provided for research or development needs of a business. Therefore, it is easier for technology based or pharmaceutical based businesses to get a grant as compared to a retail or service based business.

According to the catalog of federal domestic assistance, there are twenty-one categories under which a person can apply for grants. These include agriculture, art, business and commerce, community development, consumer protection, disaster prevention and relief, education, employment, labor, and training and energy. The other categories of grants are environmental quality, food and nutrition, health, housing, humanities, information and statistics, law, justice, and legal service, natural resources, regional development, science and technology, social services and income security and transportation.

The business and commerce category receives the most number of applications. Many small businesses apply for government grants to fund their research and development programs. Often, small businesses do not have sufficient capital to spare from their limited resources, to conduct these programs.

A small business can apply for a grant by applying online through the US government’s official website for grants. There are also many other private agencies that offer grant programs. A small business owner can choose from the many grant options available today. It is important to remember that the number of applicants under each category of grants is very high and it is quite possible that many grant applications would not be approved. Therefore, an organization has to prepare well prior to applying for the grant as their credibility is extensively checked as a part of the screening process for government grants.

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National Education Loans

Personal Finance | Posted by admin
Nov 19 2010

Today, most of the students and their parents realize that education has become very expensive. Regardless of the kind of education a student is opting for, whether it is at a private high school, a college, university, or an overseas school, tuition costs when clubbed with costs of books and living can become quite significant. National education loans are a good way to finance the student’s education needs. There are special distance education loans, need-based loans, college loans, government-based loans, and private education loans available for students.

Educational loans are like any other kind of debt where the borrower takes a specific amount of money from a lender for a specific amount of time. This money has to be repaid with a particular timeframe with interest. However, there are quite a few differences between education loans and other loans. As students have not had time to build up their credit rating, the applications for student loans are simpler and streamlined. The eligibility criteria are also not very stringent. Many education loans are designed to allow students to pay back their debts after graduating. Often, the repayment starts only after six months of completing the education to give time to the students to find and settle down in a job. This allows the students to focus on their studies than on their loans.

There are a number of loans to suit the specific needs of students with specific money issues. There are several ways to apply for educational loans. Many educational institutes offer their own loans to students. If they do not offer such loans themselves, they usually have a financial aid office to guide the students regarding their various educational needs and the available resources.

Many students are not sure if they must opt for education loans for their education. The idea of taking out a debt of thousands of dollars and not being to pay can seem intimidating to students. However, an education loan can help students train for a good, high paying job that can make their suture secure and successful.

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Treasury Bonds

Stocks & Bonds | Posted by admin
Nov 19 2010

Bonds are defined as tradable instruments that are debt securities, which a borrower issues in exchange for capital. They have an option to pay either fixed or floating interest that is called the coupon. The price of bonds depend upon the interest rates, which means that bond prices rise as the interest rates go down and vice versa.

There is no certificate given to the holder when he or she buys a Treasury bill, note or bond. Instead, the investment made is tracked through the book-entry method of keeping financial records that creates a receipt and periodic statements.

There is quite a bit of difference between Treasury bills, notes and bonds that investors need to be aware of. Treasury bills are specified as short-term financial instruments that mature within four, thirteen, and twenty six weeks. These bills function in the same way as money market funds and savings accounts. Investors can raise money from them quickly for an emergency or other purposes.

Treasury notes are financial investment instruments with maturity level of two, five and ten years, making it a form of intermediate to long-term investment. They are usually bought to fulfill specific upcoming expenses in the future, such as college tuition, or as a means to produce cash for retirement. The interest on these treasury notes is paid semi-annually.

Treasury bonds are defined as those financial instruments that are specifically long-term investments and usually cover terms of more than ten years. However, they are currently issued only as securities that mature in thirty years. The interest is paid for these Treasury bonds too, semi-annually.

STRIPS, inflation-indexed securities and U.S. Savings Bonds are three other forms of Treasury securities available to individual investors.

Generally brokers do not charge any commission for trading Treasury securities, as they earn their profit by buying bonds at a certain price and selling them at a little higher price.

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Taxable Municipal Bonds

Stocks & Bonds | Posted by admin
Oct 09 2010

Municipal bonds are issued by states, cities, counties and other government entities to raise money to build schools, highways, hospitals and other projects for public use. Earlier all municipals were tax-free, but these days the interest earned from certain municipal bonds could be taxable on a federal level while being exempted from state or local taxes.

Taxable municipal bonds are needed, as the federal government does not subsidize the financing of activities that do not offer any significant benefit to the public in general. There are four types of bond issues that are federally taxable, these are investor-led housing schemes, local sports facilities, refunding of a refunded issue and borrowing to replenish a municipality’s under-funded pension plan. Taxable municipal bonds are popular, as they offer more returns as compared to those of other taxable sectors, such as corporates or agencies. The taxable municipal market has seen tremendous growth. Over $90 billion were issued in the last five years in taxable municipal bonds.

The prices of the most widely traded municipal securities are listed in financial newspapers and business pages of major dailies. Further, the Internet also provides the same information on different investor web sites. The price quotes are available at a municipal securities broker-dealer who may be full-service, discount or online.

Many banks and securities, which are registered to buy and sell municipal securities, can buy municipal securities notes or bonds from the holders. Municipal bonds are not sold in an organized exchange but in the over-the-counter market. If an investor sells these bonds before they mature, he or she will get the current market price, which may be more or less than the actual price.

The trade of municipal securities among investors and dealers is much like other debt commodities. Dealers trade these municipal securities at a net price, which consist of their own spread, or profit, on the transaction.

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