Stimulus Grant Scams
Tough economic times make fertile breeding ground for scammers and this recession is no different.
Since the $787 billion stimulus bill became law in February, dozens of websites have popped up offering advice for a fee on how to get government grants on everything from small business initiatives to paying off student loan debt.
The BBB has received hundreds of complaints about sites like federalgrantsolutions.com, which billed consumers $70 a month on their credit cards for info they thought was free.
First, know that the government doesn’t hand out grants for paying off personal debt and grants are usually given to non-profits.
If you want to know how to apply for a government grant for a non-profit or small business initiative, that info is readily available for free at grants.gov and sba.gov.
Photo by svilen001.
GoEverywhere Team on March 25th, 2009 9:20 am
Amazing how this article shows the darker side of this recession, after I just finished reading another article about businesses stepping in to give a helping hand to those out of a job in these tough times. For example: A dry cleaner with a sign up in the window offering free dry cleaning for those with a scheduled interview. May not be altruistic (they probably intend to generate word-of-mouth advertising and long-term customers), but it is honest and legit nonetheless.
Unlike what you are talking about in this article. Why does there always have to be a dark side?
Jaclyn on March 27th, 2009 12:33 pm
That is so true how many people and so called businesses claim they can get you your own part of the stimulus package or free grant money! i get a dozen emails everyday from scammers offering me grant money or part of the stimulus package. i realize even those people need to find new way’s in this economy of making money and supporting themselves…but come on…can’t they find something that is honest, legitimate and doesn’t further more hurt our economy and the people they target?
Jamie Nast on March 31st, 2009 12:13 pm
Does anyone know if National Growth Funding, Inc. is a scam when it comes to providing grants. They want $2,950 upfront for a $500,000 grant. You pay an additional $2,950 once you’ve received half of your grant. Sounds fishy, but would like someone else’s insight. Their website is http://ngf-sanantonio.com and they have no address on the website.
Brian Maxey on April 1st, 2009 10:45 pm
Hi Jaime…my name is Brian Maxey. I am the Director of Corporate Services for National Growth Funding, Inc. and I wanted to answer your questions for you.
First, not having our addresses on the site was simply an error and our web-designers were immediately contacted after reading your post; so I actually owe you a Thank You for bringing it up. If you would like to check us out, our 2 locations are:
3463 Magic Dr. Suite 329
San Antonio, TX 78229
and…
601 Pennsylvania Ave. NW
South Building Suite 900
Washington, District of Columbia 20004
Second, it is very insulting to call us a scam simply because you do not understand WHY we do business the way we do. Hopefully I can explain a little clearer for you. If it were possible to use our expertise on the Grant Obtaining Process to simply collect all of the available money for ourselves, we would have no reason to offer our services to the public. However, being that is impossible, we do what every business in America is designed to do. We simply use our knowledge of how to contact, apply, follow up and obtain grant funding from Major Corporations and Private Foundations in order to provide you, the client, with a service you would otherwise not be able to do on your own (similar to taking your taxes to an Accountant every year). For that work, we charge a retainer that is affordable to you and, upon receiving funding, profitable for us.
So this process is not fishy, it is actually the most common way to do business; it just seams too good to be true if you are unaware of how Grants work and what is available out there.
Now, the reason it seems too good to be true is because you look at it as pay the Retainer and receive 100 times that amount in Grant Money. Well, it’s not quite that easy. There is absolutely NO GUARANTEE that you will receive the funding from the Foundations. To use the Tax analogy again, it is similar to paying an Accountant to do your Taxes but not having any guarantee that they will get you any money back. The only thing we can promise is that we will conduct the most efficient process of finding Foundations and provide the absolute best method of presenting your company to those Foundations so that you have the best possible shot at getting funded (something that is nearly impossible on your own).
So in conclusion Jamie, it boils down to whether or not you feel comfortable with the fact that we are experts of our industry, we do not only what we say but well beyond that, and our track record speaks for itself. We have never once received a complaint from anyone anywhere, we have an A Rating with the Greater San Antonio BBB, we are active members of numerous Local and National Chambers of Commerce, we have a great standing with Dun & Bradstreet, etc.
Please speak to one of our Specialists, or even myself, and get the full understanding of what we do. Not just Professional Grant Writing, but all of the services we provide. I personally work from our Las Vegas location, which we have solely for the Tax Breaks (as all large companies do) and the address is:
375 N. Stephanie St.
Building 2011
Henderson, NV 89014
I truly hope you speak with us further; though I understand your need to find out what you can, by posting this about us, we are now listed in the #2 spot on Google as a scam!! That is unfair to us since we have never done anything except work hard for our clients. Thanks Jaime and good luck!
Kelly Max on June 17th, 2009 5:11 am
Hello,
I would like to tell everyone that these people asked me to pay for getting a grant. I thought grants were free. I have looked up these names that are above and can not find any references of them, not even the buildings they say they are in. I looked them up on all maps yahoo, google maps and there is nothing on them. It says they are accredited by the B.B.B but I guess anyone can with the right amount of money. The only address that shows is the one in san antonio. I really think that something is very wrong here. They also have other affiliates, which i think are the same people and there web sites in my opinion are not very professional. No i will not let you screw me out of my hard earned money.
Kelly Max on June 17th, 2009 5:19 am
Hello,
Comment posted earlier I think it makes a good point.
Is there any truth to the myth that there are government grants for small businesses?
I get calls from people that have paid to attend a seminar. The then pay someone to prepare a grant proposal for them and submit the proposals and wait. No one I have spoken to has been able to say that they got money to start a small business.
I have not been able to find anything that even comes close to free money or grants. Sure there are web sites that will sell you a list or write a grant proposal. But I have found no one that has actually got any money.
Therefore I lay down the challenge to anyone who can show me a legitimate government grant program for starting a small business.
Kelly Max on June 17th, 2009 5:21 am
Where is the photo of Brian Maxey ?
Teri on July 1st, 2009 5:15 pm
My husband and I also received a package from National Growth Funding. It is a very fishy company for a lot of reasons. First, on their website and paperwork they don’t tell you what percentage of small businesses actually have received any type of grant money. Second, look at their testimonials, there is not one small business listed among them. The Alanta Falcons and Chamber of Commerce are not small businesses. Third, we are a small business that is accredited by the B.B.B. You pay money to be accredited by them. Fourth, why do they need money upfront. I get what the director is saying, but if you can insure that we will receive a grant then why aren’t they able to take it from the grant money? For a small business grant, wouldn’t it be a business expense to pay the company that wrote the grant for you? They claim to take out the second payment out of the grant, so why don’t they take the whole lump sum from the grant? Either one, there is no grant, which means they are a scam, or second their average percentage of actually receiving grants for small businesses is not very good, and that’s why they want paid upfront. The director compared it to a tax consultant. Bad example. Most tax consultants take their fees from your refund or bill you for their services. If they are a real business and have a high success rate, then they would be able to be paid from the grants received.
We are very disappointed with this kind of scam. Small business owners work very hard to keep alive with our terrible economy. For someone to try this type of scam on us is very disappointing. We also do not know of any small business that has received grant money. On their website they sent the same message, the fact that none of their testimonials are small businesses.
Dave Langley on July 3rd, 2009 6:25 am
I asked for references from National Growth Funding but they referred me to their website for testimonials. Any company that can not offer a potential client a reference seems fishy.
Paul Dietmann on July 3rd, 2009 7:09 am
Folks,
In general, there are no grants available for people simply because their businesses are in financial trouble. Grants are typically awarded for creative ideas that need further development or that offer some public benefit.
If you have a grant-worthy idea and need help writing an application, there are reputable grant writers in every state. You don’t need to use a fly-by-night company that only appears to do business over the phone or web. A good grant writer will help you assess your idea before writing the application; they want to build a successful track record and will only write if there is a high likelihood of success.
To get connected with a reputable grant writer, contact your state’s Department of Commerce (or similar agency), small business development center, Service Corps of Retired Executives (SCORE), or other group that has knowledge and connections to help you.
Paul Dietmann
WI Department of Agriculture, Trade and Consumer Protection
Angela P. on July 22nd, 2009 11:12 am
I have been a client with NGF for two years. The first 6 months I did not recieve a grant but the following six month period I did! What you have to understand is that this is a service with no guarantee! You are a business owner that is highering a company to research,letter write,grant writing,application filing, and negotiating with funders for you so that you can actually get funded. This is a great investment to go after funds every year that is Free and that you dont have to pay back. But you have to spend money for someone to do it for you if you dont know how or have the time. So relax on the pointing fingers and understand what they do for you!!!! I know that every time I higher them that I might not get anything but at least I can say that I applied and will try again the following year!!!!
Darlene Q. on August 4th, 2009 2:31 pm
Angela P., what kind of business do you have??
Scott F. on August 4th, 2009 9:40 pm
Hello Darlene Q. Have you been talking with NGF too? I am thinking it is a scam. Anyone else have any experiences good or bad with this company?
Shirley on August 13th, 2009 1:40 pm
USE CAUTION when doing business with Brian Maxey
I recommend you checking this website: sos.state.nv.us and doing a Business Entity Search; Registered Agent: Brian Maxey. 34 Registered Businesses, some Active, some Default and seveal Revoked.
Dick B. on October 11th, 2009 4:53 am
Thanx, They almost got me. We urgently need the grants talked about in my conversation with NGF and that makes it easier to be swayed. I have 20 employees that I’m trying to keep in a job and the guy at NGF seemed to think it would be no problem to keep them working. It’s back to “If it sounds to good to be true, It probably is.” Thanx Again!!
Kristy on October 16th, 2009 8:27 am
I just became a client two months ago! Everything is fine my profile was done, I got my research back and have spoken to one of the best grant writers. The grant writer was very helpful and told me exactly what is going to happen when my grant is approved. I have recived some feed back from a funder that i have been in direct contact with since they are requesting more info. I know I made the right choice. Becareful with the other companys who try to be like NGF!!
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