The Truth About Free Government Grants
I need a grant for my business. What is available?
Unfortunately, most grants are for nonprofit organizations, not small businesses. BE VERY CAREFUL of advertisements promoting “free money for your business.” These ads can be very misleading, often suggesting that you can receive a list of many grant sources for a fee of a few hundred dollars.
Frequently this is a list of microloan programs - which you must repay - or grants for nonprofit agencies.
The federal government does offer a few very competitive and targeted grants to companies developing various targeted technologies (often high technology).
This article by the U.S. Small Business Administration provides a bit more detail regarding what is and isn't available.