The Bismarck Mandan Development Association and City of Mandan Business Development Office have received reports from businesses targeted by telephone solicitors who indicate the business may qualify for thousands of dollars in grants to assist with inventory purchases, equipment leases, advertising or other economic stimulus purposes. The pitch includes request for payment upfront with a promise that the money will be refunded if the business does not receive a grant within 12 months.
This pitch fits the "Too Good to Be True," model, according to the N.D. Attorney General's Consumer Protection and Antitrust Division. Red flags include creating a false sense of urgency with artificial deadlines for response and requests for money up front. Other red flags include "homemade" websites (hosted by do-it-yourself, quick services) and recently established businesses. While the company may offer a money-back guarantee, that type of guarantee is often hard to act upon, because the guarantor will often blame the business applicant for not following through with information correctly or completely.
Grants for businesses are not as easy to obtain as purported by the solicitors. Grants are generally not awarded to businesses or individuals, but rather to state or local government entities or non-profit organizations that, in turn, provide assistance to businesses and individuals.
Business owners are urged to consider such offers for grant-writing services with caution. Contact the N.D. Attorney General's Consumer Protection and Antitrust Division at 328-3404 and check out the company on the Better Business Bureau website at www.bbb.org.
Copyright 2009 Bismarck-Mandan Chamber of Commerce
1640 Burnt Boat Drive * PO Box 1675
Bismarck, ND 58502-1675 info@bismarckmandan.com
701.223.5660
