A Missouri consumer writes:

Does the government really give away grants? I am a small business owner, in very much need of a grant for investing in my store. I have been contacted and they said I qualify for 150,000 in grant money. They also said that it was $497 for processing fees. I believe this is a scam, but I want to know if the government does give grants and where I go to apply for one, if there is such a thing.

You are correct, this is scam, in this case asking for $497 in cash up front. There will be no grant.

In other scams we've warned about, the scammer may ask for your bank account or Social Security number. The government does offer grants, but not unsolicited, which is what happened in your case. In this scam, people who never applied for grants are contacted and told they have qualified and there are no strings attached.

The government has a procedure for applying for grants. But you have to go out and find them, apply for them, qualify, and meet lots of obligations.