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August 2008
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Barack Obama:
From Employee to Capitalist
From Law School to $120,000 in student loan debt, to state employee. How did Barack and his wife, Michelle Obama climb to millionaire status in only a few short years?
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Got Financial Intelligence?
Ask yourself, are you financially educated, financially literate, or financially intelligent? It's not a trick question, Please allow me to school you on the differences between the three.
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True Lies: Federal Government Grants for Small Businesses
“FREE MONEY to start or expand a business is being held for you by the Federal Government,” was posted on the home page of a website I reviewed from a google search on government grants. Not to mention radio ads and late night infomercials that suggest you sign up as a member and pay a fee ranging from $15 - $100 so you can have access to the Federal Government’s $300 billion annual free grant giveaway. Sounds too good to be true? Well of course it is, and don’t think for one minute that it is legit just because it is often publicized on the radio and television.
Normally, those “free business grant companies” will provide you with general instructions, and a few phone numbers or web sites to government agencies. However, most of the links will direct you to the wrong website, and hardly any of the phone numbers work. Many times they provide links to sites that persuade you to pay more money or pay additional member fees to join their website as well.
Most of these websites typically charge between $50 - $100 for access to their  government grant information and as much as $900 for grant training seminars. But in reality, most of these web sites and seminars sell you information you could have discovered yourself with a little research.
If the Federal Government were to offer free small business grants, they would not be a financial secret, and more than likely would be distributed through the Small Business Administration (SBA), a government agency created specifically to offer loans to small businesses, and who in 2007 guaranteed roughly $60 billion in small business loans.
The SBA clearly states on its website that they do not offer grants to start or expand “for profit” small businesses, instead they guarantee loans made by commercial banks through a variety of programs. The grant programs offered by the SBA are normally for non-profit organizations, intermediary lending institutions, and state and local governments.
Most federal grants are awarded to organizations that add a benefit to their community. For example:
· Neighborhood sidewalk construction project
· State-wide program to re-train outsourced workers
· Project to attract new businesses to economically disadvantaged areas
Also, if an organization is awarded a federal grant it will be required to meet strict performance standards, allow government oversight and undergo detailed annual audits.
Although the Federal Government does not offer “for profit”small business grants, some state and local governments may offer grant or tax incentive programs designed to stimulate economic activity or improve city neighborhoods. These grant programs are often administered with very specific eligibility criteria. Check your state’s economic development department for more information.
Although free grant money could really help you start or expand your business, in my opinion (depending on the type of business) it is better to finance it the tried and true way – personal savings. Most entrepreneurs (over 50 percent), use their personal savings for start-up capital. I strongly suggest this path because it develops your organizational skills and more importantly, your financial discipline. If you cannot manage your personal finances, how can you expect to successfully manage the finances of a business?
 Create Wealth, Enjoy Life! 
James "Bird" Guess
President & Founder
TheBlackEconomy.com
staff@theblackeconomy.com
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