Government Grants and Loans: What Individuals Can Actually Get and How to Apply

How government grants and loans differ

USA.gov describes three kinds of federal help, and mixing them up is the most common reason people get stuck:

• Grants are money that does not need to be repaid, given for a set purpose. Most federal grants go to organizations that run public programs.
• Loans are money you borrow and repay with interest. Federal loans often have lower rates, longer terms, or easier credit rules than private loans.
• Benefits help people with food, health care, housing, and other needs. Like grants, they usually do not need to be repaid.

So when you look for government grants and loans for yourself, the realistic path is usually a benefit for everyday bills, a targeted grant for school or home repairs, or a federal loan for a bigger goal like a business or a home.

Who Grants.gov is really for

Grants.gov is the official site where federal agencies post grant opportunities. It is built for organizations: state and local governments, tribes, schools and universities, nonprofits, and some businesses. The Grants.gov eligibility page explains that individuals are eligible for very few of the listings, and those are usually for things like research fellowships, not personal needs.

That does not mean grant money never reaches people. Much of it does, just indirectly. A state gets a federal grant, then a local agency uses it to pay rent, energy bills, or job training for residents. That is why your local community action agency, housing authority, or 211 is a better place to ask than Grants.gov. Our guide to hardship grants for individuals lists programs that pass money to people this way.

Grants individuals can get

A few federal grants do go straight to individuals for specific purposes:

The Pell Grant usually does not need to be repaid, and you apply for it with the free FAFSA. See our guide to college grants for low-income families. The USDA Section 504 program, set out in 7 CFR 3550 Subpart C, offers repair grants of up to $10,000 to homeowners 62 and older, and the grant must be repaid if the home is sold within 3 years. Our federal home repair grants guide covers it in detail.

Benefits that act like grants

If you need help with everyday costs, benefits are usually what people mean by a "personal grant." They do not need to be repaid, and you apply through your state or a federal agency. Common ones include:

• SNAP for groceries and WIC for pregnant women and young children.
• Medicaid and CHIP for health coverage.
• LIHEAP for heating and cooling bills.
• Housing Choice Vouchers and public housing for rent.
• TANF cash assistance for families with children.
• Unemployment insurance if you lost work through no fault of your own.
• SSI and Social Security disability for people with disabilities.

The free USA.gov benefit finder asks a few questions and shows programs you may qualify for. Dialing 211 connects you with local charities and emergency funds as well. Check these free options first, before thinking about any loan.

Federal loans for individuals

When a grant or benefit will not cover what you need, a federal loan can be a lower-cost way to borrow. USA.gov lists federal loans for students, homebuyers, homeowners making repairs, small business owners, farmers and ranchers, and people recovering from disasters.

Student loans

Federal student loans are made through the Department of Education after you file the FAFSA. They have fixed rates and income-driven repayment options, including the Repayment Assistance Plan that opened July 1, 2026. Use grants and scholarships first, then federal loans, and private loans last.

Home loans and home repair loans

FHA loans are insured by HUD and are made by approved private lenders. They can allow smaller down payments and more flexible credit than many conventional loans. USDA and VA also back home loans for rural buyers and veterans. For repairs, the USDA Section 504 program offers loans of up to $40,000 at 1% interest for 20 years to very-low-income rural homeowners, and older owners can combine a loan and grant up to $50,000. See USA.gov's home buying programs.

Small business loans

The Small Business Administration does not usually lend directly for regular business loans. It guarantees loans made by banks and community lenders. Its 7(a) program goes up to $5 million. Its microloan program provides up to $50,000 through nonprofit intermediaries, and SBA says the average microloan is about $13,000. Many microlenders also offer free business coaching.

Farm loans

The USDA Farm Service Agency lends directly to farmers and ranchers who cannot get enough credit elsewhere. Direct farm ownership loans go up to $600,000, direct operating loans up to $400,000, and operating microloans up to $50,000. Guaranteed loans through commercial lenders go higher, and FSA adjusts that limit each year.

Loan programs side by side

Help after a disaster

After a presidentially declared disaster, FEMA may offer grants for basic needs and repairs, and the SBA offers low-interest disaster loans. These SBA loans are not just for businesses. According to SBA, homeowners may borrow up to $500,000 to repair or replace a primary home, and renters and homeowners may borrow up to $100,000 to replace personal property like clothing, furniture, cars, and appliances. Terms can run up to 30 years. USA.gov's disaster help page also covers disaster food aid (D-SNAP) and disaster unemployment assistance.

Spotting government grant scams

USA.gov warns that promises of "grants" or "free money" from the government are often scams, whether they come by text, email, social media, or ads. Watch for these signs:

• You are told you "qualify" for a grant you never applied for.
• You must pay a fee, taxes, or "processing" costs before you get the money.
• They ask for gift cards, wire transfers, payment apps, or cryptocurrency.
• They want your bank login or Social Security number by phone or text.
• The message uses an official-sounding agency name you cannot find on a .gov site.

If you see one, do not respond. Report it to the FTC at ReportFraud.ftc.gov, and read USA.gov's guide to "free money" scams.

How to apply the right way

1. Name your goal: paying bills, school, a home, a repair, a business, or disaster recovery.
2. Check benefits first with the USA.gov benefit finder and 211.
3. For school, file the FAFSA at studentaid.gov to be considered for Pell Grants and federal loans.
4. For home repairs, contact your USDA Rural Development office or local housing agency.
5. For a business, talk to an SBA resource partner or microlender about a plan and a loan.
6. For a farm, visit your local FSA office.
7. Use only .gov sites or the agency's own lenders, and never pay a fee to apply.

Related guides

• Do you have to pay back Pell Grants?
• Government grants for unemployed individuals
• Grant money for bills and personal use
• Government debt relief program scams

Frequently asked questions

This guide is general information, not financial advice. Loan limits and program rules change. National Relief Program is an independent website and is not affiliated with any government agency or lender.