Ask an Expert: No, you can't get something for nothing

— -- Q: I am starting a green business but lack sufficient start-up capital. Are there federal grants for such a business, and if so are they realistic or even plausible? — Rachael

A: I would have to say, I get more variations on this question than any other: "Where the heck can I get some of this free government start-up money?"

I'm not exactly sure where this urban myth comes from, this idea that there are government agencies out there just waiting to give out free money to start a business.

I suspect that the main culprit is Matthew Lesko. You know, the wacky guy on those infomercials with the question-mark suit who is always talking about free government grants and programs.

Do they really exist? Are there free federal grant dollars available to fund a business start-up? Let's find out.

Lesko received his MBA from American University and his company, Information USA, has published many books on the subject of "free" government programs over the past few decades. His books generally point out programs that people may or may not know about which offer some sort of assistance — everything from Medicare and Medicaid to SBA loans, energy assistance, and farm subsidies.

But actual free money turns out to be a pretty rare thing.

Indeed, the state of New York's Consumer Protection Board issued a report in 2004 stating that some of Lesko's claims of free money are exaggerated in relation to his book, Free Money to Pay Your Bills.

This is not to say that grants are not available on the federal level. They are. Indeed, the federal budget is chock-full of grants for such things as:

• Scientific research

• Educational endeavors

• Defense services and products.

Moreover, there are plenty of programs that help minority, veteran, women, and disabled business owners, but again, none that I could find offer actual, free start-up capital for individuals. Most of this assistance is technical and advisory in nature.

And, when the federal government does offer grant money to promote small business, it almost exclusively goes to state and local governments. According to the smart folks at About.com, "By far, most government grants are applied for and awarded to other federal agencies, states, cities, colleges and universities, and research organizations."