Is a grant for starting a small business offered by email or social media real?
Legitimate small business grants exist, but they are applied for — they do not arrive unsolicited by email or DM. Unsolicited grant messages are almost always fee fraud.
Last reviewed: 1 August 2026
Explanation
Business grant scams target entrepreneurs and small business owners with unsolicited messages claiming they have been selected for a government or corporate grant. To 'claim' the grant, victims are asked to pay registration fees, legal fees, or insurance — with each payment generating a new fee request. Genuine business grants from governments, enterprise agencies, and foundations require a formal application, publish their criteria publicly, and never ask for payment to receive the grant. If you are looking for genuine small business funding, consult your national business support service, local enterprise partnerships, or your bank's small business advisers — not unsolicited email contacts.
Small business owners are attractive targets because their public footprint — a registered company, a website, social profiles hungry for growth — lets scammers craft messages that feel individually researched. The 'selected for funding' framing flatters exactly the ambition it targets. Notice also what genuine funders never do: they never award money to businesses that did not apply, never communicate solely through messaging apps, and never introduce fees that were absent from the published scheme criteria. If a grant offer cannot point you to a public page describing the programme, its criteria, and its application process, there is no programme.
Common red flags
- Unsolicited email or DM saying you have been selected for a grant
- Fee required to register, process, or release the grant
- Grantor organisation cannot be verified on an official register
- Grant offer expires within days creating urgency
- Amount offered is very large relative to your business size or history
What to do now
- Never pay any fee to claim a grant
- Search for the grantor organisation on an official register
- Use your national business support service for genuine funding guidance
- Report fraudulent grant solicitations to your consumer protection authority
Frequently asked questions
How do I find real small business grants?
Start with your national government's business support portal, local enterprise partnerships, and banks with dedicated small business lending. Grants require applications — they are never awarded unsolicited.
The grant email referenced my actual business name and industry. Is that meaningful?
No. Company registries and business directories are public, so personalising a fraud email with your real details takes seconds. Verify the programme exists on an official government or foundation website before responding.