Fake government grants:
For a start-up business keen to secure funding, being approached by a government agency offering a grant would seem too good to be true. And it probably is.  There is no pot load of money available to hand out to small businesses directly from the government.  There are government grants however, they do not go directly to small business owners looking for free money to finance their business.  These grants usually come from the federal government to States or non-profit organizations.  The States may in turn use that money to give a grant to a private company (usually a non-profit organization) to provide a specific service.  For example, they may give money to a company to provide jobs training to people in the state.  They may give money to Universities to conduct a specific type of research.

Protect Your business:
If you are looking to finance your business do it the old fashion way.  Finance your business by using your own money, borrow from friends & family or get financing from a financial institution.