You are correct. It is hard for an individual or small business to receive government grants. Grants are very hard to get period. You will see many advertisements stating you can receive a grant as an individuals which isn't true. You must have a business and having a sponsor helps alot especially if your organization is non-profit.

The government has a lot of red tape. If a small business owner can get one or two non-profit sponsors, it could make the process a little bit easier. Having a sponsor does not guarantee that you will receive free money.

There are some companies that offer small business loans (www.commercialhelp.us) with no collateral, no documents but requires at least a 700 credit score, in some cases they will go as low as 680. If your credit score is lower than 680, you can use a credit partner such as a spouse, family member or trusted friend.