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How do I apply for government grants?

If possible I would like to receive only government grants -- I don't want any loans. I know government grants are out there, but I need to find legitimate ones, not these schemes. Where should I start?
Tim Berry answered February 11, 2009
URL: http://www.entrepreneur.com/answer/221849
1. Recognize that what grants are there are tied to some public good or non-profit goal. Classic examples are developing an underdeveloped area, neighborhood or region; developing some technology believed to offer public good; or addressing some public objective like diversification (hence some grants to minority businesses, for example).

If you can't make a legitimate claim to some public objective, you're probably wasting your time. Those TV commercials we all see are misleading. Get your story straight: Be able to explain in two sentences why you merit public money. Make it about public benefit.

2. If you do think you can argue for some legitimate public interest, start by doing a good search of federal, state and local grants that might apply to you.

Use business.gov and sba.gov for federal, and state -- local are harder to find, but find them. Ask you local chamber of commerce or Small Business Development Center for help. Some bankers are tuned into this too.

3. Most business assistance comes in the form of low-interest loans rather than straight-out grants. I know, you don't want any loans; but this is the real world now. Be realistic.
Tim Berry is the president of Palo Alto Software Inc., based in Eugene, Ore., which produces business planning software. He is also the author of 3 Weeks to Startup and The Plan-As-You-Go Business Plan, published by Entrepreneur Press.