Read this page and explore the application forms. The small business administration clarifies the federal government's approach to grant financing. All grants have a great deal of reporting and compliance requirements. What does this mean to someone seeking a grant? There will be a great deal of paperwork associated with obtaining the grant. This also means there will be follow-up paperwork, providing insight on the use of the grant money. These requirements are in place because taxpayer dollars fund government grants. The federal government provides resources for individual states to provide more specialized assistance to individuals within their respective states. Each state has its own small business division, and the title of the division will vary by state.