Farmers and small business people should be wary of literature that is being distributed in rural areas, promoting government grants and loans.

That's the word from Souris-Moose Mountain MP Roy Bailey, who says the brochure has the appearance of a government publication, but is not.

It is, in fact, an advertisement for a pricey book that lists loans and grants offered by the feds.

"The book costs $99.73 for a service an MP's office or any government department would offer for free," said Bailey.

The MP says the advertisement could give people a false sense of hope, since "government grants and loans are very limited and are tailored for very specific programs and regions."

For example, there are grants available for areas of high unemployment, for hiring youth, creating aboriginal employment or expanding tourism. But farmers and small business people rarely qualify for grants.

While some government-sponsored, low interest loans are offered, they can be hard to get, Bailey adds.

The same literature was distributed last spring, and many disappointed constituents called Bailey's office to complain.

"I observed last spring many individuals paid the fee for the book, but failed to apply for a grant or request a refund from the company within the time limit specified. There were many dissatisfied customers who contacted me last year. I would like to prevent the same thing from happening this year," he said.