You’ve heard of loans before: monetary payments issued from one entity to another with the expectation of full repayment. Loans are commonly sought by people who are unable to provide necessary funds upfront when pursuing goals such as operating businesses or seeking higher education. Loans may be issued by anyone from private entities to national governments. Grants are similar in many ways, but also differ considerably.
In this article, we’ll cover what a grant is and do you have to pay back grants?
1. What Is A Grant?
A grant is a non-repayable fund issued by one party to an eligible recipient. The money or items distributed by a given entity are commonly governmental bodies, businesses, or trust funds or foundations. Those receiving grants are often non-profit organizations, academic institutions, companies, or individual people. If you plan to obtain a grant, you will need to engage in the particular style of writing referred to as grant writing. The goal is to successfully complete a required application or other sort of form.