Government Grant

A A A

DEFINITION

A financial award given by the federal, state or local government to an eligible grantee. Government grants are not expected to be repaid by the recipient. Grants do not include technical assistance or other forms of financial assistance such as a loan or loan guarantee, an interest rate subsidy, direct appropriation or revenue sharing. There is typically a lengthy application process to qualify and be approved for a government grant. Most recipients are required to provide periodic reports on their grant project's progress.

INVESTOPEDIA EXPLAINS

The federal government provides grants for a wide range of projects and businesses that serve public groups. Over 26 federal agencies administer more than 1,000 grant programs annually to provide funding for the arts, educational institutions, agricultural projects and much more.


RELATED TERMS
  1. Grant-In-Aid

    A transfer of money from the federal government to a state government, local ...
  2. Trade Adjustment Allowance

    A federal government subsidy paid to individuals who have lost work because ...
  3. Accumulated Income Payments - AIP

    Money withdrawn from a Canadian Registered Education Savings Plan (RESP) if ...
  4. Grant

    The issuance of an award, such as a stock option, to key employees under a stock ...
  5. Education IRA

    A savings plan for higher education. Parents and guardians are allowed to make ...
  6. Grantor

    1. A seller of either call or put options who profits from the premium for which ...
  7. Canada Education Savings Grant ...

    A grant from the Government of Canada paid directly into a beneficiary's Registered ...
  8. Registered Education Savings Plan ...

    A savings plan sponsored by the Canadian government that encourages investing ...
  9. Eurasian Economic Union (EEU)

    An economic union created in 2014 by a treaty signed by Russia, Kazakhstan and ...
  10. Direct Bidder

    An entity that purchases Treasury securities at auction for a house account ...
Related Articles
  1. Canadian Grants And Tax Credits Fund ...
    Savings

    Canadian Grants And Tax Credits Fund ...

  2. Paying For College In An Economic Downturn
    Options & Futures

    Paying For College In An Economic Downturn

  3. Demographic Trends And The Implications ...
    Personal Finance

    Demographic Trends And The Implications ...

  4. College Savings Accounts: U.S. Vs. Canada
    Savings

    College Savings Accounts: U.S. Vs. Canada

  5. CEO Savvy And Stock's Success Go Hand ...
    Personal Finance

    CEO Savvy And Stock's Success Go Hand ...

  6. The SEC’s EDGAR System: Use It Fearlessly!
    Investing Basics

    The SEC’s EDGAR System: Use It Fearlessly!

  7. What Is Sallie Mae And How Does It Work?
    Credit & Loans

    What Is Sallie Mae And How Does It Work?

  8. How The IRS Became So Essential (And ...
    Taxes

    How The IRS Became So Essential (And ...

  9. How does gun control policy affect the ...
    Active Trading Fundamentals

    How does gun control policy affect the ...

  10. Socialist Economies: How China, Cuba ...
    Economics

    Socialist Economies: How China, Cuba ...

comments powered by Disqus
Hot Definitions
  1. Cash and Carry Transaction

    A type of transaction in the futures market in which the cash or spot price of a commodity is below the futures contract price. Cash and carry transactions are considered arbitrage transactions.
  2. Amplitude

    The difference in price from the midpoint of a trough to the midpoint of a peak of a security. Amplitude is positive when calculating a bullish retracement (when calculating from trough to peak) and negative when calculating a bearish retracement (when calculating from peak to trough).
  3. Ascending Triangle

    A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs.
  4. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  5. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  6. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
Trading Center