Government Grant

What is a 'Government Grant'

A government grant is 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.

BREAKING DOWN 'Government Grant'

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, ...
  2. Options Backdating

    The process of granting an option that is dated prior to the ...
  3. Block Grant

    Money that is awarded, or granted, by a national government to ...
  4. Grant

    The issuance of an award, such as a stock option, to key employees ...
  5. Federal Supplemental Educational ...

    A program that provides funds for undergraduate students who ...
  6. Pell Grant

    A program that awards money to eligible undergraduate and, in ...
Related Articles
  1. Entrepreneurship & Small Business

    Government Grants for Women-Owned Businesses

    Explore options for financial grants as a female business owner, and discover helpful resources for alternate ways of funding a business, including loans.
  2. Managing Wealth

    Take Advantage of Small Business Grants for Women

    Discover five grant options that specifically target women-owned businesses, and learn how each of these grants can be of benefit to small business owners.
  3. Entrepreneurship & Small Business

    4 Government Grants for Small Business Owners

    Discover common resources available to and used by small business owners and entrepreneurs in funding initiatives through government grants.
  4. Markets

    A Quick Guide to How FAFSA Loans Work

    If you’re headed to college and want to know how to apply for financial aid, this is where you need to start.
  5. Personal Finance

    College Loans: Private vs. Federal

    Not all student loans are the same. Know what you're getting into before signing on the dotted line.
  6. Markets

    All About Government Loans

    There are many reasons to seek a government loan rather than one from a private lender. Government loans typically have low interest rates and offer fixed or subsidized options, as well as deferred ...
  7. Markets

    What's a Subsidy?

    A subsidy is a benefit given to an individual, business or institution, typically by the government. Subsidies are given to promote a social good or an economic policy. The government usually ...
  8. Entrepreneurship & Small Business

    Tools for Finding the Right Loan or Grant for Your Small Business

    Learn more about some of the best tools, resources and organizations available to connect small business owners with business funding opportunities.
  9. Markets

    Getting Government Loans For Your Small Business

    Would a government loan provide a more cost-effective way to finance your business? See whether your company qualifies for a government loan.
  10. Markets

    What are Government Securities?

    Government securities are debt instruments that governments issue to raise capital.
RELATED FAQS
  1. Can you describe the types of equity and what is considered the best equity to get?

    I was offered a c-level position with equity.  ... Read Answer >>
  2. Should I apply for student loans if I haven't finished applying for scholarships ...

    Apply to a variety of financial help sources by submitting a Free Application for Federal Student Aid form, which will be ... Read Answer >>
  3. What are the most common sources of funds given in a financial aid award letter?

    Read this article to learn about the four most common sources of funding given in a financial aid award letter sent to a ... Read Answer >>
  4. What is options backdating?

    Options backdating occurs when companies grant options to their executives that correspond to a day where there was a significantly ... Read Answer >>
  5. Who is eligible to take out federal student loans?

    Fill out the Free Application for Federal Student Aid every year to determine eligibility for federal aid, including student ... Read Answer >>
  6. How do government subsidies affect the profitability of the airline industry?

    Read about the history of government subsidies to American airline companies since 1918, and why it benefits large companies ... Read Answer >>
Hot Definitions
  1. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  2. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  3. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  4. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  5. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  6. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
Trading Center