What is a grant?

A grant is financial assistance received by a person or by a by one public entity or administration. The concept of a subsidy implies that the public body that provides the aid will have to pay a financial amount through a transfer.

In addition, due to the meaning of the subsidy, we understand that the beneficiary in this process must allocate the support towards projects and activities that are of public interest and that can increase their own funds. And of course, the recipient is obliged to complete the activity in its entirety.

Typically, the purpose of a grant is to open or evolve businesses, enhance product development, or improve goods and services in the interest of a community. For this reason, each country has its own subsidies law that regulates compliance and monitoring of each concession. However, there are several types of grants that depend directly on the investment or project and issue. For example, a non-refundable grant, in which the financing is completely free and has no costs.

Leave a Comment