Most governments issue grants of various types to help those in need. Grants are financial awards that are given based on certain criteria. You can apply for and avail of these programs if you meet the eligibility requirements. But, there can be confusion surrounding the finer details of these government grants and how and when to avail of them. Read on to find out more about these programs, their types, and their benefits.
What are Government Grants?
Grants are essentially financial assistance received from the government to fund ideas and projects that will help the economy or do good for the general public at large. This money issued in the form of grants comes from federal revenue such as taxes, and the awarding agency could vary depending on the type of grant being issued. Organizations, such as NGOs, research labs, and universities, aside from individuals are also eligible for grants from the federal or state governments. Based on the granting authority, the procedure and documents that need to be submitted might be different.
Grant Types That You Should Know About
There are many minor categories when it comes to government grants. These are disbursed by different agencies as assigned by the government. The delegation of fund distribution tasks is mainly to reduce the time taken to receive these grants, which are available for different purposes, such as education, agriculture, disaster relief, housing, transportation services, and so on. To simplify the understanding of grants and the procedure to apply for them, they are often classified into three main types: Block grants, as issued to the local and state governments, from the federal government, earmark grants, and categorical grants that could be project-based or formula-based. These are for individuals, and they are available for clearly defined purposes.
Benefits of Government Grants
Listed below are some of the benefits of applying for availing of a government grant.
These are not loans, so you do not have to worry about repaying them.
Unlike most sources of funds, grants do not come with hidden fees or interest rates that will make you pay more than the reward you earn.
They help prevent you from entering any sort of debt cycle.
While the paperwork might appear tedious, this can be useful in documenting your progress and recording it legally
There are several types of government grants. With the ever-increasing list of granting agencies, you do not have to worry about finding something accessible. It is also designed to help people in different industries.
How to Avail of Grants
If you fall in the eligibility criteria for a grant, you should aim to accurately follow the procedure specified by the granting agency. There are no shortcuts in government grants. As they are directly funded using taxpayers’ money, the process might appear rather stringent. But, this also ensures that only the truly deserving receive the funds. Compliance checks take some time and this is mainly to verify the background of the request for the particular grant. Some of them are disbursed only in installments. The receiver of the grant will have to abide by the compliance norms for the whole tenure after they receive these funds.
By knowing about government grants you can obtain financial aid at the right time or help someone deserving receive help on time. The key is to approach the right authority and have the essential documents ready. This will ensure that the grant is released to you in a timely manner, provided the other factors are in place.
