Contrary to what people may believe, a government grant is very different than a loan. Government grants are awarded to people based on certain criteria and need not be paid back. Loans, on the other hand, are given to people with an expectation of being paid back with an additional charge of interest.
Because a grant doesn’t have to be paid back, it is essentially better than a loan, especially for an individual or a small business. The application for a grant involves writing a proposal and filling out a couple of forms, credit is not a factor. To apply for a loan, however, you fill out forms, the potential lender checks your credit, and in today’s economy, you are lucky to be approved.
Comments on this entry are closed.