What is a Government Grant?
It is an award of funds from the government that does not need to be repaid, does not accrue interest, and has strict guidelines for application.
Grants available from the government usually tie in with its key deliverables such as black economic empowerment, job creation and developing the economy – to name some.
Do you have to repay a Government Grant?
Unlike a loan, a grant is an award of money that is non-repayable – meaning there is no obligation by the receiving parties to repay the money received. While the government is one of the best sources of grants, its selection criteria is strict and paperwork intensive, and the receiving business is obligated to spend the funds in a manner specified by the provider.
Most funds available in South Africa have their own specific requirements, so it’s advisable to research each fund carefully to assess their criteria and up your chances of receiving funding.