 TITLE: What Is the Difference Between a Grant and a Business Loan? CONTENT: Business grants come in all shapes and sizes, but they all have a couple of things in common. First, you don't have to repay the money from a grant. Second, the purpose of a grant is to help the granting organization achieve a goal. Federal grants, for instance, could be issued to provide public services, stimulate the economy, support critical recovery initiatives or facilitate innovative research. Meanwhile, Visa offers grants of up to $50,000 for products that deliver innovative payment and commerce solutions to consumers and businesses.\nGrants can come from federal, state and local governments; nonprofit and community organizations; and for-profit companies. Many grants are designed to help business owners who have historically had trouble getting financing from banks and investors, such as women, military veterans and members of minority groups.\nCompetition for grants is fierce. You may see ads touting free grants to start a business, but most grants are for existing businesses, not startups. Having business experience gives the granting organization confidence you can use the grant responsibly to carry out the grant's intended goal.\nTo get a business grant, you'll first have to find a grant you are qualified for and complete the application process. Grant qualification requirements can be very strict, but some have more general criteria. The complexity of grant applications can also vary greatly: Some require lots of documentation; others are simple, like the one-page application for WomensNet grants, which award $2,000 to $25,000 to women entrepreneurs.\nIf your grant application is approved, the organization will dispense the grant money according to its rules. Grantors may also require you to submit ongoing financial records, give progress reports or demonstrate compliance with government regulations as you use the grant money.\nYou can search for grants with the Grants.gov search tool (although most of these grants are for entities that help business owners, not for business owners themselves). You can also find grants by contacting your state and local economic development agency, [Small Business Administration district office](;pageNumber=1), SCORE chapter or Small Business Development Center. END