Types of financial assistance: Grants, Scholarships, and Loan

There are many different types of financial assistance that a company can use to either start or grow its business. This blog post will go over the three most common types of financial aid: grants, scholarships, and loans.

Grant: A grant is a sum of money that may be awarded to an individual, company, or organization to carry out some specific purpose. Grants differ from loans and scholarships because they do not have to be paid back, while the other two types of financial assistance do. An example of a grant is the Productivity Solutions Grant Program. If you’re a part of the PSG grant approved vendor list, your chances of success are higher.

Scholarship: A scholarship is a sum of money that may be awarded to an individual, company, or organization to carry out some specific purpose. Scholarships differ from grants and loans because they do not have to be paid back, while the other two types of financial assistance do. An example of a scholarship is the Pinnacle Bank Scholarship.

Loan: A loan is a sum of money that may be lent to an individual, company, or organization to expect it to be repaid-with interest. Interest rates on loans can vary depending on the lender and the loan amount. An example of a loan is the Small Business Administration (SBA) Express Loan.