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Government Grants: Types Of Assistance

There are 15 types of assistance available when you receive a government grant.  They range from individual payouts to loan guarantees.  The type of payout that is available is predetermined by the type of grant that you are requesting.

Below is a sample of some of the options that are available:

* Formula Grants
These are grants that are issued to a state or its subsidiaries that will be used for an ongoing theme project but not specifically allocated for.
* Project Grants
These are grant allotments that are designed for a specific project or program and must be used according to prearranged planning.
* Direct payments for specified use
These payments are paid directly to the individual or private firm.  These monies must be used for a specific, prearranged project.
* Direct Loans
These are loans that are issued for a specific period and must be repaid; they may or may not require interest payments.
* Guaranteed loans
These are loans that are backed by the federal government. 

There are also several government grants that allocate services or property instead of cash assistance.  There are advisory services and counseling this are available to individuals or private firms.  The government offers specialists in specific areas and they give you their expertise and advice.  This can be even more valuable than a cash grant in certain cases. 

These are just a few of the different types of assistance that are available.  They are not interchangeable, meaning that you cannot apply for a grant that offers project grants and then turn it into a formula grant.  So be very sure of your specific needs when applying for your grant. 

If you are an individual, the most easily available grants are the project grants, which allow for specific uses for which you must write a detailed proposal.  There are direct payment grants that will allow you to receive the grant money and use it according to you’re agreed upon uses. Guaranteed loans allow people that may have a problem securing financing to get the needed funds from the banking industry because the federal government guarantees the loan for repayment.

As is always the case when dealing with government grants, the main requirement you should have is that you do your research.  Know what you are applying for and if you qualify for the program that you wish to use.  There is the option of using a government grant-preparing agency.  Again, you must do your research and make sure you are working with a reputable company. 

For further information on the types of assistance available, you can look up the Catalog of Federal Domestic Assistance.  There is a complete listing there of all the available types of assistance.  With a little effort on your part, you can find all of the information that you require to apply for the grant that meets your specific needs.

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