Key takeaways
- Grants don't need repayment but are competitive.
- Loans are more accessible and flexible.
- Never pay someone to guarantee a grant.
Best for
Owners researching every available source.
Grants
Offered by governments, foundations, and corporations for specific purposes or groups. Not repaid, but applications are competitive and timelines vary. Start at grants.gov and local economic development offices, and beware of anyone charging to 'guarantee' a grant.
Loans
Repaid with interest, but generally more available and flexible in how funds are used.
Pros and cons
Advantages
- Grants: no repayment
- Loans: more accessible
Things to weigh
- Grants: highly competitive
- Loans: must be repaid
Frequently asked questions
Where can I find legitimate grants?
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Start with grants.gov, your state and local economic development offices, and established foundations.
Are grants taxable?
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They can be. Ask a tax professional how a specific grant is treated.
This guide is general educational information, not financial, legal, or tax advice. Terms, requirements, and availability vary by lender and your situation.