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What are Government Cash Grants?

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  • Written By: Tess C. Taylor
  • Edited By: Bronwyn Harris
  • Last Modified Date: 22 October 2018
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Government cash grants are essentially monies that are allocated by the government to help provide the necessary funding for many special programs. Government grants do not have to be repaid; however, they must be used for specific purposes under the cash grant programs. Government cash grants are available for many purposes including starting a small business, paying off personal debts, purchasing homes, paying for college education and supporting the socio-economic development of disadvantaged or minority communities.

In many regions, including the US and Canada, government cash grants can be utilized by low-income, credit-challenged or first time home-buyers to purchase or put a down payment on residential property. In addition, cash grants can be obtained to make repairs to existing homes to improve the quality of life in disadvantaged communities. Cash grants from the government are available to pay for new heating systems, install roofing and windows and weatherize homes so that they can be more energy efficient.

Small businesses and start-ups most often benefit from government cash grants, especially those entrepreneurs that come from minority groups or have special interests. In addition, business that are struggling during difficult economic times can often qualify to government cash grants which are designed to keep certain industries afloat to support the economy. This prevents companies from going under, causing unemployment rates to rise and a devastating domino effect that can damage the local and national economy.

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In most regions, government cash grants are available to help students from low to middle income families go to college to obtain career-enhancing degrees. In addition, adults who want to return to college to obtain higher degrees may benefit from government grants which helps off-set the astronomical costs of going to school. Cash grants are somewhat limited for college students, but they can significantly reduce the amount of student loans and other forms of funding needed to go to school for a degree program.

Another type of government cash grant that is available in many regions is a grant used to pay off foreclosures or overwhelming debts for low-income, minority or disadvantaged communities, including those affected by natural disasters or economic hardship. This allows families to improve their standard of living and reduces liability and interest rates which can make it impossible to get on top of debt. Cash grants are often used to pay off medical or hospital bills, offset home foreclosures and bankruptcies, pay for utility bills and provide discounts for government-sponsored services.

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