Definition of ‘Grant Funding’
Grant funding is an amount of money given to a business often by a government department, corporation, or foundation to fund a specific project or purpose.
Small business grant funding offers a business an opportunity to undertake a project which in the short term might not generate enough income to cover its costs, but which may in the longer term be self sustaining. While grants have the advantage that they are non-repayable, they can be difficult and time consuming to obtain.
Grant Funding and the Financial Projections Template
Grant funding is normally non-repayable, and providing the conditions for the grants receipt have been complied with, the grant funding is included in the income statement of the business as grant income, and matched against the related costs or useful life of the asset for which the grant was intended.
Prior to being released to the income statement, the grant is carried as deferred income under the heading of other liabilities.
For further information see the Wikipedia grant funding definition.
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