A startup small business grant is monetary funding from the government or an organization that is given in order to help small companies and nonprofits succeed in building and growing their business.

Unlike loans, you don’t have to pay this money back. There’s no collateral that you’re required to put up, and you won’t need to pay fees or interest. The best part about grants is that the money is yours to keep, and you’ll never have to pay it back after using it for your startup.

While grant money is awarded to you, it may come with rules that dictate how you can spend it. For example, let’s say you apply for a grant that is to be used to advance the technology in your business so that you and your team can work faster and produce more of your product.