To be eligible for economic development grants, a business, individual, or other organization is likely to face an obligation to first apply. There is typically a selection committee in place to decide how grant money will be awarded to applicants. Economic development grants could be used to further industry in a region. Individual countries or municipalities might issue the money to keep a certain industry competitive with rivals, to advance the research that is being performed, or to provide some type of financial relief to a recipient that will be in a position to use an award to advance some cause.
Government grants could be offered to smaller governmental entities in an area for infrastructure development. If an area needs to upgrade roads, highways, or public buildings, the region could be eligible for state money to use towards the construction process. The money is usually awarded with the purpose of maintaining the economic viability in a region by making the city more conducive to new business and greater employment opportunities, for instance.
Private organizations, such as corporate foundations, might also dedicate funds to economic development grants. The money could be directed to organizations that promote instruction to citizens about achieving major milestones in life, such as saving for a college education or buying a new home. Grants might be directed towards promoting initiatives for children, including academic learning programs and techniques on saving money.
Funds may be designated to extend economic development grants to one recipient, such as a business. The money could be used to help create wider distribution of a certain practice that is deemed beneficial for a region, such as renewable energy. With industries such as solar or wind power considered to be in the early stages in comparison with the development of fossil fuel-generated power, governments can take initiative to advance the integration of renewable sources by providing funds to further the industry.
Some areas are highly competitive about advances in technology. In some areas, economic development grants might be used to support the development of new and emerging technologies. There might, however, be certain variations on these particular financial distributions.
For instance, technology awards could be offered in the form of a specified loan to a start-up business. Once that company begins earning profits, it would then repay those funds. The recipient is selected similar to the way that a grant recipient would be chosen, and the end result has the same benefits. This money allows an organization to invest and hire personnel for the advancement of technologies that can benefit a region in the future.