Conditionally Repayable Contribution


Category:Grants and subsidiesNational:8
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Do you qualify for Conditionally Repayable Contribution?
From the government's perspective, every small business owner is a potential benefit to the nation's economy and not a customer to be exploited for direct profit, including at their expense or detriment. To this end, some government funding sources provide funding schemes that are specifically designed so they will not burden recipients with debt or other obligations if the situation takes a negative turn.

A conditionally repayable contribution is a form of government business loan that could be of any type (interest free, low interest, etc.) Unlike most loans, these funding schemes only need to be repaid if the business achieves very specific conditions once the money has been received. Once these conditions are met, the repayment terms are activated and begins.

Operatively, conditionally repayable contributions are intended to help a business survive a less than successful endeavour without taking on more debt, but assumes repayment shall occur if the project is successful (and thus profitable.)

Common conditions attached to these financing schemes include stipulations on how the provided funds must be spent, the percentage of an expense it can accommodate or maximum amount allowed, and the small business objective being sought after. Most often, these conditions are relevant to the goals served by the government agency providing the funding.

Learn whether a Conditionally Repayable Contribution is ideal for you

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