The difference between a grant and loan

Dear Editor,

I could be wrong but here’s my own re-write of the Samoa Agriculture Competitiveness Enhancement Project, funded by the Ministry of Agriculture and Fisheries for clarity. 

Grant- is money you can keep.

Loan: is money you have to return. 

ADVERTISEMENT

If $10,000.00 is the total amount of money allocated for the Agriculture Competitiveness Enhancement project than $5,000.00 of that $10,000.00 is a grant (don’t have to pay back) $3,000.00 is a loan (you do have to pay back) and $2,000.00 is in kind or I’d rather say the farmers sweat is worth $2,000.00. Total of this part grant, part loan and part sweat is $10,000.00. Let me simplify it more.

You get $5,000.00 as a grant. 

They loan you $3,000.00 which you have to pay back so out of the $5,000.00 you give them back $3,000.00 leaving you with $2,000.00 for your sweat. 

Fair enough, so out of the $10,000.00 all you got was $2,000.00 for your sweat? Why didn’t they stop the mathematical ping pong and just say you’re getting a $2,000.00 grant? Call me crazy or we still have a misunderstanding?

 

Michael Uhlia 

ADVERTISEMENT

Related Stories


Bg pattern top

Sign in for free to read more stories

Bg pattern light

UPGRADE TO PREMIUM

Subscribe to Samoa Observer Online

Enjoy access to over a thousand articles per month, on any device as well as feature-length investigative articles.

Ready to signup?