Understanding the Different Types of Grants: Government, Private, and Community-Based

When you're in need of financial help—whether it’s to support your small business, pay for school, cover living expenses, or recover from an emergency—knowing where to turn can be confusing. Not all grants are created equal, and choosing the right type can make the difference between a successful application and wasted time.

At SummitVista.net, we believe that understanding the differences between government, private, and community-based grants is key to getting the help you deserve. This guide will break down these categories in plain language and help you figure out which type best fits your situation.

What Is a Grant?

Before we dive into the types, let’s be clear: a grant is money that you don’t have to pay back. Unlike loans, grants are given based on eligibility, need, merit, or alignment with a funder's mission. They can come from a variety of sources — each with its own application process, funding cycle, and usage rules.

1. Government Grants

What are they?
Government grants are financial awards provided by federal, state, or local agencies to individuals, organizations, nonprofits, and businesses. These grants are often aimed at public benefit and are funded by taxpayer dollars.

Examples of government grants:

• Federal Pell Grants (for college students)

• Small Business Innovation Research (SBIR) grants

• Emergency Rental Assistance Programs (ERAP)

• Weatherization Assistance Program (WAP)

• COVID-19 relief funding from federal/state programs

Who can apply?

• Low-income individuals and families

• Students

• Veterans

• Business owners

• Nonprofits

• Farmers and rural residents

Pros:

• Often large funding amounts

• Reliable and well-documented

• Regular funding cycles

Cons:

• Highly competitive

• Lots of paperwork and strict eligibility

• Long approval timelines

How SummitVista helps:
We make government grants easier to navigate by summarizing each one in clear, everyday language and providing tools to track deadlines, required documents, and status updates.

2. Private Grants

What are they?
Private grants are awarded by foundations, corporations, and philanthropic organizations. These grants are typically mission-driven — meaning they support causes, innovation, education, equity, entrepreneurship, and community improvement.

Examples of private grants:

• The Gates Millennium Scholars Program

• Verizon Small Business Recovery Fund

• Walmart Community Grant Program

• Black Girl Ventures Pitch Fund

• Google.org Impact Challenge

Who can apply?

• Nonprofits

• Small business owners

• Students

• Artists

• Innovators and community organizers

• Underrepresented or marginalized individuals/groups

Pros:

• Often easier application process than government grants

• More flexible usage of funds

• May be available year-round or on a rolling basis

Cons:

• Often smaller in size than government grants

• May require specific alignment with a funder's values or goals

• Some are invitation-only or limited by region

How SummitVista helps:
We list verified private grant opportunities across industries and needs, complete with tips on writing standout applications, and alerts for open/closed application windows.

3. Community-Based Grants

What are they?
Community grants come from local organizations, churches, credit unions, municipalities, and neighborhood foundations. These grants are usually small-scale but highly accessible, aimed at improving life for people within a specific geographic area.

Examples of community-based grants:

• City-sponsored small business grants

• Local housing assistance funds

• Neighborhood art project grants

• Faith-based emergency support

• Library or school district mini-grants

Who can apply?

• Local residents

• Families in crisis

• Community leaders or event organizers

• Small business owners in underserved areas

• Youth, artists, and educators

Pros:

• Less competition

• More personalized support

• Fast turnaround

• Local impact and visibility

Cons:

• Smaller funding amounts

• Limited to specific cities or zip codes

• May not be well publicized

How SummitVista helps:
Many people don’t even know these grants exist. SummitVista actively curates and highlights local and regional programs so our users don’t miss out on hidden opportunities in their own communities.

Comparing All Three at a Glance

Which Type Is Right for You?

Your best fit depends on your goals, location, urgency, and capacity to complete applications.

• Need tuition help for college? Start with government Pell Grants and mix in private scholarships.

• Running a small business? Consider both government grants (like SBA programs) and private funds (from corporations or pitch competitions).

• Need urgent rent help? Look locally — community-based assistance or regional housing authorities may move fastest.

• Launching a community project? Apply for microgrants from local nonprofits and credit unions.

Pro tip: Don’t limit yourself. Apply to grants in all three categories to increase your chances of funding — especially if your needs are time-sensitive or long-term.

Final Thoughts: Knowledge Is Power — And SummitVista Is Here to Help

One of the biggest challenges people face is simply not knowing what’s available or how to apply. That’s where SummitVista.net comes in.

Our platform helps you:

• Discover all three types of grants in one place

• Filter by need (housing, food, education, business, etc.)

• Learn how to apply with confidence

• Avoid scams and misinformation

• Stay organized with alerts, deadlines, and grant prep tools

Whether you’re just starting out or looking to expand your search for funding, we make it easier, faster, and safer to access real help when you need it most.

👉 Create your free SummitVista profile today to get matched with grants and assistance programs tailored to your life and goals.