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A microgrant is a small sum of money distributed to an individual or organization, typically for hundreds or thousands of dollars, with the intent of enabling the recipient to develop or sustain an income-generating enterprise. Often they target individuals living on less than $1/day, extreme poverty, for the purpose of creating a sustainable livelihood or microenterprise.[1] Recipients of microgrants can also be organizations or grassroots groups that are engaged in charitable activities.[2][3] se to seek out a loan, or do not qualify for a microloan or other form of microcredit.

There are three primary types of microgrants; one is a small sum of money (~US$50-500) granted to an individual to start an income-generating project, another is a small grant (~$2,000-$10,000) to a community for an impact-oriented projects and a third is a small grant to an individual for any cause they see fit.

The term microgrant can also refer to a grant that is low in value.[4]

Microgrants for income-generating projects[edit]

Unlike microcredits, microgrants do not need to be repaid. While microfinance and other financial services are intended to serve the poor, many of the poorest are either too risk-averse or unaware of such offers.

Microgrants for community-based projects[edit]

A microgrant serves as an opportunity for communities facing poverty to receive funding for impact-oriented projects, such as schools, health centers, farms and more. Microgrants for community projects provide a novel opportunity for people facing poverty to solve their own local problems with financing that need not be paid back.

Spark MicroGrants is known for pioneering this community-based approach to microgranting. Spark pairs capacity building facilitation with their microgrants to ensure communities receiving the grants are well positioned to take them on.

Microgrants for individual causes[edit]

A microgrant has also been coined to describe small amounts of funding awarded to individuals for their own use. The ROI Community deploys this type of microgrant.


  1. ^ CSMonitor.com (2008-08-09). "U.S. Army microgrants". Csmonitor.com. Retrieved 2009-09-23.
  2. ^ Schmidt, M.; Plochg, T.; Harting, J.; Klazinga, N.S.; Stronks, K. (2009). "Micro grants as a stimulus for community action in residential health programmes: A case study". Health Promotion International. pp. 234–242. doi:10.1093/heapro/dap017. Archived from the original on 2013-04-15.
  3. ^ "Conditions of Sponsorship | Microgrants".
  4. ^ BenchFly.com (2010-04-02). "Search for Research". BenchFly.com. Retrieved 2010-05-02.

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