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Grant Agreement
Grant agreement means a legal instrument of financial assistance between a Federal awarding agency or pass-through entity and a non-Federal entity that, consistent with 31 U.S.C. §6302, 31 U.S.C. §6304:

(1) Is used to enter into a relationship the principal purpose of which is to transfer anything of value from the Federal awarding agency or pass-through entity to the non-Federal entity to carry out a public purpose authorized by a law of the United States (see 31 U.S.C. §6101(3)); and not to acquire property or services for the Federal awarding agency or pass-through entity's direct benefit or use;

(2) Is distinguished from a cooperative agreement in that it does not provide for substantial involvement between the Federal awarding agency or pass-through entity and the non-Federal entity in carrying out the activity contemplated by the Federal award.

(3) Does not include an agreement that provides only:

  • (i)   Direct United States Government cash assistance to an individual;
  • (ii)  A subsidy;
  • (iii) A loan;
  • (iv) A loan guarantee; or
  • (v)  Insurance.

Quoted from 45 CFR §75.2.

See Also: Cooperative Agreement Federal Award