Funding from free money grants finances businesses, organizations, or sometimes individuals, although that is most often an educational grant. The budget will need to be used in a specified way to meet the requirements.
When free money grants originated, they were all funded by the federal government. These days, grants are organized and sponsored by non-profits, corporations, states, counties, and cities.
Their qualifications may change depending on the current economic situation. The upside to a traditional bank loan is that they often offer the best terms in a thriving economy if you can qualify!
The Small Business Administration is the government agency that financially backs business loans offered to business owners by lenders and banks. This type of loan is a solid option, just like a bank loan.