Film Accounting Glossary
Grant
What is a grant?
Also called production grant, or regional fund.
A grant is non-repayable funding awarded to a production by a film agency, regional fund, cultural body, or foundation, usually against defined cultural, economic, or local-spend criteria.
Grants often arrive in tranches tied to milestones and carry their own audit and acknowledgment requirements. Because a grant is neither debt nor equity, it sits at the top of the financing plan and does not participate in the revenue waterfall.
Example
A regional fund awards $250,000 against a local-spend commitment, paid in three tranches tied to start of principal photography, wrap, and delivery of an audited spend report. It also requires a credit and a logo on the picture.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
Top of the financing plan. Neither debt nor equity, so it does not participate in the revenue waterfall, but it carries its own audit and acknowledgment duties.
Common mistake
Overlooking the conditions. Grants commonly carry milestone tranches, local-spend commitments, audit requirements, and credit or logo obligations at delivery.
Related questions
- Does a film grant have to be repaid?
- No, which is what distinguishes it from debt. It also does not participate in the revenue waterfall the way equity does.
- What conditions come with a production grant?
- Typically local spend or hiring commitments, milestone-based payment, an audited spend report, and acknowledgment in the picture's credits.