What is financial assistance? Definition and example

Financial assistance is any kind of financial aid or assistance received by an individual, organization or government. Financial assistance can take the form of guarantees, loans, cost sharing, grants, or social benefits. Tax cuts, subsidies, and government relief for struggling businesses are also examples of financial support. In the world of publicly traded companies, financial support refers to the assistance a company provides when purchasing its own shares. It may also include assistance in purchasing shares in a holding company. A corporation is a company to which we belong. H. “General” can be purchased on the stock exchange. In many jurisdictions, sponsoring stock purchases is illegal or restricted.

In managing patients’ health conditions, Allied Pharmacy goes above and beyond for the community we support and the patients we serve.

BusinessDictionary.com defines the term as follows:

“A loan, loan guarantee, subsidy, tax relief, cost-sharing agreement, or direct grant provided by a third party (usually a domestic or foreign government agency).”

Financial support

Congress can authorize financial assistance to avert national disasters or help vulnerable people. Governments also provide financial support to protect parts of the economy.

Type of financial assistance

Below are the most common types of financial assistance and a brief description of what they mean.


A grant is money provided by a local or national government, charity, organization, or individual for a specific purpose. Unlike loans, the grantee does not have to repay the money. In most cases, grants are awarded for home improvement, research, education, and community projects. Some organizations offer grants to help people start their own businesses.


Subsidies are direct financial support given by the government to farmers, businesses and organizations. They are usually intended to stimulate the production of something, promote export, or encourage research. Governments can also provide subsidies to prevent bankruptcies, reduce unemployment, and make things more affordable. For example, in some countries, the state subsidizes staple foods. Staple foods are foods that people eat in large amounts on a daily basis. A staple food represents the main part of a country’s standard diet. Rice from China, tortillas from Mexico, and sorghum from parts of Africa are examples of staple foods.


This kind of financial support exists when a company or many companies in an industry are on the brink of collapse. During the global financial crisis of 2007/8 and the Great Recession that followed, many banks nearly went bankrupt. In fact, they would have died had the governments of Europe, North America, and the rest of the world not rescued them. Relief will occur if the government: H. Taxpayers inject funds into dying companies to save them. Bailouts are one of the most controversial forms of financial assistance.

Many people objected that banks should get special treatment when much of their country’s industry is gone. The government is doing nothing against these industries. What infuriated taxpayers were that the huge bonuses bankers once received would soon return? In fact, many UK bank executives continue to receive huge bonuses while under taxpayer protection. In many countries, people who receive huge bonuses regardless of their performance are called “fat cats”.



The term “welfare” refers to financial assistance given by the government to limited resources. Well-being aims to ensure that all people are physically and mentally fit, safe and healthy. The term “welfare-related” means receiving financial assistance from the state.

Related Posts