Grants are non-reimbursable funds provided for technical cooperation programs. Some grants may be repaid to the IDB if the program eventually obtains a loan, either from the Bank itself or another source.
Grants can be financed by the IDB’s own financial resources or funds from third parties.
IDB Grant Facility
Trust Fund Grants
Trust funds, which are generally established by a country or group of countries and entrusted to the IDB to administer, can finance grants. These grants go primarily to the relatively less developed member countries, namely Group II countries.
All legally constituted public and private organizations are eligible to receive trust fund resources, although some funds limit their support to specific geographic areas and sectors. The funds have different limits on the size of individual projects.
The Multilateral Investment Fund (MIF) grants support small-scale, targeted interventions that pilot new approaches and act as a catalyst for larger reforms. The MIF, an autonomous fund member of the IDB group, is a major source of technical assistance grants for private sector development in Latin America and the Caribbean.
Depending on the scope of the proposed project, the MIF can provide resources to both public and private sector organizations. Private sector agencies can include non-governmental organizations, industry associations, chambers of commerce, etc.
Social Entrepreneurship Program
The IDB has a Social Entrepreneurship Program, which provides grants to private, non-profit, community based organizations and public local development institutions. Program resources may be used for technical assistance, training, investment in productive or basic services infrastructure, procurement of equipment and materials, working or operating capital, and/or marketing.
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