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If you are selling a grant based on a business case you would rarely get one approved. That’s the essence of what a grant is – providing a benefit because you can’t support it on a business case. If you do have a business case, you get a loan.
Community groups don’t take out loans, they are funded from other means and are generally not for profit.
The business case in this instance is the community benefit rather then the ability to pay back the loan.
But in either case you need to substantiate the benefits.