A grant is money a government or organization gives you that you don't pay back. That's the key difference from a loan. But "free money" is where most people get confused, because four different things get lumped together:
Grants — non-repayable, competitive, and tied to a specific purpose (hiring, R&D, equipment, exporting). You apply, you're scored against criteria, and if you win you report on how you spent it.
Loans — you pay these back, though government-backed loans (like the Canada Small Business Financing Program) have better terms than a bank alone would offer.
Tax credits — you spend the money first, then get some back through your tax return. SR&ED is the big one: spend on R&D, recover 15–35%.
Wage subsidies — the government covers part of an employee's or trainee's wages.
Roughly 57% of Canadian "funding programs" are true non-repayable grants. The rest are loans, tax credits, or subsidies that marketing often calls "grants." Knowing which is which tells you whether you're getting money you keep, money you repay, or money you recover later.
The takeaway: before you spend a minute applying, know which of the four you're looking at. It changes everything about what you're agreeing to.