So what exactly is an advance for a federal grant? In the 2 CFR Part 200 (Uniform Guidance or Super Circular), Advance Payment is referenced in Section 200.3 as a payment that a Federal awarding agency makes by any appropriate payment mechanism; to a non-Federal organization; and before the non-Federal organization disburses the funds for program purposes. In other words, it’s a payment method where the funder (such as HUD) pays the federal grant recipient in advance of spending the grant funds. It sounds great, but it comes with strings attached in the form of additional management regulations, financial regulations and additional operational regulations.
What is Advance Payment For Federal Grants