Grant Anticipation Note (GAN) is short-term municipal financing issued in anticipation of receiving a grant from the federal government or one of its agencies.
Applying "Grant Anticipation Note (GAN)" to Securities Exams:
Municipalities will often issue interim financing in anticipation of receiving permanent financing, revenue or payments from other source. If a municipality is to receive a grant from the Federal Government in the near future it may issue grant anticipations notes so that it may begin or continue the operations that are to be paid for by the money received in the grant. Once the grant has been received it will use those funds to pay off the grant anticipation notes.