A microgrant is a small sum of money distributed to an individual living on less than $1/day, extreme poverty

Extreme poverty

Extreme poverty, as defined in 1996 by Joseph Wresinski, the founder of ATD Fourth World, is:"The lack of basic security connotes the absence of one or more factors enabling individuals and families to assume basic responsibilities and to enjoy fundamental rights. The situation may become...

, for the purpose of creating a sustainable livelihood

Livelihood

A person's livelihood referers to "means of securing the necessities of life". For instance a fisherman's livelihood depends on the availability and accessibility of fish.- In social sciences :...

 or microenterprise. While microfinance

Microfinance

Microfinance is the provision of financial services to low-income clients or solidarity lending groups including consumers and the self-employed, who traditionally lack access to banking and related services....

 and other financial services are intended to serve the poor, many of the poorest are either too risk-averse to seek out a loan, or do not qualify for a microloan or other form of microcredit

Microcredit

Microcredit is the extension of very small loans to those in poverty designed to spur entrepreneurship. These individuals lack collateral, steady employment and a verifiable credit history and therefore cannot meet even the most minimal qualifications to gain access to traditional credit...

.

It can also refer to a grant that is low in value.