They are, in general, provided to projects that are commercially marginal, and they do not need to be repaid under the condition that the stated purpose of the grant funding is achieved. However, in some cases grants may be convertible to loans or equity if the project achieves commercial success. Shareholders have only a residual claim to the assets of the project company. This type of finance represents the highest level of risk, and the expected returns for equity holders are accordingly higher than for lenders.