what is it?

Getting grants does not disqualify a business to be a social business. General Motors can get government grants, that would not disqualify it as a business. Many companies get land grant, tax benefits, and tax holidays. Important thing is whether it has owners, and can it become self reliant ultimately.

There is nothing wrong in using grant as seed capital along with equity capital (however small) of the owners. But can the company earn more than its operational expenses, so that it can contribute in paying back its grant amount, equity amount etc., in the very long run?