First, FACTOR technically does not give grants to make records; they give grants for other things. They give loans. Those loans are forgivable—I think you get three in a lifetime. You're supposed to pay them back in CD sales, at a buck a sale. Some people do, some don't. At the higher level, you'll find that FACTOR essentially is a bank that loans money for free to big labels for popular artists who get the money from FACTOR and pay it back every time. But it's interest-free. If I could access interest-free money, I'd be very interested.
On October 20th, 2009. See this statement in context.