Currently, there are more than 3,000 grants and support schemes available to assist small and medium-sized businesses in the UK. However, business owners are often unaware that many of these grants and schemes exist, or may not realise how a grant can assist their business.
A business grant or scheme provides funding to enable a business to undertake a new project or carry out a specific purchase. Typically, grants provide between 15 and 50% of the project costs or equipment purchase price, up to a certain amount. However, it will be necessary to prove that you have matching funds from other sources prior to applying for the grant.
Grant funding differs from loans and other forms of business finance as they do not need to be repaid – as long as the agreed terms are met and you can prove that the funds have been used for the purpose they were awarded.
However, because of this, there is strict eligibility criteria that needs to be met with each available grant and it will be necessary to ensure your business complies prior to making an application. Thorough research should be carried out into the most appropriate grants and schemes for your business, and careful consideration should be given to the business plan submitted during the application process.
Business grants and schemes are available from a number of organisations, including:
- The European Union
- Government departments and agencies
- Regional Development Agencies
- Local authorities and councils
- Business support networks
- Chambers of Commerce
- Local area business support bodies
Each organisation has its own objectives, such as the economic regeneration of a certain region or to increase skill levels in a certain business sector, and it will be necessary to ensure that your project helps to achieve the objectives of the grant provider.
Some grants and support schemes are in place to assist with the following:
- Preparation of a business plan
- Starting up
- Marketing
- Research and development
- Exporting
- Employing or training staff
- Development of a new product
Alternatively, grants may be awarded to certain sectors of the community, such as young entrepreneurs, ethnic minorities, women or people with disabilities; or may be available for certain industries, such as tourism, high-tech businesses, arts or rural enterprises.
It will take time to investigate and research the grant and support schemes most appropriate to your business. So long as your project meets the eligibility criteria, a grant can prove a useful form of unsecured business finance.