Grants are amounts of money, free tools, and reduced cost for the use of vital resources given by the government, corporations, or trusts to business operators. The aim is to boost business activities and encourage more investments. If you run a small business, you have an opportunity, just as the large companies to enjoy grants from your government schemes. The amount of money is not repayable or has minimal interest rates, but you have to win the award by providing a suitable business plan to impress your granters.
Types of Small Business Grants Available
Most institutions prefer to give awards to big companies expected to bring higher returns. However, the government is in constant support of the growth of small business enterprises and has, therefore, availed grants for them. If you run a small business, the following types of gifts are available for the concerned business types.
Grants Available to Start Up Small Businesses
These are funds given directly to your business. Most grant schemes will expect you to have at least 50% of the total project capital before offering the grant. The use of money is also regulated, and you can only use it for the agreed-upon purpose.
The government reduces the amount of tax payable when starting a business. It involves employment allowances that reduce insurance policies you pay for your staff to £3,000 per year. If your business deals with research and development, you can also enjoy corporation tax relief. The government also provides business rates relief for coming up with enterprises.
These are types of loans with very low or no interest rates and more extended repayment periods. The U.K government developed a startups loan company offering new enterprise loans up to £25,000 for 6%, repayable in 12 months.
Grants Available to Particular Entrepreneurs
Business Grants for Women
With the recent movements on women empowerment, the government has availed grants to support female-run businesses.
Awards for Young People
The young entrepreneurs are the future of the country. The government has, therefore, availed grants for people between 18 and 30 years. It is meant to offer support, finances, and training.
Grants for Social Entrepreneurs
Charity based businesses also gain grants from various government schemes to boost their projects.
Where Can You Find Small Business Grants?
Many dockets in the UK government offer a variety of awards to various small enterprises, and they include; Department of business, trade and investment, transport, environment, food, and rural affairs. The department of transportation, education, and strategy board also provides grants.
European Union Grants
It administers a large number of grant schemes financed by the European regional development funds. They include development funds, investment funds, and social funds.
Local Authority Grants
Local agencies’ schemes offer gifts to promote small businesses in local areas. Examples include the domestic enterprise partnership, regional growth funds, and catalysts for growth.
Regional Specific Business Grant
Depending on where your business is situated, you can get gifts from the region. There are various government schemes in Scotland, and also from Wales, where the government offers financial guides and grants. There are a variety of awards provided in Northern Ireland.
How to Apply for Grants
Develop a Business Plan
This one indicates the objectives of your business and all the details of the operations carried out. It shows how you plan to use the money.
Get a Convincing Business History
Compile all the business successes in the operation period to convince the render of your capabilities and responsibilities with finances.
Outline how the Awarding Organization will Meet its Objective.
Include the employment opportunities your enterprise can create, and also the benefits of your new product. It consists of the charity activities promoted in the region. Check funder’s guidance notes and align their objectives with your business’.
State the Funds Available.
Grants don’t fulfill your total capital needs. Indicate the amount you have at hand, and most schemes require you to invest an equal amount as the grant. Cost of your project and get the actual authorization for your price.
When the grants site opens, be the first to apply, this will increase your chances of approval. Due to the high competition of gaining granters the first come first served rule applies.
Develop a research plan and establish resources
Research thoroughly on your business project; indicate available and alternative sources of resources available for your business.
Contact the Grants Scheme
Get personal contacts of the grant-awarding team to consult in case of a concern during the application period.
Appoint a Grant Consultant
The consultant will give you all the relevant information concerning the grant scheme. He will also follow up through constant communication with the program. Consultants are very beneficial, especially when you are dealing with very prominent organizations that are difficult to approach. Weigh in the cost of hiring a consultant because most are very expensive and get one within your budget.
Complete Application Form
Fill all your personal and business details, and be very honest to give only facts concerning your enterprise.
Approval of Submission
If your details are correct, you will obtain the departmental permission of submission.
Apply to the Funder
It is the final step of the application process, which indicates contact of your request form with the grant schemes.
Make contact with your consultant and funder to determine whether your grant is approved. Stay informed and up to date with the relevant scheme updates concerning grant issuing.
For a small business enterprise, you are likely to contribute all the capital solely. The government is, therefore, more focused on uplifting existing and upcoming small businesses. Take advantage of every available opportunity to boost your business. You only need to get half the capital and apply for government grants. There are various other sources of finance for your business, but government provision is readily available for every citizen, irrespective of social class and income rates. You should focus on building your small business; it might grow to be the most significant next enterprise in your country.