The Basics

If you are looking for business grants to help you start, refurbish, or relocate in the UK, the first step is to research what is available for business grants in the areas you need like start up or relocating to another area.  Or, maybe it is a business you want to relocate to the UK from another country and you need to see if there are any business grants for such a project available. A little research will get you what you want to know.

A business grant is money that usually pays a part of the expenses you will incur in a move, or setting up a business.  You don’t have to repay this or give shares in your business.  Various places are available to look into for business grants, such as the Government, European Union, Regional development agencies, small business corporations and others in the private sector as well. These business grants can be associated with certain businesses, or a geographical location, especially areas in need of economic boosts from new industry.

The Government

The Government helps with grants to businesses and they assist with networking and advice on getting set up and applying for the grants you qualify for as a business. There is a lot of competition for business grants through the government, the guidelines and qualifications are exacting. If you meet the criteria then you can apply and hope you are selected for the grant

Government business grants are usually for projected development of projects that haven’t been started yet.  Generally the terms and conditions of the business grant will allow you to keep the grant unless you break the agreement you have. Then you will have to pay the grant back.

Matching Funds

Most business grants from the government also mean you have to get matching funds from another source like a loan or funds from other businesses who are investing in the project. Grants are never 100% of the amount needed, you need to show your own participation and come up with some of the capital needed to invest in the relocation.

Sources for Business Grants

There are several sources for business grants in the UK: the Government, regional development agencies, Chambers of Commerce, county enterprise boards and even some colleges have business grants. You have to research by the type of business you have and what your plans are for it before you can apply for a grant.  Know what you are talking about before going into the entities you are applying to obtain a business grant from.  Any office you are going to see is going to want a precise plan of action right down to approximate dates and the profit projections.

Business grants may take some time to get approved too; it all depends on the timetable of the office you have applied to and how many they are looking at. Not everyone can get approved because there is a limited amount of grant money available.  One good tip is having your matching money already in a place where you can show you already have that part of the funding.  Be organized and able to answer any questions that might be asked of you, including your personal background.  The office you apply through is going to do a background check before they ask you anything so you have to be honest in your answers.  The criteria vary for places you can apply but they will all want to make sure they are dealing with an up front person who is honest in their conviction to the project and will fulfill the agreement and terms of the grant.   With a bit of luck and some determination, you should be getting your project off the ground in no time with the help of business grants.

Thanks to John McLean for contributing this article to our grants blog:

Grants Tips

Many people – in companies all over the world in fact – face the problem of trying to start a business. It is a classic dilemma: you have an idea to make money, but you need money in order to start the business. It’s a classic "Catch-22" scenario. So, that is where a government business grant can come into play. As it happens, the United Kingdom is one of the very best places on Earth to either start or expand a small company. They offer business grants to native UK residents but also people relocating their businesses in the UK for overseas, so you can get in on the act too!

The good news about business grants from the government is that there are lots of them out there. The bad news: you have to seek them out and apply; they do not come looking for you. There are close to two dozen different business grants in the UK. So, let’s look at just a few of them. First, there’s the direct grant, where a program will give you some funds to pay part of the costs for training, product development etc. Now, that’s a key point: part of the costs. It’s rare for a grant to completely cover the costs of some aspect of your business, but it will at least cover a portion.

Then there are grants that are much like a small business loan. The difference is, if your business fails, you do not have to repay the money. And then there are real business loans; they are called soft loans because the terms and conditions are very generous. The interest rate is usually quite low, some are even interest free. Next, you can get what is known as equity financing. With this type of grant, you don’t pay the grantor back in cash, but in shares in your company. In this case, the grantor looks at your business as an investment; they believe you have the potential to grow your company into something profitable, and that will mean that the shares they own will increase in value.

Sometimes, business grants in the UK aren’t about money at all; they have to do with skills. After all, many new businesses often lack knowledge or skills in a particular area: marketing, promotions etc. So, some grant programs have come to recognize this, and they offer free (or greatly reduced) advice on those critical subjects. Then there’s the issue of resources. For some small business owners, it’s not that they don’t know what they’re doing; it’s that they don’t have the physical materials or maybe a factory / store to develop their product or service. So, some grants are made of up raw materials, office equipment etc. Going hand in hand with this type of grant is the transfer of technology. Very often, new and innovative inventions or processes are created by large corporations or government labs. In the U.S., NASA was responsible for incredible breakthroughs in fuel cells, computers etc. So, sometimes large corporations or governments will share these new developments with some small companies as a means of both helping they to get started, and to disseminate the technology.

Then there is the issue of not new technology, but merely the best way of doing something. As an example, a dozen people will have a different way of laying bricks. Yet, one of them might do it the best and most efficient way. Over time, that way will become the industry standard. This is also known as "Best Practices", and some companies will share these with start-up firms to help them operate in the most efficient means possible.



Thanks to John McLean for contributing this article to our grants blog:

Grant Guide

A government grant is an option to obtain start up financing for a business. However, not everyone is qualified to get a business grant. Usually, grants are given only for specific groups or specific industries of business. In addition, government grants make use of specific guidelines before providing business funds.

If you are in need of financial help for your business, then perhaps you can consider a government grant as one of your options. However, keep in mind that there are some conditions you have to meet in order to qualify for a grant. Also, applying for a government grant can be a lengthy process so if you need the money immediately, perhaps it would be better to try other business financing resources. Nevertheless, if you can afford to wait, you have to be willing to go through the whole process of applying for a grant..

Where can you find small business grants? One place to start your search is through the Catalog of Federal Domestic Assistance (CFDA). Here you can find a list of grants from different government agencies at no charge. Remember that grants may come in different packages such as for business development, for rural businesses, equipment lease financing and others. Find a business grant program that is best suited for your type of business.

Once you’ve found the right grant program for your business, be prepared to go through the procedures that required for you to get an approval. Let’s talk about some points you must remember to help you win that small business grant you’re aiming for.

Prepare a good business plan. To convince the grant officer that you deserve to be granted funding assistance, you have to be able to present a good business plan. What makes a good business plan? It needs to show the history of the business, the nature of the business, the efforts that has already been done to establish the business, the goals of the business and other important details that are relevant to the business. Don’t forget to show how the business can benefit from additional funding and how it can support that specific government agency providing the grant program.

Pay careful attention to the information you provide. When filling up your grant application, see to it that you’ll be providing correct and accurate answers. Take the time to review the application several times before submitting it to ensure that you’re not missing anything or provided any wrong detail.

Seek professional assistance. It is recommended to ask assistance from a financial consultant or a certified accountant with regards to the processes involved in obtaining a grant program. Submitting documents that have been certified by a professional will certainly add credibility to your application.

Be visible. As we’ve said, getting a grant approval can take some time. While waiting for an approval, let your grant officer know that you are deeply interested in winning his approval by keeping in touch in a professional way.



Thanks to Irish Taylor for contributing this article to our grants blog:

Grants Tips

Every new entrepreneur dreams to take his business to huge heights but most of them fail to realize their goals. Lack of capital is a very important reason along with poor plans and marketing. But if the marketing ways are good enough, then it would be really unfair if their business fails only because of low funds. For this, many grants are available so as to boost their business.

It is necessary to realize which type of finance is most required and the extent to which funding is important. Then one can approach government grants, banks, big investors etc. for the capital.

Importance of business plans

The business plan can be said as the key to small business grants. The plans give a clear idea of your goals and vision and the also the path and speed you intend to uptake to reach the target. The potential in your business is shown in your business plan and it is the plan itself, which increases the confidence of the grant distributors in you.

Presentation of the business plan

The next important step is the presentation. Any small business grant distributor will be interested in how the money is planned to be used by you in the most efficient and economic manner, how much profit is expected with the input. Bank loaners will want to find how you intend to repay. So presentation and explanation of all these can improve the chances of grant sanction. Small business Grants are also available by rich investors. But they look out for your confidence your own business. So it is important to invest one’s own personal money into the business for these investors to sanction the funding.

Eligibility for small business grants sanction

• The location of the enterprise is one big reason for sanction of small business grants. The government wants decentralization of industries in order to avoid migration toward cities. So the small business grants are extended to those, preferably, who own a business in rural areas. Also, since it helps to raise the standard of living of the rural people, the government grant sanctioners are less rigid.

• Small business grants are readily extended to small business industries to help them grow, only if they have a potential.

• Small business grants bodies have their own objectives and give grants to those satisfying them in the best possible manner.

Reasons for failure of sanction-

If the grant bodies do not see potential in the business or if the field of research is nowhere connected to their objectives or if the business plan seems to be unreal, grant is not sanctioned to such small businesses.

It is said that help comes only if you look for it in the right place and only if you deserve one. And this is equally true for a grant to be sanctioned. State governments, trustee bodies etc. groups sanction grants from time to time to those who really need them. The only necessity is to prove one’s own potential to them. Sometimes these grants turn small aspirants into powerful, ruling businessmen.



Thanks to James Copper for contributing this article to our grants blog:

About Grants

MT asks about grants:

I am in need of funding for business equipment and software to start my own business from home. I have seen commercials regarding government money being out there and available for all sorts of reasons like, business start up, buying a home, renovations, debt consolidations, etc. But, these commericals are advertised by people who want a fee for the information on these grants and loans. I have always figure that if they could find this information then I should be able to also. And, I have looked on and off for awhile now and can only find information if I pay a fee to someone else. Does anyone have any suggestions or has anyone actually received one of these loans and/or grants?

Grants Tips