Many different types of funding programs are available in the UK. These programs are designed to help small businesses that need a boost.
A grant is advantageous because, despite its stipulations and requirements, the recipient is under no obligation to pay the money back.
When you’re running a small business, especially just getting off the ground, it’s easy to be taken aback by the number of unforeseen expenses that can arise.
But it doesn’t matter what phase your company is in. You’ll likely need to obtain a business loan or some other financing at some time in the future. This could assist with cash flow, update outdated equipment, or fund an expansion.
Getting small business grants in the UK can be challenging because several factors decide eligibility.
Acquiring non-repayable sources of small company grants is not difficult; all you need to do is understand how to receive grants for small businesses.
What is a business grant?
A sum of money given to either a new business to assist it in getting started or an existing business to assist it in expanding or developing is referred to as a business grant.
The funds could be used to invest in various things, such as research, education, machinery, expanding existing facilities, larger locations, or producing new employment opportunities.
However, in most cases, the money received from a grant will have to be used according to the parameters established by the organization providing the grant.
Grants for businesses are typically given out by the government of the United Kingdom, either on a national or local level, as well as by charitable organizations and private companies.
In contrast to a business loan or any other type of financing, such as crowdfunding, venture capital, or angel investment, the successful recipient of business grants will not be expected to pay this back or provide any return on what they have been given, for example, in the form of a percentage stake in their company.
This is in contrast to any other type of financing, including crowdfunding, venture capital, or angel investment.
What are the benefits of business grants?
No Cost Money
The fact that business grants are essentially free money is the most significant benefit of receiving one.
Grants do not have to be returned, which is one of the many reasons they are attractive options for commercial undertakings.
Not only that but based on the applicant’s idea, several available grants offer substantial sums of money as a reward.
Information That Is Accessible
There is a lot of information available regarding where to seek grants, how to get grants when to get grants, and who gives grants.
This accessibility is of the utmost importance because you will need to do a significant amount of research to locate the most suitable grant.
There is a wealth of knowledge and materials available to you, and this is true regardless of the sector into which you are entering the workforce.
The Impact of Waterfalls
If you have already been given one grant, you have a better chance of receiving more grants. Because you have already received this gift of money at no cost, other businesses will view you as a trustworthy person.
Establish Your Reputation
Not only will winning one grant put you in a better position to win further grants in the future, but it will also raise awareness of your organization.
The rewards gained from winning some of the most coveted grants can transcend the mere advantage of receiving free money.
In addition, business grants can promote your company and your idea, demonstrating that your work is noteworthy.
What grants are available for start-ups and small businesses in the UK?
Your idea can get off the ground with the assistance of one of the many start-up business grants that are available around the country. These are the following:
Ad: Venture
Start-up grants ranging from £1,000 to £25,000 are available to small and medium-sized enterprises (SMEs) that are either new to the business-to-business (B2B) market or have been operating for up to 36 months in the Leeds city region & West Yorkshire.
Growing Graduate Enterprise
In the Greater Lincolnshire area, graduates, or those that are soon to graduate, can potentially access start-up grants of up to $10,000 if they live in the area.
Malvern Hills Enterprise Scheme
A grant of £500 to £1,000 is available to new or young businesses in the Malvern Hills district in the county of Worcestershire if they meet the criteria of the scheme.
NBV Business Grant
There is a chance for you to apply for grants that are worth between £1,000 and £2,500 to be able to buy equipment and hire consultants to assist your business in placing your product or service in your target market.
These grants can be obtained for companies based in Greater Lincolnshire, Leicestershire, Nottingham City, Broxtowe, and parts of Gedling, Rushcliffe, and Ashfield in Nottinghamshire.
Scarborough Business Development Grant Scheme
In the Yorkshire town of Scarborough, grants of up to £1000 are available to new businesses and those who have only been trading for less than 18 months to help them get off the ground.
South East Midlands Start-up Programme
There is an opportunity to receive matched funding start-up business grants of between £500 and £5,000 if you are starting a new business in the South East Midlands. This grant can also be used to cover the development costs of your new business.
SSI Task Force Business – Start-up Fund
In the event that you are located in the Tees Valley and have been negatively affected by the closure of the SSI steelworks, you may be entitled to a start-up grant of up to £10,000.
Where can I find small business grants in the UK?
Depending on the region of the UK where you are located, several different financing and grant opportunities are available to small businesses.
Grants available to small businesses in England
On the website of the Local Enterprise Partnerships (LEP) Network, you will find a total of 38 regional Growth Hubs.
Each of these Growth Hubs can provide money and assistance to help promote your firm in the economy of your local community.
Grants for entrepreneurs of small businesses in Scotland
Depending on the region of Scotland in which you reside, you may be able to apply for a business grant from Scottish Enterprise.
Alternatively, you may be eligible for a grant from Highlands and Islands Enterprise or your local council.
Grants available to Welsh small businesses
The Business Wales website is a financing finder tool that can assist you in looking for grants that your company may be eligible to apply for.
This tool also gives information about the application procedure. You might be eligible for financial assistance from the government of Wales, the government of the United Kingdom, local governments, or charity organizations.
Grants available to small businesses in Northern Ireland
If the location of your company is in Northern Ireland, there are a variety of tools that will assist you in gaining an understanding of the grants that are available to you.
This includes government assistance, grants for innovation, research, and development, and even Invest NI Innovation Vouchers, which allow you to collaborate on an innovation project with a public sector knowledge provider like a university, college, or institute of technology.
How do I write a business grant proposal?
Executive summary
The Executive Summary is the first component in your business plan for a grant application. This will demonstrate the values of your business and how your objectives complement those of the financing organization.
Company profile
This part demonstrates how meticulously thought out your company’s operation is by breaking down its organizational structure. Increasing the likelihood that the organization that awards grants will treat your application seriously.
Describe your product or service
You will describe the product or service you are selling, how it functions, and the precise ways in which it differs from similar products already on the market in this area.
Market research
Another chance to demonstrate how your company supports the goals of the financing organization is in the market research section. You may, for instance, describe the needs of your target audience or community and how you plan to meet them.
Strategy
In this section, you’ll describe how your product will be priced and promoted for your target market to appeal more to the financing body’s ethos.
Along with describing any hazards connected to your particular project, be sure to mention your contingency plan for addressing each one. Your application’s credibility will increase as a result.
Financial projections
Your profit and loss statement, balance sheet, and cash flow statement are all included in the financial forecast.
These will help demonstrate to the committee how successful your initiative is likely to be, how much profit it will likely make, and, if relevant, how many people it will likely help.
How do I apply for a small business grant?
Before going too far in the application process, ensure you meet the general terms and requirements because each scheme is different.
Most grants are highly specialized, such as those for starting a certain kind of business or one that would aid in revitalizing a neighbourhood.
Here is some advice we have for submitting a grant application effectively.
Consult the grant body
Consult the grant awards body to determine the likelihood of your application being accepted.
Read the grant goals carefully.
Find out why the grant is being given and what it will be used for, such as hiring locals or creating eco-friendly products. Closely adhere to the objectives when writing your application for the best possibility.
Have a strong business plan
Like other forms of funding, the grant’s awards body will look for a solid business plan and samples of your company’s position and balance sheet if you’ve already begun trading.
Pay attention to how the grant will be used.
Grants are typically given for a specific project, like subsidizing the purchase of IT equipment or broadband installation. Instead of focusing on the (in this case, IT equipment) itself, use the application to demonstrate how this can help you expand your business and aid others.
Examine your funding.
Most grants will look to equal the amount you’re willing to contribute, so if you’re looking for a grant of £10,000, make sure you have a matching amount on hand.
Start to apply early.
If you do so when a program begins, your chances of being awarded a grant are higher. Early on, more financing is available and less competition to receive it. Thus grants may have a smaller pool of money to invest.
Government grants for small business
The government grants and funding opportunities for small businesses in the UK can be identified by exploring geographically.
You can search throughout the United Kingdom by utilizing the ‘Finance and assistance for your business’ page on the GOV.UK website.
This provides a listing of the many types of local financial support available to new businesses as well as small and medium-sized firms in the United Kingdom.
This covers incentives for beginning a business, grants from the government, and any other financial support that can assist you in expanding your business.
When looking for the greatest grants access to your company, it is highly recommended that you make this your first point of contact because it is such an efficient way to save time.
What is the difference between a small business grant and a loan?
The difference between a small business grant and a loan is that the grant is a flat sum of money that you do not have to pay back at all, while the loan is money that is provided to your business and that you are required to pay back within a predetermined time frame.
This is one of the reasons why they are so tempting to proprietors of small enterprises.
However, there is a catch to several of the available grants. Because of this, you might be required to comply with the organization that awarded you the grant to put the same amount of money into your company as the grant itself.
One of the other restrictions is that you must agree to let the organization that provided the financing decide how the money should be spent.
For instance, the government’s Kickstart Scheme includes money for small firms to teach new apprentices, providing that the apprentice is between the ages of 16 and 24, is receiving universal credit, and is at risk of being unemployed for a lengthy period.
When applying for certain grants, such as the one the government provided in 2021 to support projects working on the development of the DSBD software ecosystem, a company might be required to provide an in-depth explanation of the total cost of the specific project, as well as exactly how it presents value for money for the company’s entire team in their grant application.
This may be the case for grants like those described in the previous sentence.
This entails preparing to present a Sources and Uses table and a cashflow prediction to the organization providing the financing.
If you run a large company, you might be able to get away with presenting a business case that outlines how the project will be funded and how much it will cost.
The economic benefits you might anticipate as a result of its implementation.
However, the safest thing for you to do if you run a small business is to construct a business plan that integrates all of these aspects in a clear and organized manner.
FAQ-
Can I get a grant to start a business?
Yes, you can. Several grants are expressly designed for firms that have not yet begun trading, even though many grants are intended for enterprises that have been trading for one to two years or those that are more established in their field.
How do I apply for a government business grant?
Grants are available from the UK government, the Welsh and Northern Ireland assemblies, and the Scottish Parliament. If you’re beginning a company in the UK, start with the helpful Business Finance Support Finder. A comparable list of incentives is available on the Welsh government’s Business Grants website.
Do I have to pay back a business grant?
The grant recipient is not required to repay the money they were given. If an entrepreneur or a small or online firm has limited capital available for startup, development, or expansion, this is undeniably an enticing financial element to consider.
Conclusion
We have learned about grants available for new and small UK businesses to apply for in 2024. I hope reading this post will assist you in expanding your knowledge of grants available to businesses.
If you don’t have the patience to fill out an application for small business grants and then wait to find out if you’ve been selected to get it, you should look into alternative avenues to acquire the necessary cash.
