Grant Finance

Grants are sums of finance given out by organisations or authorities to help businesses succeed in a specific project. Grants do not need to be repaid, and as such are very difficult to obtain.

Grants are usually awarded on a ‘matching’ basis, where they cover up to half the cost of a project; and you cover the rest. They are not available for cashflow, or to cover items that have already been purchased.

Some organisations that provide grants also provide ‘soft loans’ with a minimal rate of interest; available on similar terms to grants, mostly to businesses in areas with high unemployment.
 

What Grants are Available?

If your business is planning to create jobs then you are much more likely to find grants you can apply for. ‘Assisted areas’ tend to have more grants available (usually poorer areas); and many limit grants to businesses with smaller numbers of employees. Manufacturing tends to have more grant opportunities than other industries, although the criteria will vary for each potential grant.

Where to Go For Grants

With most grants you apply directly to the organisation funding them. The main groups who fund grants are the government, the EU, regional development agencies, local authorities, business link and Chambers of Commerce.

To find available grants there are several useful sites, including Business Link, J4B, Business Gateway (Scotland), and Business Eye (Wales).

You can get more information on grants in our Grants for Small Businesses article here.