Grants for Small Business UK
Do you offer credit terms to your customers?
Have you considered using your invoices to raise finance in 24 hours? Where up to 90% of an invoices value can be obtained as a way of improving your cash flow.
Why not talk to one of our advisers for free advice and information.
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Retail businesses can take advantage of Business Cash Advances?
You can use the the cash for any business need whether that is working capital, opening additional locations, renovation or refurbishment of your premises, equipment purchases, marketing and advertising bills, additional stock purchase, PAYE, VAT, wages or any other business need you may have.
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Grants for Businesses
Please Note: The Grant application and query form are for any individual or business – UK and EU applications at present only. Questionnaires from established businesses over 2 years old, with 5 or more employees and requiring in excess of £5,000 in grant aid are welcomed.
Grants and Schemes
Funding is an essential part of all businesses. Whether your business is small and new, or large and established, adequate finance is required for the majority of projects, purchases, and expansions.
However, many small businesses find it very difficult to obtain finance, particularly if they are starting up or if they are a relatively new business. Lenders require security for loans, and many smaller businesses (particularly those looking to finance expansion) do not have adequate security to be accepted.
There are a number of grants and schemes available to help businesses that cannot find finance. The majority are locally based, with some national and EU schemes.
Here is a look at the main types of funding scheme available for small businesses, and some of the criteria you will need to meet to be able to apply.
What Types of Funding are Available ?
(i) Grants
A grant is where an organisation or authority gives a sum of money to your business to help you succeed in a particular project. Grants are given out by the government at a local and national level, as well as by other smaller bodies (such as The Princes Trust or The Arts Council). The main feature of a grant is that the money is not repayable; you pay no interest on the amount given. However, it is not free money, you will need to c arry out a significant amount of hard work to realistically have a chance of obtaining a grant. As the money is not repayable, the number of grants is limited, and competition for them can be quite intense in some areas. Grants are designed to help you succeed in a particular project; and are not available for use as working capital or generally for uses that the business chooses afterwards. Grants cannot be obtained for work or purchases that have already been made, only for future projects. Gr ants are not given for an entire project amount. Grants are mostly given using the term “Match funding”, meaning that the potential grant will be up to half of the project cost (normally between 15% and 50%). Your business will have to match the grant by providing the other half of the project costs. This helps to ensure grants are not given to risky projects that businesses are unwilling to invest in with their own money. The grant process can take several months, so you should always add extra time to your planning to ensure that a dec ision is made before you start on the project.
Some grants are labelled as Enterprise Grants, these are similar to normal grants, but are usually aimed at growing businesses in Enterprise areas of the UK.
(ii) Enterprise Finance Guarantee
The Enterprise Finance Guarantee (EFG) is a targeted measure intended to facilitate additional commercial lending to viable SMEs unable to obtain a normal commercial loan due to having no or insufficient security.
The Enterprise Finance Guarantee (EFG) is a targeted measure intended to facilitate additional commercial lending to viable SMEs unable to obtain a normal commercial loan due to having no or insufficient security. EFG facilitates lending that would not otherwise be available by providing lenders with a partial guarantee.
Eligibility
EFG can be made available (at the lender’s discretion):
- to small and medium-sized businesses in the UK with an annual turnover of up to £25 million
- to businesses seeking loan facilities of between £1,000 and £1 million
- for terms of between three months and ten years
- for an eligible loan purpose
- Loans for most businesses purposes to businesses in most sectors are eligible.
You can visit Business Link for further information and help Small Firms Loan Guarantee
Article Index
- Grants for Small Businesses
- Do You Qualify for a Business Grant?
- Finding and Applying for Business Grants
- Related Articles
