Finding a grant for your business
02-05-2007
Grants and how they work?
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.The main feature of a grant is that the money is not repayable; you pay no interest on the amount given. However, you will need to carry out a significant amount of hard work to realistically have a chance of obtaining a grant. As the money is not repayable, grants are very desirable, and therefore always over subscribed.
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.
Grants are not given for an entire project amount, and you will be required to match any grant sum allocated to you with an equal amount of your own money. This helps to ensure they 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 decision is made before you start on the project.
Grants for Small Businesses
Grants for small businesses tend to come from government based sources, although there are some charitable organisations that run similar schemes. The latter is particularly worth looking into if you are part of a young team of people just starting out in the business world. It can be very difficult, to keep up with the large number of different grant schemes available, but below are a few options you may wish to consider when financing your business
Funding from the government
The government provides support to businesses both financially, in the form of grants, and through access to networks of expert advice and information.
There are some government grants available for businesses but their criteria are very specific and conditions vary. Getting financial support can be tough, and there will be strong competition.
The Grants and Support Directory (GSD) allows you to search for potential sources of help with starting up or business development. The database contains grant and support schemes from central and local government as well as private organisations. Some of the schemes offer financial assistance, while some offer free or subsidised services ranging from advice through to practical involvement with projects. While many schemes are available nationally, some are targeted locally. Depending on your location, type of business and what you need the funds for, you may be eligible for a number of schemes in the GSD.
Applying for a grant can be a highly complex process. You may want to contact your local Business Link for help and advice with your application.
Other grants available
The Department of Trade and Industry recommends the Prince's Trust and as possible sources of finances and advice for people aged between 18 and 30 wanting to start up in business. The Prince's Trust can help with low interest loans, grants, legal advice and help from a business mentor – to qualify for this help an applicant must be unemployed or in a part-time or inadequate job, and be unable to get funding elsewhere.
| Website: | www.princes-trust.org.uk |
| Contact: | The Prince's Trust – Head Office |
| Address: |
18 Park Square East
|
New Entrepreneur Scholarships can also help with training, advice and initial funding for new businesses in disadvantaged areas.
| Website: | www.nfea.com |
| Contact: | National Federation of Enterprise Agencies (NFEA) |
| Address: | 12 Stephenson Court Fraser Road Priory Business Park Bedford MK44 3WH |
| Tel: | 01234 831 623 |
| Fax: | 01234 831 625 |
| Email: | Nesadmin@nfea.com |
Why a grant application might be turned down
Grants are often turned down because the application is ill prepared. The most common reasons include:
· the area of research/work is not relevant to the body awarding the grant
· the explanation of how research ideas will be translated into an achievable plan of action is unsatisfactory
· the proposal or application makes statements that are not backed up with supporting facts
· the research plan is unfocused and lacks clarity
· the impact of the work on the wider community/industry has not been communicated effectively
· the information provided in the application is not up to date
· the importance of the funds to the project's success or failure has not been made clear
· the applicant is unable to prove they have matched funds
· the need for grant support is not proven
A few pointers to avoid the pitfalls of the above can be found in the Top Tips section of the FashionCapital website.
By Martin Huckle
