A grant is a sum of money given to an individual or business for a specific project or purpose. A grant will cover only part of the total
costs involved - the remainder should be provided by you.
Grants to help with business development are available from a variety of sources, such as the government, the European Commission and
some charitable organisations.
These grants may be linked to precise areas of business activity, such as exporting, new product development or training, or a specific
industry sector. In addition there are some grants that are linked to specific geographical areas, because for example they are in need of
economic regeneration.
This guide introduces you to some of the grants available to businesses in the UK, and outlines the kinds of projects and organisations
they are available to. It also provides some hints on how you can improve your chances of being awarded a grant.
The realities of government support:
The Government provides support to businesses financially, in the form of grants, and through providing access to networks of expert
advice and information.
However, getting financial support can be tough. There may be strong competition, and the criteria for awards are stringent. These vary
but are likely to include the location, size and industry sector of the business.
Grants are almost always made for a specific purpose or project and may be for proposed projects only - not for those that have already
started.
There are also strict terms and conditions that apply to all grants. If these aren't followed, immediate repayment of the grant is
usually required. However, generally you do not have to repay grants unless you break the conditions, and you do not have to pay interest
on them.
Matching funds: Most grants require you to match the funds you are being awarded. In other words, the grant covers a proportion of the
money needed, while you supply the rest. You must prove that your business has or will receive your part of the funds required.
The amount of matching funds asked for varies from grant to grant. A research grant may require a business to find only 40 per cent of
total cost with 60 per cent provided by the grant. However, a grant to refurbish a factory may provide considerably less.
The matching funds may be found from the owners of the business, retained profits, a loan, or from a new investor.
