What are they?

Grants are one-off payments to companies undertaking specific projects or requiring help towards the costs of a specific area of business. Grants are provided, in the main, by local authorities, the Government and the European Union.

Why choose grants over other forms of finance?

If you’re seeking finance for your business grants should be your first consideration. Why? Because grants are the most palatable form of business finance: in general they will never have to be repaid and come free from interest and dividend charges.

However, if certain criteria are not met the provider of the grant will have the right to demand some, if not the entire grant, be repaid.

WHAT GRANTS ARE AVAILABLE TO BUSINESS?

Regional Selective Assistance

Regions in industrial decline with high unemployment can claim Assisted Area status. Businesses operating in these areas can qualify for grants.

Enterprise Grants

Small business can get up to 15% of their capital costs with a ceiling of £75,000 under this scheme which operates in certain areas of England. The scheme helps businesses with projects that are too small to be covered by Regional Selective Assistance. Businesses in Scotland can apply for up to £100,000 under a new Assisted Areas scheme.

European Structural Funds

Government bodies throughout the UK provide grants to new and small businesses specifically aimed at promoting competitiveness in Europe.

Smart Awards

This is run by the DTI to help SMEs improve their performance through the development of technologically innovative products and services.

Public Understanding of Science Engineering and Technology

The Office of Science and Technology provides grants specifically for projects promoting the understanding and awareness of science, engineering or technology.

The Prince’s Trust

This is specifically targeted at unemployed young people (aged between 18-29) to help them start up in business. It fills a finance gap for individuals who would otherwise have difficulty obtaining finance through the conventional routes.

Livewire

Sponsored by Shell, Livewire is another grant aimed specifically at young people to help them start a business. Support and cash grants of up to £200,000 are available.