What Are Business Grants?
A business grant is a sum of money given to a business to help further the company. Governments, foundations, corporations or trusts offer grants for new businesses and small companies, which also helps the economy.
Ranging from cash grants to tax reliefs, a government small business funding grant is one of the following:
EQUITY FINANCEEarly businesses and start-ups get reductions on income tax and investments if under two years old and fewer than 25 employees.
DIRECT GRANTSThis is money given to support start-up essentials such as equipment and staff training.
SOFT LOANThese are usually government-backed loans that offer generous repayment terms that are more generous than high street banks and building societies.
Alongside Stamp Duty Land Tax refunds and R&D tax credits , many businesses are unaware of the pots of money available to them. With government business grants helping small to medium-sized companies through the key stages of startup and growth, the following are just some of the grants that might be available to you:
Regional Growth Fund
If you’re a UK business seeking funding of under £1 million, you can get support through the Regional Growth Fund (RGF). These schemes are run by organisations that have been awarded funding to offer grants/loans to eligible businesses. To have a grant awarded, your business must be based in England, have a growth plan, create or protect jobs, and invest in private capital.
Government Business Grants
Small business grants are available from the UK government, Northern Ireland Assembly, Scottish Parliament and the Welsh Assembly. Each scheme offer has its own application process and criteria for applying.
This government-funded business start up loan not only provides cash, but also mentoring and support for businesses/startups that have been trading for less than a year. The average loan size in this government grant is £6,000. The final figure is decided based on your business plan.
Applying for small business or start up grants can be quite tricky, especially with all the criteria you need to match to be entitled to funding.
We understand the agenda required to access small business grants and how to get you the money to grow your business. Often this runs into six figure sums and many business owners embark on projects using funding or company cash when there is a pot of money available to them through Grant Funding.
Get in touch with CapEx today to see if you’re eligible for a business grant and we’ll help you through the process.
This depends on the type of grant awarded. Direct Grants are given to support start-up costs and do not have to be repaid. Equity finance is a grant that comes in the form of tax relief that also does not need to be repaid. However, soft loans will need to be repaid, but are available on very generous terms compared to a high street bank.
UK Business Grants can range from an initial source of start-up funding to capital that allows your business to grow into new markets. To find out which grants you may be eligible for, get in touch with us today.