Granted! Simple Guide To Getting A Small Business Grant
Governments want to see small businesses grow. Successful small businesses are an asset to governments and to the local economy. It is for this reason that the government encourages small business to thrive. To do this, they offer grants to small business. These grants can save the small business owner money. Grants for small businesses also have the ability for small business owners to lower their start-up costs. Lower start-up costs mean small business can focus on increasing sales and therefore increasing their business.
Government grants can be used for paying rates and hiring premises and even buying and installing a bigger plant for your workshop. Interestingly there are more than 200 different types of new and small business grants available to business owners in the UK. You just need to find the one which suits your business best.
“Although there are many different grants available to business owners, accessing these can be challenging. The process of applications can often be complex featuring numerous stages and processes which need to be followed,” says Niels Larsen of Persian and Modern Rugs. He adds that business owners need to be aware that each and every different grant will have its own set of unique requirements when applying for.
Here is everything you need to know about getting a small business grant from the government:
Step 1: Finding a new business government grant
If you are looking for a grant, your first port of call would the government’s website. There you’ll need to locate the finance support finder. There you will find a list of all the new and small business grants available to you. You then need to select the one which best suits your needs and the needs of your business.
Step 2: Grant types available
There are all forms of new and small business grants. Everything from equipment and cash awards to reducing overhead costs. Each one is carefully designed to help you grow your business. For the most part, there are three main forms of grants; equity finance, soft loans or direct grants.
• Equity Finance
These are not your typical grants but more of a seed investment into your business. In this form, you will be offered a reduction on income tax for all investments in your business. To qualify for this investment, your business should employ less than 2 people and be less than 2 years old.
• Soft Loan
These options are very similar to grants. Through soft loans, the government grants the business a loan which would be paid back with a lower interest rate over a longer term.
• Direct Grant
Through this option, your business will be given the grant to cover any start-up needs and essentials. Items which fall within the category include training and equipment. The business will have to provide half of the grant.
Step 3: Apply
Your very first step in applying for a government grant is making sure that you meet all the relevant requirements. For the most part, the grats are very specific and will have specific goals in mind. The top of this list is the betterment of the community. To make sure you are on the right track, you need to sit down and have a serious chat with your local grant body. Next, you need to thoroughly read through the grant objectives.
You need to now make sure that you have a fantastic business plan you can show to the grants body. They will decide whether you succeed or fail in your application. You need to make sure that you place focus on how you will use the grant. The body will want to see where the money is going and you need to be able to show them, down to the last cent. It is important to note that you will have to start your application process early. While there are many grants, they are limited. An early start means you’ll have a better chance of landing your investment.