By Sasha Glasgow

A grant is a monetary aid that you don’t pay back. They are normally awarded for a specific purpose and to help establish and put ideas into practices, rather than benefit those that are already in effect. So, whether you are reading this with your business plan in hand, or during a dreamy lunch-break at work, a grant could make the difference between kicking off your business or not.

Nothing in life comes for free – and certainly not where money is concerned – so as you can imagine, it can be quite difficult to get some free money, as that’s exactly what a grant is, especially is you are applying as an individual. Bear in mind, though, that most government grants will only cover part of the total costs, so you may have to get some more money elsewhere (retained profits, friends, relatives, through a bank loan or another investor) and this varies – a research grant for example may require you to find the remaining 40% of the total cost and fund the remaining 60%.

But there are various factors that will determine the type of grant you are eligible for: your company’s location, its size, the sector of your company and its purpose.

Location, location, location
Each of the countries in the UK has its own grants, and some areas will have more grants for various reasons, such as social deprivation or high unemployment.

Trying to get a grant can be a bit of a waiting game – it can take anything from a couple of months to a year to get a decision back form a potential funder. It’s because of this that many people prefer to apply through their local council. But, as mentioned before, grants for these types of businesses are very thin on the ground.

You can, however, apply at a regional or European level. Grants are also funded through various government-supported schemes, like the Learning and Skills Council. On a regional level, a great place to start is England’s Regional Development Agency’s website (www.englandsrdas.com). This is a hub of information that provides access to straightforward information about grants on regional mini-sites. If you have access to the internet and the time to do some research, you may find a like one of Glasgow City Council’s, which offers £1,000-£3,500 grants to start-ups and existing businesses under its Women Into Enterprise scheme

If your project or business idea is going to benefit the community in some way, then there are grants you can tap into more easily. A community doesn’t have to be a town, by the way, depending on who you are applying to, and depending on the purpose of the grant, a community could mean the UK as a whole.

Size does matter
Some grants are only available to a specific size of business, which is measured by either its turnover or number of employees. Many grants are limited to small or medium-sized enterprises (i.e. businesses with fewer than 250 employees), so that’s a bonus for you.

Sector makes a difference
There are also grants and funds targeted to types of business. If your business is falls in the agricultural sector, the Department for Environment, Farming and Rural Affairs can be a good source of information. The Scottish National Heritage gives grants to projects that aim to care for the natural world and promotes sustainable use.

The National Endowment for Science, Technology and the arts provides grants for, surprise, surprise, businesses concerned with science, technology and the arts. But many of their schemes are available on a very competitive basis.

Funderfinder is a charity that provides software to help individuals and organisations search for available funding from charitable trusts. The software is free to use at local libraries. If you feel that your business could fall under the charity or social enterprise bracket, but can’t get it off the ground because you need a cash injection, Funderfinder may be a good starting point for you.

Purpose means everything
Grants can be offered to help with education, and research and development projects. One such project that combines the best of both worlds is the New Entrepreneur Scholarship. This gives those starting a business up to 90 hours of business training (courses cover the basics like market research, marketing and finance), funded by the Learning and Skills Council. At the end of the course, participants can apply for a £1,500 grant, which, if awarded, has often provided enough security for a bank loan,

W:SE and the Prince’s Trust focus on helping entrepreneurial young people between the ages of 18 and 30. Their assistance is particularly suited to those with minimal qualifications – in fact, if you have a degree, the Prince’s Trust may not be able to provide funding for you.

A forthcoming grant application can be the kick-start you need to get a business plan written. It could be the catalyst you need to get that qualification or have a trial run to see if your ideas are viable. But they must be used for their agreed purpose, otherwise you will breach the terms of the grant, and will have to pay it back – sometimes with interest. The source of the grant will determine just how much red tape is attached to the agreement terms larger organisations are sticklers for this.

Hopefully, you will not have been put off applying for a grant – the aim of this article is to show you the full picture. What would be worse than being told that it’s an easy and simple process, only to find that it is the opposite?

Knowing have a grant application to prepare for can be the kickstart you need to get a business plan written. It could be the catalyst you need to get that qualification or have a trial run to see if your ideas are viable. But they must be used for their agreed purpose, otherwise you will breach the terms of the grant, and will have to pay it back – sometimes with interest. The source of the grant will determine just how much red tape is attached to the agreement terms larger organisations are sticklers for this.

It is because of this reason that you will come across various agencies and websites (e.g. www.j4b.co.uk) that will either find a grant or enable you to search their directory for a subscription fee or a charge. If you feel like using such a service, for the convenience of not having to do all the research yourself, please bear in mind that they cannot guarantee you a grant.

Good luck!

USEFUL LINKS

• Funderfinder is packed with tips on making a budget plan to show accurate costs.
• A PDF booklet foreworded by Patricia Hewitt, All About Grants.
• The Department for Business, Enterprise and Regulatory Reform, www.berr.gov.uk, may be able to help with a business or project in an assissted areas that stimulates regional development, urban regeneration or improving employment prospects.

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