Are you eligible for a grant?

Getting a grant can give your business the financial boost it needs to grow. However, finding out what's on offer and how to apply can be tricky. Tom Whitney explains how to increase your chances of success
With a combined value of £50 billion, there are more than 4,500 grants available to businesses in the UK. SMEs qualify for 96 per cent of business grants. Grants are almost always awarded for a specific purpose and are usually paid at an early stage of a new business development, not for work in progress.

Grants are usually match-funded, meaning that for every £1 you get in grant, your business has to match it with £1. "Don't waste time trying to get a grant unless you are prepared to put up some of your own money," advises Paul Scott, director of Grimsby and Cleethorpes Enterprise Agency. "Grants typically cover 15 to 50 per cent of the finance of a project.

"Grants vary enormously across the country - from penny-pot funds to the European Regional Development Fund" adds Scott. "There are also charitable foundations - such as The Prince's Trust and Prime [an organisation for the over-50s] - which give grants to individuals who meet their qualifying criteria."

The main factors that decide your eligibility for grants are:
  • The location of your business. (Some deprived areas get extra grants because of high unemployment.)
  • The size of your business. (This is calculated by turnover or the number of employees.)
  • Your industry sector. (Funding is restricted in certain sectors.)
  • The purpose of the grant. (Grants are often awarded for a specific purpose such as buying machinery, improving offices or developing export markets.)
Grant searches

Contact your local chamber of commerce or Business Gateway for help with searches. You can also register with a grant database such as j4b, which, for a small annual fee, will email you changes in grants that match your company profile each month.

Contact the organisation who awards the grant; many funds have helplines for applicants which give tips on how to apply. Before you apply, ask basic questions, such as whether funds are still available, when grants are allocated and what the application process involves. Advisers may also help you complete the application form.

Application tips

When you apply for a grant, you must have a specific plan which ties in with the strategic direction of your business, as outlined in your business plan. You will also need to show the fundholders:
  • An explanation of the potential benefits of the project.
  • Details of your relevant experience.
  • A completed application form where stipulated.
Be prepared to wait for anything from a few weeks to as long as a year for a decision, although local applications are usually processed faster. If your application is declined, ask for feedback. While you may not agree with the reasons given, the feedback may help you succeed with future applications.
  • Find your local chamber of commerce on the BCC website www.chamberonline.co.uk
  • Use the 'Grants and Support Directory', a free service that allows you to search a database of national, regional and local government programmes, on the Business Link website www.businesslink.gov.uk/bdotg/action/gsd?r.s=sl
  • To find grant listings, visit the j4b website www.j4b.co.uk .Register free to search for funding and receive a monthly newsletter. (Full subscription is £20 per year.)