Business Grants – applying and eligibility

Business Grants – applying and eligibility

Business grants exist to help businesses develop. They are available from a number of different sources such as the Government, European Union, Regional Development Agencies, Business Link, local authorities and some charitable organisations.

Many business grants are however limited to small or medium sized enterprises, for example, if a business has fewer than 250 employees. These grants can be approved based on situations such as specific geographical areas, i.e. those in need of economic regeneration or in other cases they can be granted due to factors such as your business activity or your business sector.

England, Wales and Scotland each have their own range of grants available. The amount of money put aside for these business grants can also vary. For example an area with social deprivation or high unemployment may have more money available for grants than others.

Grants however may be and most generally are subject to restrictions in certain sectors, these restrictions are defined by the European Commission. All applications will be closely inspected by the European Commission. It should also be noted that grant bodies prefer to see specific targets and results, which are often compatible with their own objectives.

Additionally, you should ensure:

• You are ready to put up some of your own money
• You need the money for a specific purpose
• You haven’t already started the project before you get an agreement in principle of funding

Grants are normally awarded for specific purposes such as the purchasing of machinery, improving offices and increasing employment as well as developing export markets. Whilst deciding whether or not to award you with a grant the awarding body will expect a high level of commitment from you and your business.

Applying for a business grant is highly competitive meaning you have to really prove why your business idea. If you are turned down for a business grant you shouldn’t take it as too much of a disappointment in the respect that you should take on board the reasons why you were turned down. Some of the main reasons as to why business grants are turned down include:

• Your work isn’t relevant to the body who is awarding the grant
• Statements made are not backed up by facts
• Research plan is unfocused
• You are unable to prove you can match your funds
• Your need for a business grant isn’t proven
• Information in your application is not up-to-date

These are merely just a few reasons as to why your application for a business grant might be turned down. To give your business the best possible chance at securing a business grant you need to ensure that you provide the following to the organisation that is awarding your grant:

• A detailed and descriptive project of the reason you wish to apply for a business grant
• Explain the potential benefits of your proposed project
• A detailed plan that contains information about the total cost of your proposed project
• Details of your own experience and that of any other key managers
• Completed application forms where stipulated
• A possible business plan

You need to have every aspect of your business detailed and documented before you continue and apply for your business grant.

About Author

Helen is the web master of Angel Start-ups, home of all your Business Grant needs.

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