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Business financial assistance in the form of business grants to help you start off a business or take on certain projects can present much-needed finance and sometimes expertise to assist your business develop. Business grants are obtainable for a number of business activities or projects and embrace many business sectors.

Business grant funding is planned to support and improve enterprise in the hope that it will also provide a boost to employment and the local economy. A range of organisations and government departments propose business grants and as a small business, you may perhaps be eligible to access some of these.

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What is a business grant?

A business grant is financial assistance, usually to start a business or for a special project, which is given to your business by an awarding body. Business grants supply finance to allow your business to undertake a special assignment that, devoid of financial help, would not be able to carry on. Such a assignment might include the initial start up of the business, developing a new product or buying apparatus.

A business grant is commonly a one-off payment and provides finance that covers a % of the overheads of the assignment - customarily, you or your business will have to endure some of the costs too. Unlike a loan, a grant does not usually have to be repaid, unless you fail to adhere to the particular terms and conditions of the proposal.

What can you get a business grant for?

Business grants are to be had for a variety of schemes, but each particular scheme will offer funding for a certain use. Whether you make the grade for a business grant can also depend on factors such as the form of business you manage, the magnitude of your business, whether the assignment will generate jobs and where your business is located.

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Business grants may be offered to encompass one or more of the following activities:

Advertising, marketing and promotion.
Business expansion and relocation.
Business start up and market testing.
Investment in capital equipment.
Co-operatives and community enterprises.
Product design.
Environmental improvements.
Exporting.
Improving business premises.
Information technology (IT) and e-commerce.
New technology and innovation.
Recruitment and training.
Research and development (R&D).
Security.

It is worth noting that business grants cannot ordinarily be used for operational capital or simply the organic growth of your business.

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Will you be eligible for a business grant?

Most business grants have strict eligibility criteria or certain exclusions, for instance for particular locations or industry sectors. Although individual schemes vary, there are some familiar themes across most grants.

Various areas have their own grants or particular schemes targeting social deprivation or high unemployment. Extra business grants are only offered to businesses of a certain size, measured by revenue or the number of employees.

A number of sectors, including ship building, steel and coal, transport and agriculture, are subject to exclusive restrictions. Manufacturing businesses are more to be expected than others to meet the criteria for grant support, while retail businesses are least likely to qualify.

Most business grants are not obtainable looking back. For instance, if you are planning to start a new business you ought to apply for any suitable grants well in advance of the date you intend to start trading. You will not usually be eligible for this sort of funding if you have already started to trade, and if you have already purchased the paraphernalia you are seeking a grant for it is unlikely that the application will be considered.

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Who offers business grants?

Many publicly funded groups provide financial assistance to businesses. The awarding bodies for grants may be by worldwide, continental, national or local organisations.

How do you apply for a business grant?

The grant application process will differ from scheme to scheme. However, these are some of the general stages that will apply to most situations.

Before applying:

To find out what business grant funding is available in your area and for your particular project one of the best places to start is your local SBA or Business Link. Most will have a directory of assistance available locally, nationally and at a continental level. Advisers will be able to put you in touch with the relevant grant awarding bodies and will be able to help you through the application process.
Contact the awarding body and check your project meets the specified eligibility criteria of the scheme to find out whether it is actually worth applying. Grant application forms can be lengthy and may take a lot of time and effort to complete. It is important to find out whether it is worth pursuing the application in the first place before you proceed. Ask the awarding body to send you an application form and more detailed information about the grant.
Remember you will be required to prove that your business has a genuine need for grant assistance.

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Most schemes will require you to supply a project plan or proposal, or frequently a business plan providing:

A project description detailing the aim of the project and how it will benefit your business.
Who will run the project, and what experience, knowledge and skills they have.
The total cost of the project, and how much money is required.
The length of the project and key deadlines.
The location of the project.
Why the project needs grant funding and what would happen if the support wasn't provided.
How you intend to fund your share of the project's costs.
How the project complies with the criteria set by the grant provider.
Details about your business, when it was set up, its activities and so on.
Financial information about your business. This might require the submission of accounts and forecasts.

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