Government grants for new businesses
Starting a company from scratch is hard work, especially when you don’t have the level of capital required. Thankfully, UK government grants and funding can provide the support needed to thrive.
A business start up grant could be the key to finally getting your ideas and innovations off the ground. Whether your goals are modest or huge, the extra boost of capital could make all the difference.
Who are new business grants for?
Government grants and funding are available for companies across all industries, and we regularly support new businesses in the fields of tech, manufacturing, health and wellness, blockchain, and more. When starting a business, it’s always worth pursuing the possibility of gaining a government grant.
After all, you usually won’t pay interest or need to sign over any equity – as would be the case with most private funding – while some grants don’t ever need to be repaid. In total, there are over 200 types of grants on offer to new UK businesses (including Northern Ireland). In addition to generic funding open to all startups, there are a number of schemes aimed at specific demographics including but not limited to;
- Government grants for female entrepreneurs
- Government grants for young people (18-30)
- Government grants for over 30s
- Government grants for bad credit applicants
- Government grants for social entrepreneurs
Furthermore, businesses looking for funding of under £1million can look to Regional Growth Fund opportunities. Whatever your background, Audeo can support you through the process.
Funding schemes explained
The purpose of new business government funding schemes is to help entrepreneurs get their ventures started, removing the financial stresses and enabling business owners to focus on their ventures. The schemes also aim to boost the economy by creating new jobs.
While hundreds of grants are awarded annually, the majority fall into the main categories:
Direct Grants – A direct grant is the most common type of funding support offered to new businesses and is a cash award. Companies are often asked to provide up to 50% of the funding, along with a detailed plan on how the capital will be spent but can apply for up to £500,000 in support. There’s various options and sometimes the prince’s trust or business support grant and most suitable.
Resource Grants – New businesses often need money for training and other resources in order to develop products. Government schemes can include Innovation Vouchers, Best Practice Initiatives, and Business Support Helplines to ensure that the business is on the right track and set for the best hopes of success.
Tax Relief – Building a successful venture is hard work, but paying taxes can make it even harder. Schemes including Business Rate Relief (for premise rentals), Employment Allowance (for NI contributions), and Corporation tax Relief (for research investments) can reduce the tax rate that you need to pay.
Soft Loans – In a similar fashion to a grant, a soft loan provides you with a cash injection. However, the rates are far better than traditional funding and business loans, with lower interest rates allowing you to focus on business without the weight of a debt hanging over you. The benefit of this route is that you won’t always need to put up capital yourself.
The application process
Unsurprisingly, the local and national awarding bodies receive a lot of requests for funding each year. Unfortunately, they can’t give money and financial relief to everyone. Therefore, making the right application for the right type of funding is essential.
Ask yourself the following questions, and you won’t go far wrong;
- Does the awarding body rate your chances of approval?
- Do you have the necessary funding to match direct grants?
- What does the awarding body look for in an applicant and proposal?
- Does your business plan show potential for success?
- Does the proposed plan for spending suit the grant’s brief?
Essentially, you need to find the most practical type of government funding for your business objectives as well as one that is likely to award you the support needed. Planning and preparation are crucial features if you wish to make a winning application, and Audeo is here to help.
Take the first steps today
Whether you’re a little confused on which authority you should turn to, or you simply don’t have the time to complete an application, Audeo’s experts can support you through every step of the new business grant procedure. From matching your business to the right scheme to building the best application, our support can make all the difference. Finding a small business grant or investor an early stage business or any other type of business can be daunting.
Our experience and intense knowledge of the process gives you the very best shot at gaining the funds you need. To discuss your business in detail, including the potential funding streams, give us a call today.
