Winning government grants
Article Date: Sep 08 2009
The government offers a range of grants
Working out which grants your business might be eligible for is a time-consuming task in itself. Here’s a breakdown of what’s on offer, courtesy of Victoria Wiesener, programme manager of investment readiness scheme Gateway2Investment (g2i).
High-street banks have traditionally played the most important role in providing loans and overdraft facilities to ambitious, growing companies. However, in spite of the government-backed Enterprise Finance Guarantee Scheme being introduced, banks are still reluctant to lend as freely as before as their exposure is not fully covered. Those businesses that do win funding often find the terms are more onerous and that the amount they are able to raise is not sufficient for their needs.
For these reasons, grants are an increasingly attractive proposition for cash-strapped companies. A grant can be an ideal way to raise cheap money as it typically does not need to be repaid. However, it can be very difficult to access grant funding as each provider has its own requirements and application process, often accompanied by extensive red tape. Once you’ve navigated through the application process, there is also likely to be fierce competition for the funds. In many cases, the terms of the funding may require the company to obtain matching private investment, or sometimes the business may be required to share technical results or intellectual property with the grant provider.
If you decide to seek grant funding, even finding out what grants you may be eligible to apply for can be a time-consuming process. There are many types of grants available – which ones are applicable to you depends on the region, industry or particular area of expertise the grant provider is seeking to promote.
Knowing where to look is key. Companies are advised to use the various grant databases available on the internet, such as Business Link and Grantfinder, to research availability against their particular needs. This will identify not just current sources of grants, but also those likely to appear in the next few years.
Here is a guide to the various kinds of grants available:
Regional basis
- The Selective Finance for Investment and Regional Selective Assistance schemes offer grants for businesses in some areas of East London (and other designated Assisted Areas of the UK). Grants are provided to support companies considering opening a new facility or expanding/modernising an existing facility within the area and is linked to factors such as the number of jobs created and/or safeguarded. To find out more, contact the relevant regional development agency
- Translation grants for publishers provide the means for foreign publishers to translate Welsh literature into English or other European languages in order to promote the literature and writers of Wales abroad
Industry basis
- Centre for Defence Enterprise offers feasibility funding up to £250,000 in any areas with potential defence applications
- The EU-led ICT Policy Support Programme, the successor to the eContent Plus Programme, is to provide grants to businesses facilitating access to digital content, for example through "digital libraries" or web translation projects
- PRS Foundation Awards for New Works offer support to those wishing to commission a new piece of music from UK based music creators
Specialist areas of expertise
- Bio-Energy Capital Grants provide grant funding to support the installation of biomass-fuelled heat boilers and biomass-fuelled heat and power equipment
- The Grant for Research & Development initiative supplies funding to help SMEs to research and develop technologically innovative products and processes
- The Carbon Trust can make funds available to businesses and other organisations working with technologies which have the potential to reduce UK carbon emissions (or provide companies with interest-free loans to install energy-saving equipment)
- Other organisations such as Access to Work help companies fund any extra employment costs that may result from an employee having a disability
- There are many government-led initiatives, such as London-based Knowledge Connect and the Technology Strategy Board’s Innovation Platforms, which aim to link up universities with entrepreneurs to promote the commercialisation of research. Healthcare start-ups could also look at the wide array of projects led by the Wellcome Trust
Finally, it is also worth looking into awards schemes such as HSBC Start-Up Stars, which reward those who have turned a business opportunity into a success, or nominate your company for a ranking of fast-growing businesses in a national newspaper (such as The Sunday Times) or business magazine (like Business XL). These schemes will also have the additional benefit of valuable PR for the winner, which is a bonus when trying to stand out from the crowd in today’s competitive economical environment
A recent publication by Gateway2Investment, the Guide to Funding for Early Stage Companies, lists many sources of funding and resources for those seeking to access grants, and is available to download.
