Government Grant

Businesses might be eligible for a government grant if their business activities contribute to a desirable social cause, such as the creation of jobs in deprived areas, or environmental protection. Businesses involved in research and development can also qualify for UK or EU grants, but these grants tend to be difficult to obtain.

One difficulty with the grant process is that it may take several months before you receive any money, which can be a crucial if your business is in difficulties. Furthermore, you may be required to have a certain amount of money available to 'match' the amount which the government is willing to lend, and there are often a number of conditions regarding how the money can be used.

On the other hand, if you do qualify for a government grant you are unlikely to have to repay the amount which you are given. Grants can be a significant boost to the growth and stability of a struggling business, helping to save investment and jobs which may be lost without financial support. Depending on the reason for your application, the grant that you receive will typically range from between one and five hundred thousand pounds.

In order to apply, you will need to put together a convincing business plan, just as you would for any other loan application. The exact application process will depend on the local, governmental or EU department to which you are applying, but it is likely to consist of an initial application made directly to the lender either online or by post, and a follow-up interview.