The Truth about Small Business Grants

A Home Business Article Contributed by Elizabeth Fox-Wise

Are You Missing out of Small Business Grant Money?

If you own a small business or are thinking of starting one you may be wondering whether you can obtain any help from the government.

You may be aware of others who have received small business grants, or you may have seen reference in the press to grants available for small business. If so, you may rightly be asking "What about my small business? "

Finding out information on small business grants can be a daunting task to say the least, even for experts. At any one time there are hundreds of different schemes in operation. Complications arise for researchers because the schemes are offered by thousands of "awarding bodies" and the fact that these schemes are constantly changing, with some lapsing and new ones arising.

However, the good news is that most small business is eligible at any one time to apply for a number of different grants. The problem is that no one will knock on your business' door to invite your company to apply! The responsibility is yours to find out what's available, and to try to keep current with this information.

Two Different Types of Small Business Grant Programs

There are two different types of small business grants - one kind must be repaid the other does not need to ever be paid back. Be sure you understand the difference and which kind of grant your small business is applying for.

The one we most often hear of is the Small Business Direct Grant. This Grant money does not have to be repaid.

This is a cash payment to a small business, which may be offered for activities such as Training, Employment, Export Development, Recruitment or Capital Investment projects.

It is rare nowadays to obtain 100% grant funding. Most schemes require the recipient company to put up a proportion of the cost, with 50% being typical. Some schemes state maximum amounts in absolute terms, others have no limits.

The other type is a Small Business Repayable Grant. As the name implies this grant money may have to be paid back.

This is where cash funding is offered for a project with the intention that the sums are repaid out of future revenues. This grant; however does not have to be paid back in the event the project fails.

Applying for a Small Business Grant

It is always recommended that you make personal contact, if at all possible, with the grant provider before completing the application documentation.

Before you apply for a small business grant, make sure you have the following arrangements planned or in place:

You have matching funds available to meet any grant you may receive (see information above)

You can describe your plans as a Project

You have a well written Business Plan

Generally, the more "local" the awarding body, the quicker you are likely to get a decision on your small business grant application.

Applications to your local or state authority, for example, are likely to be resolved in a matter of days or weeks. National bodies will take longer, perhaps several weeks, to decide.