What to Know About Government Grants for Your Business

by Josh Biggs in Finance on 9th December 2020

Government grants and other financial support comes in handy to many people. However, you need to have information and knowledge that relates to this financial support that the government is offering as grants. Therefore, whether it is for your business, studies, or any other financial support you need. Get to know what makes you eligible to get it. There are so many grants that you can choose from, and you need to break them down if you want to try out for one. Below are things to know about government grants for your business. 

Understand what is a government grant 

A government grant is simply the amount of money that your business receives from your government, and you do not have to repay it. This sum of money is to help in the development of your business, most often for a specific purpose. Once you figure out what is necessary to get the government grants, go ahead and apply. Whoever gets the grant benefits from it as it is non-repayable, and you pay no interest to it. If you take it for your business, you will not give away equity, among other things. 

Finding the right grant for you 

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There are over a thousand types of grants that you should choose from, so how do you find the grant that suits you? Firstly, you can check through your government’s page on grant issues. Here you will be able to filter by industry, business size, and also the support that you need from them. Also, there are nationwide grants that are types of local grants that the governments facilitate, that helps is supporting various startups. Besides, you can get grants that are not of the government though companies which the government support to offer a loans scheme, but you pay them back with low interest.

Does is it fit your business 

Is the grant that you seek the right one for your business? This is an important question as you have to consider some things. For instance, applying for it can be complicated and time-consuming, so you need to sacrifice a lot of time. Also, they are very competitive, and it is best to have a plan B. It will also not cover all your costs, and you will have to use other sources of funding. Notably, grants come with conditions, especially on how you should use the lump sum that you receive. So how you spend and money allocation to your business is under conditions and not just about receiving the sum. 

Know if you are eligible 

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Always check your eligibility for the grant. However, whether you are eligible or not depends on certain factors. For instance, the grant purpose, that is, having a clear idea of how you intend to use the grant. Know the industry type that you are in, as many grants are industry-specific. The business classification and size is another factor as the grants you seek may be available to only limited companies, or if you are a business with a certain number of employees. The location of your business, for example, can be a factor to know if you are eligible, among other factors.

Areas that win most grants

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Some areas of business receive grants more readily available to them, for instance, in the environment and energy sector. Also, a business that aims to become environment friendly does win these grants. Businesses that deal with exports too can have a grant readily available to them as they aim to improve trade links for the government’s business. The innovation industry is a no brainer. Since it helps maintain the competitiveness of the fast-evolving global tech market. So grants give them a boost to help them keep inventing. 

Requirements you always need

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A grant for your business always needs a business plan. Not only a business plan to help you stand out from the other competitors, but one that shows a guideline of how you can achieve your aims, also, it is a requirement to help the accessor know how you will spend the money and where the money will go. Do your research in advance and be as detailed as possible so that you also build a strong case for you to win the grant. 

Categories: Finance