As a small business owner, getting any sort of grant is an exciting prospect as unlike business loans, small business grants do not need to be paid back.

Winning a business grant could help boost your business growth in many ways, for example you could buy equipment, renovate your business premises or have the income to hire more staff.

Where can I find business grants?

Small business grants are usually funded by the private sector or the government.

Usually grants are designed to resolve a specific social or economic issue faced by a wide range of small business owners and as a consequence may have plenty of competition vying for the grant funding pot.

Another disadvantage is that invariably the application process for applying for grants can be administrative, but obviously well worth the effort if it gives you the competitive edge you are seeking in your business.

Different types of small business grants

There are various types of small business grants you can look out for.

Equity finance

Equity finance grants are very sought after as they offer new businesses reductions when it comes to their investments and income tax. Your business may be eligible if it’s under two years old and has fewer than 25 employees.

Attract investors

In the UK, there are several types of schemes aimed at raising money by offering investors tax relief if they invest in your business:
Enterprise Investment Scheme (EIS)- You’re able to raise up to £5 million per year with this scheme.
Seed Enterprise Investment Scheme (SEIS)- Like EIS, but is geared more towards small businesses as the maximum employee number for this scheme is 25.
Venture Capital Trust (VCT)- This scheme allows businesses to gain capital through long-term investments, in which the investors are offered significant forms of tax relief.

Direct grants

Direct grants are especially advantageous to brand new businesses as these grants are designed to cover some of the essential start-up costs, such as buying equipment, investing in the proper staff training, and sales and marketing.

Flexi-loans

Although strictly not a grant, flexible loans look like flexible credit for your business. However, when you take out a loan you may have slightly more freedom to do what you want with the money than you would with a grant.

Flexi-Loan can be a great boost to your business if you’re looking for funds to grow your business or looking to manage cash flow in the short term.

One provider is Iwoca if you want to learn more.

Small business grants currently available

**Governemnt Apprenticeship Scheme**

Your business may benefit from hiring an apprentice. Employing an apprentice gives you the opportunity to teach someone all the skills involved in your craft or trade.
Fortunately, the UK government has multiple grants in place to encourage you to employ an apprentice and expand your business. You are able to claim as much as £4k from the government when you hire an apprentice.
Almost any type of apprenticeship is eligible for this type of funding.

The Prince’s Trust Enterprise program

The Prince’s Trust offers development awards aimed at helping young entrepreneurs get their businesses off the ground, and the type of assistance that is mostly offered is training courses.

In order to be eligible, you need to be between the ages of 16 and 30 and live in the UK.

You’ll also need to be studying less than 14 hours per week if you are currently being educated.

If you are employed, you’ll need to work less than 16 hours a week.

The type of support you can get from this program includes course fees, equipment, tools, job licenses, and transport to your new job.

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