Grants

Grants are non-repayable sums of money awarded by the government or other organizations for specific projects or purposes. At AHACCOUNTANTS, we can assist businesses in the Nottingham area in finding suitable grant funding sources and help develop comprehensive business plans.

Understanding Grants

Adequate financing is crucial for any business, whether you aim to expand, undertake a specific project, or cover daily expenses. However, securing funding can be particularly challenging for small or recently established businesses due to limited security options.

A grant could be the solution.

What Is a Grant?

A grant is typically awarded to cover a portion of your project costs (usually between 15% and 50%), requiring the business to finance the remainder. One key advantage of a grant is that it does not need to be repaid, provided the terms and conditions are met. However, competition for grants can be intense, and their availability is often limited.

While the concept of grants seems straightforward, navigating the multitude of schemes can be daunting due to their constant changes and variations in eligibility criteria. Grants are distributed by various governmental ministries, departments, and agencies at both national and local levels. Importantly, grants are generally for proposed projects only, so it’s crucial to wait for approval before commencing work.

For initial research into grant availability, you can visit Gov.uk’s Business Finance Support Finder.

Is My Business Eligible?

Eligibility for grants varies widely. Some schemes are open to all businesses, while others may consider factors such as:

• Geographical Location: Certain schemes target areas of social deprivation or high unemployment.
• Size of Business: Many grants are designed specifically for small and medium-sized enterprises (SMEs), typically defined as having fewer than 250 employees.
• Industry Sector: Some grants address specific challenges faced by particular industries.
• Purpose of the Grant: Grants are often designated for specific objectives, such as purchasing new equipment or creating jobs. Grant bodies usually seek outcomes aligned with their own goals.

Applying for a Grant

Before Applying

Initial research is essential to understand what grants are available. Make sure you:

• Have funds available to match any potential grant (if required).
• Need the grant for a specific project or purpose.
• Have a well-structured business plan.
• Refrain from starting the project before receiving grant approval.

Making the Application

If possible, establish personal contact with an individual involved in administering the grant scheme. This can provide insight into whether it’s worth proceeding and may yield helpful advice on the application process.

It’s advisable to apply as soon as possible after a grant scheme launches, as funds may be more plentiful early on. The application should focus on the project, detailing its potential benefits and including a comprehensive plan with costings. Ensure your application aligns with the scheme’s objectives, and be prepared to submit a business plan demonstrating that the project depends on grant funding and that you have matching funds available.

Hearing Back

The response time can vary from a few weeks to over a year. Applications are typically evaluated based on various factors, including your approach, expertise, innovation, and need for the grant.

Common Reasons for Application Denials

Applications may be rejected for several reasons, including:

• The industry sector is not relevant to the grant-awarding body.
• The plan was insufficiently detailed or lacked clarity.
• The necessity of the grant for the project’s success was not adequately communicated.
• Matched funds were not available.

If your application is unsuccessful, be sure to request feedback. This will help improve your chances in future applications.

Conclusion

Grants can be a vital source of funding for your business. If you are in the Nottingham area and are considering applying for a grant, AHACCOUNTANTS is here to assist you in navigating the process and ensuring your business plan is solid and competitive.