The use of grant assistance and subsidies is growing in importance for UK businesses and should be considered an integral part of capital funding and strategic financial decision making.
A grant is a sum of money awarded to an enterprise for a specified purpose. Projects cannot obtain 100% grant funding. Contributions can range from 10% to 35% depending on circumstances and eligibility criteria. If the terms and conditions of the grant offer are adhered to, the money will not have to be repaid. Grant awards are discretionary, so it is essential that successful applications address the scheme criteria, e.g., Location, Additionality, Prior Start, Jobs, Productivity and Skills, Viability and Sustainability and Funding.
Grant Funding is available from a number of sources: the Government, European Regional Development Fund (ERDF), Regional Development Agencies, Business Link, Local Authorities and some charitable organisations.
Grant funding can assist businesses to improve the design, manufacture and delivery of quality products and services, promote technical innovation, enhance competitiveness, and implement new technology. There must be no prior commitment to the project otherwise it will be difficult to establish the need for grant assistance.
Regional Growth Fund
The Regional Growth Fund is a discretionary £1.4bn Fund that will operate for 3 years between 2011 and 2014 to stimulate enterprise by providing support for projects and programmes with significant potential for creating long term private sector led economic growth and employment. In particular it will help those areas and communities that are currently dependent on the public sector make the transition to sustainable private sector-led growth and prosperity.
The application threshold level for this fund is £1million, so it is aimed at large projects.
Grant for Research and Development
The grant for Research and Development (Grant for R&D) scheme opened on 4 April 2011. This new scheme replaces the old regional development agency Grant for R&D.
The Grant for R&D scheme will support SMEs carrying out R&D which offers potentially significant rewards and that could stimulate growth. Three types of grant are available:
- Proof of market grant - up to £25k
- Proof of concept grant - up to £100k
- Development of prototype grant - up to 250k
Pre start-ups, start-ups, and small and medium-sized businesses from all sectors across the UK may apply for the Grant for R&D programme
Interested? Contact MCS Corporate « Capital Grants »