Start-ups are the new mom and pop business, with thousands of companies trying to get started. Grants are available from the government, and each regional grant provider has its own application process and criteria, but there are many ways to get funding you need for your up-and-coming company. Government-funded initiatives not only provide loans but mentoring and support for small, young businesses that are unable to seek investment from high-street banks.
To be eligible for these grants you must be trading for no longer than one year. Not only can you keep records with accounting software, start-up loans can provide free planning mentoring to ensure that applicants are in the best possible position to receive the money. Each application is considered through the needs of the business, with an average loan size around £6,000. The final size is determined by your business model and plan. With so many options, it is possible to find the best government-backed grant for you, your start-up, and your situation. Read below for some of your options.
The Prince’s Trust Grants
The specialists at the site MoneyPug, a platform to find the best UK personal loans, grants from the Prince’s trust are a way that was established in 1976 to help young entrepreneurs with grants and mentors. You must be 18-30 years old to apply. The grant is £1,500 where a business group would provide £3,000. Still this is a great way to gets started if you are young and new to business.
R&D Tax Credits
The research and development tax credit scheme is a government-backed initiative that provides significant amounts of development costs back each year. If you’re starting a new business focused on development, this loan might be the one for you. The application isn’t difficult but there are also experts who can help you fill it out. With this grant, you can claim up to 32 percent in development costs every year and includes contractor costs and staff payment.
Innovation Vouchers
Provided to those who have developed an innovative idea or product, innovation vouchers not only provide funds, they do so through expert experience. This is designed for those who need an expert from a university, consultation agencies, or technological institutions. With this government scheme, you can have up to £5,000 for external experts and consultations.
“Launchpad” Grants
In order to be eligible for a Launchpad grant, you have to be small to medium-sized business in the early stages of development. You must also be working in tech and based in an applicable geographic area. This grant is provided after a competition between companies that are looking for new and exciting ideas. The goal is to provide the means, up to £100,000, to turn them into commercial projects.
Small Business Research
Providing contracts and funding for businesses that are doing research on new products, the Small Business Research Initiative aims to fund ideas that will enhance public services. Offering from £50,000 to £100,000, there is also additional funding available, up to £1,000,000.
Smart Grants
Smart Grants are government-backed schemes that provide start-ups money for making scientific and technological breakthroughs. The proof of market grant matches 60 percent of funds up to £25,000 while the proof of concept scheme will match the same up to £100,000. Finally, the prototype development grant provides a 45 percent match for up to £250,000. It depends on the stage of your company, your finances, and what you are looking to develop, but if you are in the early stages of business and have ambitions to work in engineering, technology, and science, this might be the perfect grant.
Collaborative R&D
This government-backed grant scheme has the goal of pushing the boundaries of technology with collaborative funding to support research and development. The aim is to accelerate these programs, develop new products, and stimulate company growth. To qualify for the grant you have to be a research organization or business. Again you’ll need to be working in science, technology, or engineering industries and must be collaborating with at least one partner company. The grant can be up to 60 percent of the total cost, ranging from £25,000 to £5,000,000.
Childcare Grants
Finally, if you are looking to open up a childcare business, you can get a pretty great grant from the government. They are offering this very specific loan to help the industry become more competitive and cheaper. If you are looking to get into the childcare business, this is most definitely the grant for you.
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Founder Dinis Guarda
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