Grants for Business: A Quick Guide on Type of Funding
You may have heard the term ‘business grant’ and wondered about how you could get one if you run your own business.
A business grant is a sum of money awarded to a company to help it develop and grow. You could use the money to invest in training, purchase new equipment or even reach new markets. Unlike a business loan, a grant does not need to be repaid. We have put together a few pointers on the types of funding you can apply for and how to go about doing so.
R&D grants and R&D tax credits
Research and development grants allow businesses of any size to access funding for the development of new products, services or processes to bring them to market. The result of this might be a new consumer device, medical treatment or software. They are usually offered by the government or universities and are ideal if you are looking to accelerate your growth or simply need funds to conduct more research.
The R&D Tax Credits Scheme rewards businesses for solving problems and sharing their solutions for the benefit of everyone. Whenever you spend money on an R&D project that qualifies, you can get a cash reward of up to 33% of the qualifying costs back or a reduction in the amount of Corporation Tax you will have to pay. When your claim is approved you can choose whether your business receives a refund or future tax relief.
Innovate grants
Innovation or innovate grants for business are offered to help companies grow through the development of promising ideas that change communities and the systems that we use every day. Organisations such as Innovate UK work with many partners to shape integral parts of society and give everyone the chance to participate. Innovate grants usually offer £200k to £2m of funding and are very competitive, so you will have to make a strong case.
EIC accelerator grants
EIC grants are specifically designed to support tech-based SMEs and startup businesses. They are provided by the European Innovation Council and are designed to help rapid growth, encouraging businesses to invest in game-changing innovations.
The EIC Accelerator two types of support:
grant funding of up to €2.5 million for innovation development costs,- direct equity investments of up to €15 million managed by the EIC Fund for scale up and other relevant costs.
An EIC grant can be applied for at any time and you normally receive a response within 4 weeks. If successful, you will be invited to a face-to-face interview with the EIC jury before a final decision is made.
How to apply for grants for business
To apply for any type of funding, your best port of call is their dedicated websites, GOV UK or through an expert team like the one we have. The application process for EIC grants can take some time but it is simple enough to follow once you get started. Here are some general tips:
Find out as much as you can from the grant awarding body about what they are looking for in your application- Write a comprehensive business plan
- Give specific details on how you will spend the grant
- Apply well ahead of any funding deadline as grants are usually highly competitive.
It can be tricky to put together a successful bid for grants for business, but at OnTheGo Accountants, we have experience in helping clients just like you get access to funding to allow them to grow more quickly.
Get in touch with
David Masih, our client relationship partner. David can explain how we can support you to do more with your business during a no-obligation chat today. Call
03330 067 123 or email
info@onthegoaccountants.co.uk.
