What is a grant?

A grant is a sum of money that is given to your business. Grants have often been called free money - but they are not. Although they are interest-free and you do not normally have to pay them back, providing the terms of the grants are met, you need to put considerable time and effort into applying for grants.

Who provides grants?

Grants are provided by central, regional and local government, the European Union, and a number of other national and local bodies.

Why don't I hear about them?

Grants, and information about them, are available from many different organisations. Some provide the funds, while others provide information about them. Often schemes are designed to boost the local economy and the emphasis may well change over time. The result is information chaos, which is why it can be worthwhile working with a dedicated grants consultancy to help you identify which schemes are most relevant to your business and to track any subsequent changes.

Are there any restrictions?

Which criteria must I meet in order to qualify for funding help?

Apart from the being located in a particular area and operating within a certain industry sector, additional criteria might range from having to have been trading for less than 18 months to restrictions on which suppliers may be used for a specific project. Two of the main restrictions that your business will have to satisfy before applying for most funding schemes are:

1. Matching funding
   You will normally have to put up some of your own money. It is rare for a grant to cover more than 50% of the cost of a particular venture. Grants usually cover between 15% and 50%.
2. Specific projects
   Funding is mostly related to a specific project. This could be relocation, the development of a new product or the investigation of a new export market. With major grants such as Selective Finance Investment (SFI) in the UK the project must become viable within a certain timeframe. The project plan will need to be well defined, with clear deliverables. A well-constructed business plan is usually an important part of the proposal.

Although most grants are designed to support small and medium-sized businesses (SMEs), a number of grants are available for large companies as well.

What is an SME?

Enterprises qualify as micro, small and medium-sized enterprises (SMEs) if they fulfill the criteria laid down in the Recommendation which are summarized in the table below. In addition to the staff headcount ceiling, an enterprise qualifies as an SME if it meets either the turnover ceiling or the balance sheet ceiling, but not necessarily both.

What is meant by 'special areas/regions'?

Certain regions get more funding support than others because they are considered to be more needy. These are referred to as assisted areas, priority areas or European Objective areas.

Why is the location of my business important?

The amount of funding and the number and type of grant scheme available to you will depend on the location of your business. Many grants are local, designed by the local authority to help local businesses. There are also national and European schemes, which are available to businesses throughout Europe.

What is meant by "de-minimis"?

Grants can be awarded according to the "de-minimis“ regulation. That means that the total of all “de-minimis” grants for a particular company must not exceed €100,000 within a period of three years.