In recent months, a wealth of government supported schemes have been launched to aid UK companies to stay in business, despite the negative impacts of COVID-19 and the operating limitations caused by lockdown measures. Help has been provided to sole traders and enterprises of all sizes. For small businesses in the UK, along with dedicated loans provided through specific schemes, there are also grants available to help new firms get started.
In the following sections, we’ll look at how small business grants differ from small business loans, along with how they are accessible, and we’ll explore some of the institutions and organisations providing them.
Is there a difference between a small business loan and a small business grant?
A small business loan is a set sum of money for use by your business that you will need to repay to a lender within an established time period. If your firm is approved to receive one, a small business grant is different, as you will not be expected to pay any funds back that you are awarded.
However, some small business grants may be provided with the proviso that as its owner, you invest the same amount in your company. For example, to receive a grant of £12,000, you may be required to invest £12,000 as well.
What kind of grants are available for small business start-ups?
Different grants are available for newly formed small businesses operating in specific sectors. For example, for the 2021-22 National Lottery Grants for Heritage, firms engaged in boosting local economies, creating jobs and promoting skills development are being prioritised, while Innovate UK offers government grants to firms developing and realising new ideas.
Where can you find further information on small business grants?
During the pandemic, government-backed small business grants have been administered by local authorities. Your council can provide details of any grants available in your area and funding offered for the industry your business is focused on. Additionally, the government’s regional funding portals and business finance finder may be useful in searching for appropriate grants for your firm.
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