Applying for Small Business Grants or Loans

If you own or are starting-up a small business and are struggling to raise the funds you need, you could consider applying for one of the small business grants on offer. Grants are available from various sources, depending on how much money you need and what it is for.

One option is to apply for a government grant. Your local council should be able to help with information about the types of grant available and how to apply. You might be able to secure a grant of between £500 and £1,000, or more if you are in a regeneration area which has more money available for grants.

Another option is a research and development grant. These are grants for businesses introducing some form of technical innovation into their business that is expected to produce significant returns. Research and development grants will cover around 35% to 65% of the cost of a project and are available between £5,000 and £500,000.

The Prince's Trust offers loans to young entrepreneurs aged between 18 and 30 who work less than 16 hours a week or who are unemployed. Funding of up to £4,000 can be granted, as well as support, but typically loans are around £2,500. The organisation also offers business training schemes. Under the loan repayment scheme, you will only have to pay £20 for the first six months and then the remainder over two to five years. The interest rate is 3%.

Another type of loan is available from the Carbon Trust if you are planning on investing in energy-efficient equipment. These loans are interest-free between £3,000 and £400,000.

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