Different Types of Business Grants

Business grants are available from a variety of sources and vary on the type and location of the business. They also come with a set of terms and conditions attached which must be adhered to if the grant is going to remain in place. There are a few different grant types which set certain fundamentals to how the grant works;

If you are conducting a research program, it's possible to obtain grants from organisations who have a similar interests.

Direct Grant:

A grant is issued to the successful applicant and is usually a percentage of the total project cost. If the project is unsuccessful the grant is not required to be repaid.

Repayable Grant:

A grant is issued to the successful applicant and once the project achieves its goals or aims the grant is repaid from the business revenue. If the project is unsuccessful the grant is not required to be repaid.

Soft Loan:

Is exactly as it sounds - it is a loan more than a grant, although, it is provided with more relaxed conditions than that of a commercial business loan. Often it comes with lower rates of interest on the repayment and maybe even over a longer repayment period.

The below table outlines just some of the larger and more common grants available by government bodies and what they can be used for;

Grant	Issuer	Purpose	Eligibility
Innovation, Research and Development	Government European Union	Grants are provided to encourage research which aids progression. For a qualifying project there is up to £500,000 available. Own financial input is a requirement.	Small to medium sized businesses
Grant for Business Investment (G.B.I)*	Regional Development Agencies	Qualifying applicants usually receive funds for approx 15% of the project costs. The aim is to provide funds to help businesses expand, update or advance machinery, buildings or equipment.	Any business size
Skills and Training	Train to Gain Organisation Supported by European Union and the Government. **	Advisers are made available to assist with specialist training needs and requirements of businesses. Also provided is support to business owners with understanding financial issues within a business.	Different levels of support are available depending on the size of your business.

*Within Scotland this grant is known as Regional Selective Assistance.
*Within Northern Ireland this grant is known as Enterprise Northern Ireland Loan Fund.

**In Scotland the organisation who fund this grant are known as Skills Development Scotland.
**In Northern Ireland the organisation who fund this grant are known as Department for Employment and Learning with its Success Through Skills Program.

It is common for the organisation who is offering the grant to stipulate exactly what the money is to be used for within the business. For example they may offer 50% of the cost to provide ongoing training to help secure long term jobs or they may want the money to be spent on environmental concerns etc.

Guide Contents

Business Grants
Different types of Business Grants
Applying for a Business Grant
Frequently asked questions about Business Grants
Where to get more help and advice about Business Grants

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