As an established home improvement business, have you ever thought about which grants are available to you? Government grants are great for small businesses, as that extra bit of cash can really help to help to grow your business.
What are business grants?
A business government grant is money that is given to a business that doesn’t need to be repaid, unless in the form of a loan grant.
Types of government grants:
- Equity finance grants
These grants offer reductions on income tax and investments to start-up and young businesses (less than 2 years old and have fewer than 25 employees).
- Soft loan grants
These grants are often government-backed and can offer repayment terms and conditions that are softer than those you would receive through banks and building societies. Your business could receive longer repayment terms or lower interest rates.
- Direct grants
These grants are typically for start-ups as they cover start-up essentials such as equipment and staff training.
Which business grants are available to small businesses?
There are many business grants available to small installation businesses. If you are interested in applying for any of the grants, we advise you to do further research before beginning the application process to be sure that your business is eligible. Here are just 4 examples of grants available and where else you can look for relevant grants.
- Government grants
As of 12th February 2020, the UK government have 75 grants that are available to small businesses. To view all of these grants, please go over to the Gov.Uk website. These grants range from offering free business development support to equipment to cash.
- Apprenticeship grants
Apprenticeship grants are designed to support companies employing those aged 16-24 who are on an apprenticeship programme. If you don’t pay the apprenticeship levy, then funding could cover 95% of the cost of training and assessing apprentices.
- Energy entrepreneurs fund
The energy entrepreneurs fund is a grant funding scheme to support the advancement and development of technologies, products and processes in energy efficiency, power generation and storage. Phase 6 has recently been launched and is over £10,000,000.
- New Anglia small grants scheme
Applicable to specific parts of Norfolk and Suffolk, this grant is set up and ran by the New Anglia Local Enterprise Partnership in order to support businesses wanting to grow, build services or gain greater efficiencies.
Are small business grants taxable?
In general, yes. Grants are typically taxable income. However, schemes that help with no cash reward aren’t usually liable to tax. We would always advise you to check with your accountant or the grant provider themselves.
Final thoughts - What to keep in mind?
Applying for business grants can be a long, and sometimes stressful, process. Before beginning the process ask yourself:
- Do I have enough time and resource to dedicate to the application and process of applying for a grant?
- Is this the right grant for me?
- Do I meet the eligibility criteria?
- Do I know what I want this grant for and is it suitable for my business objectives?
- Can I cover the rest of the financials that the grant won’t cover?