Small Business Grant

A small business grant is a form of assistance, usually financial in nature, the benefit of which is non-repayable. It is given by one organization to another to encourage it to undertake or continue activities that it would not (or could not) otherwise do without that support. Alternatively, a small business grant may be used to persuade the organization to refrain from certain activities.

Small business grants can be distinguished from other forms of finance available to individuals or organizations by the fact that the grantor's decision to support an organization is made without the need for direct commercial gain.

Over recent years there has also been a trend to see small business grants being offered to encourage public – private sector co-operation rather than offering public support to encourage companies to undertake projects they might not otherwise do. Increasingly, central government support is provided to encourage local authorities to work with the private sector to release properties that would otherwise remain derelict, empty or under-utilized. In so doing regeneration in areas of social, economic and other need will be accomplished.

The not for profit sector in particular has had to consider funding how to obtain funding, requiring it to be more businesslike in its approach. Charity funders are unlikely to support any scheme that has not been thought through or could not be continued once their initial support ceases.

Increasingly, the lines of division between the profit and the not for profit sectors are becoming blurred - sports, arts, medical care, education are but four examples where requests for help could be directed to government, charitable trusts or commercial sponsors.

One often reads about hundreds of millions of small business grant money being available - all but for the asking. Whilst large sums of money may be available the notion that it is available to you, your business or your charity by simply asking for some help is wildly inaccurate. Small business grants, where available, are available for a reason. At the outset, it should be remembered that small business grants are designed to help specific people / organizations, with defined projects in specific circumstances for specific purposes. They are rarely going to meet even fifty per cent of project costs, meaning you have to find other funds, usually from your own savings or your company reserves. To win at obtaining small business grants you must be eligible to do so.