What has happened to all the grants available for small businesses?
I am trying to raise enough money to buy a small chiller van for my catering business. The banks won't lend, and I don't have any rich relatives! Business Link have said there may be a possibility of a loan though the Chamber of Commerce. I am not making enough profit yet to lease a van, and do not want to buy one on finance. The only way my business can grow is to expand the services I provide, and I can't do that without a van. Where have all the grants gone that used to be available to small businesses? Any ideas very gratefully received!
Asked by Lynne Tanner,
May 2008 - Contact this person
7 Answers
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Hi Lynne,
There are still grants out there, but it's a postcode lottery. Certainly in my area there are start up grants and expansion grants (linked to job creation). It may be worth contacting your local enterprise agency and the economic development department at your local council, though they may just refer you back to Business Link!
Lee -
The local Business Link service should be your first point of contact re any available grants (depending upon your location) and general business advice. They may have been aware of an initiative with the local Chamber of Commerce, which is why they suggested that route, but if nothing came of it I would suggest your returning to Business Link with this feedback and also to see what else they can suggest. It may be different in my area, but their Advisers are professional and helpful.
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As per the answer from Lee, grants are available and it is a postcode lottery. BUT...Business Link are hard work to deal with (certainly in the West Midlands) and the time taken to secure any grant funding, and then all the work needed for follow, up often negates any monetary value you get.
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Thanks for all your replies. The grant situation is a postcode lottery - in a lot of cases you have to be in an Objective 2 area and I'm not. I have a Business Link Advisor, but things are so slow with them. I have discovered an organisation called Moneyline (based in Leicester). As they are a .org, they may be elsewhere, too. They seem helpful (Business Link didn't know about them, don't they keep up to date, I found them on Google!) and can offer small business loans to people who otherwise can't get one through the usual channels. I'm wading through that at the moment, knocking up a basic business plan, so something may come of it.
Lynne. -
I don't know Moneyline, so I'm not writing in the particular, just generally - any offer of money to someone not normally creditworthy can have all sorts of risks attached to it, the most obvious being the interest rate and the penalties attached for a]default, b]early settlement. Not saying don't - just be very, very careful and take someone with you whom you trust.
[Just noticed the date of your posting, so this probably is too late and so falls on stony ground! Hope things are well with your venture.] -
Hi Lynne,
I know this might be a bit late, but have you checked out the Small Firms Loan Guarantee Scheme, supported by Business Link - see the link (no pun) below:
http://www.businesslink.gov.uk/bdotg/action/detail?r.s=sl&type=RESOURCES&itemId=1074447105
The BERR website has aditional information and a list of participating lenders.
http://www.berr.gov.uk/bbf/enterprise-smes/info-business-owners/access-to-finance/sflg/page37617.html
The BERR underwrites 75% of the loan so can be good option for those with limited security or poor credit ratings, as long as the business plan is strong.
All the best going forward,
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Check out the startup.co.uk website for funding, sometimes the local council also might have grants. Also check out which business advice or support organisations work in your region, who often can help out. You could also try local micro credit organisations.
However, must funding is really aimed at very specific economic or social development goals set by central, regional or local government, and there are very few grants available for things like vans or transport as they would expect you to be able to pay that from your own income or a bank loan.
Good luck!
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