Government Grants - A Brief Summary

There is a lot of government money available in the form of government grants for the creation and assistance of SMEs. These grants fall into seven main categories and range from new business start-up grants to grants for export market research. Below is some interesting grant information and a summary of the grants available and what they can fund.

Interesting Grant Facts

4500 grants and financial programs are available to UK organisations.

£50bn of grants and financial programs are available to UK organisations.

£2.7bn  remain unallocated for good causes.

Government Grants

• Capital Grants
      Selective Finance for Investment (SFI)
  • For Capital Expenditure
    – Establish a new Business
    – Expand/modernise/rationalize an existing Business
    – Set up R&D facilities
    – Set up production operation
    – Can cover one off costs e.g. IP Cost
  • Eligible Investment
    – Property/plant/machinery
    – Assets purchased outright/leased or on hire purchase
    – Property leases can be eligible
  • Must create or safeguard jobs
  • SFI Grants are usually for 15% but can be higher under certain circumstances
  • Very attractive in London at the moment and for SME’s cover all 32 London Boroughs
  • Larger companies must be in designated assisted areas
  • Available country wide for SME’s and in assisted areas for larger companies
• Technology Grants
  • These are to stimulate business growth through Technological Innovation
  • Very attractive as all project related cost are covered e.g. wages, salaries, IP protection etc
  • Emphasis on Technological innovation and Commercial Considerations

  There are mainly five types of grants supporting different types of research and development projects:

  • Micro Projects:
    – Aim to develop a simple, low-cost prototype of a new product or process which involves technological innovation or novelty (or both); and will be finished within 12 months
    – Percentage of costs covered is 50%, subject to a maximum grant of £20,000
  • Research Projects:
    – Aim to investigate the technical and commercial feasibility of a highly innovative technology; and will take between 6 and 18 months to finish
    – Normally, the percentage of costs covered is 60%, subject to a maximum grant of £75,000
    (Tier 1 Areas the rate is 70% and in Tier 2 65%)
  • Development Projects:
    – Aim to develop a pre-production prototype of a new product or process which involves a significant technological advance; and will take between 6 and 36 months to finish
    – Normally, the percentage of costs covered is 35%, subject to a maximum grant of £200,000
    (Tier 1 Areas the rate is 45% and in Tier 2 Areas 40%)
  • Development Projects:
    – Aim to develop a pre-production prototype of a new product or process which involves a significant technological advance; and will take between 6 and 36 months to finish
    – Normally, the percentage of costs covered is 35%, subject to a maximum grant of £200,000
    (Tier 1 Areas the rate is 45% and in Tier 2 Areas 40%)
  • Exceptional Development Projects:
    – Aim to develop a pre-production prototype of a new product or process which involves a significant technological advance and is strategically important for a technology or industry sector in the UK; and will take between 6 and 36 months to finish
    – Normally, the percentage of costs covered is
    35%, subject to a maximum grant of £500,000
• Marketing
  • These only support Export Market Research
    – Market Research using Research Agencies
    – Market Research purchasing Research Reports
    – Market Research supporting in-house work
    – Market Visit support
    – DTI Mission Schemes
    – Tradeshow support
  • Assistance varies from grant to grant
  • For Market Research covers 50% of costs up to a max of £20 000 per region
• Carbon Trust
  • Supporting projects for alternative or renewable energy sources
  • Very small take up
  • Are very complicated but can be very attractive
• Collaborative R&D
  • Support work with universities
  • Can be of benefit to small companies wanting to assess technology
• Farm
  • These are mainly administered via DEFRA
  • Mainly support diversification
  • The Rural Enterprise Scheme now being administered in some regions by the RDA’s
    – This scheme is open to farmers, rural businesses and rural communities
    – Can very between 15 and 100%
    – Can cover rural building renovation
• R&D Tax Credits
  • Not a grant but can be worth up to 150% of R&D expenditure

Should you want to learn more about Grants and the possibility of getting a Grant for your particular project please contact us today on 0845 838 0936 or drop us an email.