Grants are not
available for use as working capital or generally for uses that the
business chooses afterwards. Grants cannot be obtained for work
or purchases that have already been made, only for future projects.
Grants
are not given for an entire project amount. Grants are mostly
given using the term “Match funding”, meaning that the potential grant
will be up to half of the project cost (normally between 15% and 50%).
Your business will have to match the grant by providing the other half
of the project costs. This helps to ensure grants are not given to
risky projects that businesses are unwilling to invest in with their
own money.
The grant
process can take several months, so you should always add extra
time to your planning to ensure that a decision is made before you
start on the project.
Small Business
Government Grants Explained
A grant is the
process of the Government giving another organization a form of
non-repayable assistance, generally financial.
Government grants are given to encourage an organization to
undertake or continue with a specific activity which otherwise they
would or could not do. Government grants are also used to
persuade an organization to refrain from specific actions (i.e., to
remain in a certain location).
Government grants are awarded to organizations on merit, to be
eligible even to apply of for a grant an organization must satisfy
specific criteria.
