There are many business startup grants for unemployed people in the UK for setting up a small business. When you plan to start a business, your biggest concern is finance. There are various schemes out there, each has its bars to apply. Small business grants are one of the most preferable sources to finance the business, but getting one can be tricky.
So, here are some of the funding options available to start a business. If you’re looking for a source that can support and finance your business, you’re in the right place.
Read the article till the end to learn about business start-up grants for the unemployed, how you can get these and which one is right for you.
In this article, you will learn about
- What is a business start-up grant
- Points to consider while writing a grant proposal
- Innovation and Resilience fund (IRF)
- The Prince’s Trust scheme
- Omicron Hospitality and Leisure Grant (OHLG)
- The Royal British Legion’s Be The Boss Scheme
- Start-up Grants
- Broadland Enterprise Grant
- Local Discretionary Hospitality Grant
What is a Grant?
Grants are a sum of money provided by the government or a private organisation to invest in a particular aim which helps the business to grow and develop. They can invest the money in training, equipment or to reach a new market. The difference between other business loans and grants is that you don’t need to pay it back and, in exchange, you don’t have to give a share of your business.
Points to Consider While Writing a Grant Proposal
You must keep following points in mind while you are writing a business grant proposal:
- Aims should be specific
- Well explained criteria
- A budget should be specific
- Your team must be capable of delivering work, and you must prove it with evidence
- You must define and show that your business meets the qualifying area for grant
- You must be clear about the success of your plan
- You must apply early, so you might have a chance of receiving a loan when the scheme launches.
Business Startup Grants for Unemployed
Here are some of the most recent and popular startup grants:
Innovation and Resilience fund (IRF)
If a business or organisation wants to deliver a project, it can apply for (IRF) scheme to get the funding. The amount of funding will be considered if the applicant would exemplify that their project will have positive benefits for the local economy.
The applicants can apply for:
- Up to £50,000 per individual (business or organisation)
- Up to £150,000 per collaborative bid (multiple businesses and organisations)
The funding request is a minimum £2,500.
- The applicant must have been trading before 1 April 2021
- Operate and trade in East Devon
- Not be insolvent
- Not strike off from the Companies House
- Be not over the permitted subsidy control threshold
The deadline of this scheme is on 18 February 2022 or when the total amount consumed that is £2,044,070
The Prince’s Trust Scheme:
It is a charity organisation which provides funds for unemployed young people. This supports people who live in England, Northern Ireland, Scotland and Wales. This scheme provides start-up loans up to £5,000 and loans for sole traders with low interest are up to £500 to £25,000.
- You are an unemployed person
- You work for less than 16 hours per week
- You are not a postgraduate
- You are not a gap year student
- You have a sound business idea
- You are not a recent graduate (less than 6 months)
Omicron Hospitality and Leisure Grant (OHLG)
This grant is a one-off payment. Because of the effects of Omicron, the government announced a further grant of up to £6,000 on 21 December 2021 for the hospitality, accommodation, and leisure sectors.
Businesses that are on the premises of a local list with a rateable value of exactly £15,000 or under on 30 December 2021 will receive a payment of £2,667.
Businesses with a rateable value of over £15,000 and less than £15,000 on 30 December will receive a payment of £4,000.
Businesses with a rateable value of exactly £51,000 or over on 30 December 2021 will receive a payment of £6,000.
The Royal British Legion’s Be The Boss Scheme:
If you are unemployed and have provided services in the armed forces, this can provide you with financial support with a business grant of up to 7,500.
This supports new business start-ups and provides funds of £1,000. It is available to the new start-up businesses that are trading for a minimum of 16 hours a week and less than six months.
Broadland Enterprise Grant:
This scheme is available for the small businesses for the growth and development of micro-businesses within the district that trade for a minimum of 16 hours a week and has been trading for at least 6 months. This helps the local businesses to expand, and it provides a maximum grant payment of £750.
Local Discretionary Hospitality Grant:
This scheme helps the hospitality business. The focus of this grant is mainly to provide support to restaurants, hotels, public houses, etc.
Quick Sum Up:
To conclude, we have discussed business startup grants for the unemployed in the UK. You should apply for a grant which is suitable for your business plan and is up to your requirements. Achieving a business grant can be a complex task, but you must follow the rules for the scheme and apply accordingly. Hope you have better learning of grants through this article.
Disclaimer: This blog is for general information purpose.