Frequently Asked Questions by small business owners regarding government funding

Money from the government can be a mysterious thing. Although many UK small business owners could benefit from this type of funding, they often steer clear of it due to widespread misinformation about where to look for it and how to apply for it.

Below, we’ve provided answers to some of the most frequently asked questions we get at UKStartups from business owners and startups just like you.

Is government funding really for me?

Numerous national grants are available. The vast majority of people living in Britain can make use of these services. It’s possible to apply for funding through the UK government if you’re a business owner who is just getting started or expanding their operations and has a variety of business expenses they’d like to cover. Having a British citizen or permanent resident as a business partner is not enough, however.

How much money can I actually get from a government program?

Given the variety of options, the exact sum you receive as funding will depend on the specifics of your company and its requirements. There are business owners who would be happy with just a few thousand pounds, and there are others who would need upwards of a million. Each programme has a maximum and an average amount they give out to small business applicants, so the amount you can actually get will vary. Consider the past awards made by the programme to business owners and applicants to get a sense of what you might be eligible for.

What is the maximum that I can get?

For the most part, the amount of money an individual can receive from a government programme is capped. This does not guarantee that you will receive the maximum; rather, it indicates that this is the most that anyone in the programme can receive at any given time. Asking for the absolute most is never a good idea; instead, you should apply to as many different programmes as possible in order to receive the sum that best meets your needs.

What do I have to do to be eligible for funding?

If a business owner wants to receive government funding, they must first meet the requirements set forth by each individual programme. There are specific criteria for each of these grant programmes. You need a business plan, you need to be ready to show your three-year financials or financial forecasts, and you need to be applying to the correct programme within your location, covering your industry, and specific to your funding needs.

Do I have to be in business to get government funding?

You must be either launching a brand new venture or significantly growing an existing one to qualify for most forms of public financing. No matter where you are in the process of launching your business, there is a programme that can help. You need a business licence or proof of registration as a business before submitting an application for any programme.

Can I get funding for any of my expenses?

Different government funding programmes can help with a wide range of costs that a small business may incur. Depending on the type of business you run, these costs may be different. Initial operating and start-up costs, renovation costs, marketing costs, wage support and hiring, equipment purchase, supplies and inventory, and the like are among the most common. There is a good chance that the government will foot the bill for most of your small business’s costs, but there is always a chance that they won’t. Contacting the relevant government funding agency and asking what they specifically fund is always a good idea.

I already got funny once. Can I get more funding?

There is no reason you can’t apply to the same or another funding programme again if you’ve previously been approved for funding through that programme. If you’ve already applied to multiple programmes and been rejected, you should wait at least three months before applying again, unless the programme specifically requests a reapplication.

How long does it take to get accepted for a funding program?

It usually takes between two and six weeks to hear back from a government funding agency after you’ve submitted your application. Time of year, the type of programme you’ve applied to, the amount of money you’ve requested, and the deadline for that programme are all variables.

How long does it take to see the money?

Once you have been approved for the funds and have received your confirmation letter or call from a government funding agency, it can take anywhere from 24 hours to a few weeks for the funds to show up in your bank account. How long it takes to receive your money after applying for a grant is entirely dependent on the specific grant and the funding program’s internal accounting policies. Those who have applied for and been granted a larger sum of money may find that there is a delay in receiving the funds.

What if I can’t pay back the money?

As with any loan or other form of borrowed funding, the government agency from which you borrowed money for your business may work with you to devise a repayment plan if you find yourself in a position where you cannot repay the money you were given. You can rest assured that a repayment plan will be established to help you make the required repayments to the funding agency, as it is extremely unlikely that they will reject the money borrowed.

What are the interest rates of government funding?

There is a plethora of government loan options available. Loans from the government can range from being interest-free to having a very low interest rate to having strings attached. The interest rates, if any, will be based on the nature of your business and the amount of money you require. Even though there is no fixed interest rate for government loans, they typically have much lower rates than those offered by commercial lenders.

I only want to Grant, is that possible?

When requesting financial assistance from the government, a small business must be specific about the resources it needs. That means applying only to government grants and avoiding any government loans or tax breaks or credits that is completely fine enough to you. Bear in mind that getting a grant is a lot harder than getting a loan. Applying for and receiving a grant is more cumbersome than receiving a government loan, so the latter is preferable if you need cash quickly.

I got the denied funding now what?

Don’t give up hope if you’ve already applied to and been rejected by a government job-finding programme. Government assistance programmes have rigorous application processes. It’s not always over when you deny it. Instead, analyse the application to find out where you went wrong and how you can make it better before applying again. Application errors account for the vast majority of government funding denials. If you want to apply for something through the government, you should probably hire a professional.

Do I need to have a business plan?

The majority of UK government funding options require a business plan as part of the application process. Having a well-thought-out business plan will help you get the funding you need from the government by providing details about your business model, its potential, and its finances. You should not submit an application without a thorough business plan.

Can I apply to all government funding programs at once?

Even though you are free to submit applications to as many government funding programmes as you like, you should prioritise those for which you are a good fit. As each government funding programme has its own application requirements, it can be challenging to apply to multiple programmes at once. Note that your credit score could be affected by the multiple loan applications you submit. You should only submit applications to programmes where you have some hope of being accepted.

Can somebody else apply for me?

In order to increase your chances of being accepted into a funding programme, it is wise to seek professional assistance. If you’re applying for a loan, you want to do everything in your power to increase your chances of approval. So, if you aren’t confident in your application skills, you can hire a professional to assist you. Remember that it is acceptable to pay for expert assistance, but it is not acceptable if the expert is willing to assist you in exchange for a cut of the funds you hope to obtain. If this is done by a third party, your application will likely be denied, and even if it is approved, you may be required to repay the funds.

When it comes to government grants, these are some of the most frequently asked questions by business owners. Feel free to consult with our experts if you still have concerns or questions after reading this.