Grants for Small / Medium Enterprises - Page 1
It can be very difficult even for the most seasoned grant consultant, let alone the owner of a growing SME, to keep up with the large number of different grant schemes available. Despite the apparent complexities however, most grant schemes, can, with the right professional advice, yield positive results in a simpler fashion than you may have first thought.
This article is designed to present a brief outline of the major forms of grant aid currently available, and to provide some thoughts on what to consider when making a grant application.
When you think of grant aid, the first thing that comes to mind is direct grant support in the form of a cash contribution towards capital expenditure, employment, training or research and development.
Most local authorities offer some form of grant funding towards capital expenditure within SMEs. These tend to be set at a maximum level of grant of £5,000 and can contribute a varying percentage of the total capital spend depending upon where your business is located.
For grants over £5,000, the Welsh Assembly Government offers two grant schemes, the Assembly Investment Grant (“AIG”) and Regional Selective Assistance (“RSA”). AIG is aimed specifically at SMEs and provides grants of up to £50,000. RSA is open to all sizes of business for grants exceeding £50,000. Both grants are designed to encourage investment and the creation or safeguarding of jobs in the assisted areas of Wales.
Grant ceilings are set using a percentage of either capital expenditure or salary costs for the project. The percentage used varies according to both the location of your project and overall size of your business. In practice however the amount of grant available depends upon your individual circumstances, and is the 'minimum amount necessary' to make sure the investment goes ahead.
A New Deal Plus Premium of up to £6,000 per person is now available from The Welsh Assembly Government as a supplement to the project grant, for each person employed in a post created as part of an RSA project, that is on a New Deal or another Job centre Plus programme or benefit.
For businesses undertaking research and development the Welsh Development Agency (“WDA”) offer the SMARTCymru grant scheme. Support is available for all phases of the development life-cycle, from feasibility to exploitation. It is open to all innovators who aim to create and exploit technologically innovative products and processes, based in Wales. The level of support available can be as much as £200,000 depending upon where you are in the development life-cycle.