Business Financial Aid is a particular sum of money that is given to a business enterprise to fulfill their financial needs of a particular project or for a specific purpose. The business financial aid only finances a fraction of the total cost involved.
There are two kinds of business financial aid available:
• Tied business financial aid : Along with the grants when certain conditions are imposed on the functionalities of the business or there is the norm of repayment of the grant, it is known as the tied grant.
• Untied business financial aid : In such type of Business Financial Aid there is no obligation of repayment or giving up shares in the business.
Some business financial aids are purpose specific while others are area specific.
Government business financial aid:
The government financial aids require that the while the government finance a fraction of money, the other part is paid by the business itself.
Types of grants available
There are a variety of business financial aids available that cater to a number of purposes. The main groups who supply such Business Financial Aid are:
-The government
-The European union
-Regional Development Agencies in England
-Local authorities, local councils and local development agencies
-Business links
-Chambers of commerce
-County enterprise boards
The business financial aid is available for the following purposes
Innovation, Research and Development:
Business financial aids are given to the business enterprises aiming to enthuse innovation, research and development.
Training
Business Financial Aid is given to help in the formation of human capital.
New Deal
Subsidies or business financial aid is provided to the new deal candidates and also used for training the new people.
Young Entrepreneurs
Young entrepreneurs who have a lucrative business idea and are aged from 18 to 30 are given business financial aids.
Economic Regeneration
Businesses that are located in the assisted areas receive such business financial aids if they enthuse regional development or employment prospects.
There are other types of business financial aids. There are private sector agencies that inform about the business financial aids t hat are available. These agencies also help in the provision of such financial aids. These private sector agencies charge fees for the service that they provide but none of them can give any assurance that the financial aid would be obtained. So there are certain aspects that should be taken under consideration before applying for business financial aid from the private agencies and they are:
- The services rendered by them
- The amount of fee charged
- The amount of funding required
- The type of project that needs funding
For details on Business Financial Aid sites like businesslink.gov, sba.gov, mygovernmentgrants.com can be viewed.