What grants and loans are available to start my new business?
The high street banks are the largest providers of start-up funding, up to 75% of new businesses use bank loans to raise funds. There are however other sources of grants and loans and your local Enterprise Agency or Business Link advisers are the best people to talk to. They will be able to help you through the maze and advise you on whether, or how, your business might qualify for them.
If you are between 18-30, unemployed and don't have the means to start your business then it would be worth contacting your local branch of the Princes Trust at Eastleigh Community Enterprise Centre, Unit 3 Barton Park, Eastleigh, SO50 6RZ. Tel: 023 8065 3637.
(Further information available under Specialist Topics - Young Entrepreneurs)
If you have been unemployed for more than six months, check with your local Job Centre about the New Deal 'Assisted Training' schemes. This allows you to still claim benefit for set periods whilst getting practical support and help to set up your business.
The Small Firms Loan Guarantee scheme is run by the Department of Trade and Industry. Bank loans usually require some security for repayment, which not all small businesses can provide. With this scheme the government acts as a guarantor for a certain percentage of loans made by banks. Currently, guarantees cover 75% of loans between �5,000 and �100,000 for new business. Capital repayment can be delayed for up to two years but the term of the loan cannot be more than 10 years.
A good business plan is vital when seeking any financial help and your local business support agencies will be invaluable in helping you with this.
Does the City Council have grants available for business start-ups?
Generally no, the City Council does not have start-up grants or loans for new businesses. Southampton is not part of any government assisted area and therefore does not receive government funding to be able to offer incentives to businesses.
The City Council does however encourage new business start-ups by providing relevant business services and supporting the local Enterprise Agency and Princes Trust.
The Council is sometimes able to offer some assistance when funding becomes available, for example from the European Social Fund or from the Single Regeneration budget which is government funded. However, it is unusual for funding to be available from these sources. The emphasis is usually on funding for very specific purposes and not just for meeting general business costs. State aid rules are likely to apply to the amount of money you can receive.
To find out if anything is currently available go to the City Council Support for Business section.