Obtaining grants and funding for capex projects

With many businesses looking to postpone or rethink capex investment in the current challenging economic climate, the time is right for some strategic introspection. Taking a step back to look at the business holistically, identifying strengths and opportunities and taking advantage of funding grants to do so.

Business Grants

Business grants can only be used to fund specific projects, not business as usual costs. Grant funds vary from £1000 to millions, however larger grants tend to be related to innovations that will have a significant impact. Business grants typically fund between 30 to 50% of the total project cost so there is still a capital outlay to consider.

Here are a few points that are common to most business grants for manufacturers:

• You cannot claim for retrospective expenditure. If you’re looking to buy new machinery, office equipment or services, or you’re about to move and have building project costs – enquire about manufacturing grants FIRST.
• Be prepared to provide a robust business case for requesting the grant. Grant funding is dynamic and changes fast, it can get especially competitive if funds are running low.

Below are some links to a few grant schemes to investigate:

Schemes to help your business innovate and grow – GOV.UK (www.gov.uk)

150 UK small business grants to apply for right now

Research and Development

Up to a third of investment in R&D can be claimed back through tax credits, whether for new product development or existing product modification, or for process changes. More information and guidance can be found here:

https://forrestbrown.co.uk/news/innovation-in-the-food-and-beverage-industry/

DDK can offer support and advice on what schemes may be suitable for grant funding as part of our feasibility study offer. Contact us through our website form if you would like an informal chat about your project plans.