Starting a business doesn’t only require a proposition, team, and plan. It also consists of financial backup. Entrepreneurs that have savings can easily engage in building up an empire.
Moreover, many of them are rising due to unsecure job security and unemployment, especially during the ongoing pandemic. Additionally, many banks would disapprove startup loan applications to borrowers with no credit history or bad ratings.
Therefore, business grants become a viable option for those who cannot apply for loans for unemployed or other borrowings.
Business Grants for the Unemployed UK Citizens
● New Enterprise Allowance or NEA
The NEA scheme provides a chance to aspiring to build their business from scratch by become self-employed. Post eligibility and application approval, the borrower would receive financial and business plan guidance from a mentor.
The mentor would also approve of the business plan. The applicant would receive a weekly payment of £1,274 for more than twenty-six weeks. Additionally, the NEA participant can apply for a £1,000 loan as part of startup costs.
The mentor would keep assisting until the launch of a startup and the beginning of trading. The eligibility criteria of NEA requires UK citizenship and eighteen years of age. Additionally, it needs Jobseeker’s Allowance, Universal Credit, Employment and Support Allowance, etc., for you or your partners.
However, the second option can get substituted with a disability, single parent, illness, or income support. To avail NEA, an applicant must reach out to a work coach at Jobcentre Plus or connect with Universal Credit.
● The Prince’s Trust
People in the age group of eighteen to thirty can apply for The Prince’s Trust Scheme. It offers £4,000 to £5,000 in loans. The former is reserved for sole traders, whereas, the latter is for partnerships.
Moreover, it comes with a six per cent APR. Additionally, the duration of the grant scheme ranges from one to three years. However, it can provide grants for startup businesses under certain circumstances.
According to a source, The Prince’s Trust has provided support to more than 80,000 businesses. It has been available since 1976 and helped entrepreneurs develop successful organizations.
The Prince’s Trust scheme is available for unemployment UK citizens and people with less than sixteen weekly working hours.
● Be The Boss Scheme
Be The Boss is a Royal British Legions scheme funded by the UK government. It helps in the planning, funding, and growth of small business enterprises. Additionally, former armed force members can apply for the scheme, irrespective of their discharge dates.
The scheme mainly accepts applicants with a disability, long-term health condition, or injury. Moreover, through the scheme, an applicant can receive £7,500 for business initiation and £30,000 for growth.
However, the maximum growth amount remains applicable for businesses with at least twelve to twenty-four months of trading. The eligible applicants receive £500 increments in the form of loans and grants.
Besides this, an applicant can apply for a £250 grant for market testing of an idea. Additionally, Be The Boss scheme also comes with mentorship, advice, and guidance. Therefore, it cannot get initiated by testing means only.
● Startup Grant
The Startup Grant scheme is a Broadland District Council’s initiation. It provides funding to unemployed citizens trying to become entrepreneurs in Broadland District of Norfolk. However, it only provides a minimum amount of £750.
However, applicants that want to apply for this grant scheme should not begin trading before receiving the approval. Additionally, the applicants require to submit a business plan and forecasts.
Furthermore, applicants must connect with Broadland District Council’s and showcase their business plans. They would receive the application post business plan and forecast approval. After that, the organization would go through them and provide the most suitable loan amount.
● Enterprise Grant
The Enterprise Grant is not available to unemployed people in particular, but also everyone else. It is also a Broadland District Council’s grant that provides a maximum £750 to growing startups in the Broadland District.
However, its primary requirement consists of less than ten staff members and contact details. Second, the organization would need business accounts, work quotes, business expansion equipment, etc., for grant approval.
The Enterprise Grant and Startup Grant remain subject to the Broadland District Council funding. The available primary grants with this government organization include Local Restrictions Support Grant or LRSG and Additional Restriction Grant or ARG.
LSRG can provide businesses with funding of £3,000. It supports companies that can’t reopen by law due to the ongoing restrictions initiated since 5th November 2020.
Other Financial Options
Besides the grant options available for unemployed and startup enthusiasts in the UK, there is an option to take an unemployed loan from RecentFinance. Additionally, other money borrowing options like zero APR credit cards, payday, unsecured, bad credit loans, etc.
Moreover, people that have become recently unemployed can even avail no guarantor or guarantor loans. A few other choices include invoice financing, bankruptcy loans, startup loans, peer-to-peer lending, etc.
Furthermore, before opting any of the grant options evaluate by comparison and seeking advice from the companies. They would even provide other viable options to suit repayment and existing debt needs.
Therefore, the companies would help to overcome unemployment and become an aspiring entrepreneur.