9.11 Government grants and assistance

Question 1

What are government grants?

Answer 1

Financial grants provided by government bodies and trusts to support projects that are beneficial to society and the public

Question 2

What is the Enterprise Finance Guarantee (EFS) scheme?

Answer 2

Incentive scheme for investors to invest in small to medium sized companies, bu providing tax relief.

Question 3

What are the advantages of government grants?

Answer 3

• cheap form of financial assistance
• low interest rates
• usually don’t have to be repaid
• projects are usually beneficial to society at large

Question 4

What are the disadvantages of government grants?

Answer 4

• applications are time consuming (paperwork)
• require outcomes beneficial to society, often to the detriment of profit
• long waiting periods
• lots of competition for the same grant
• detailed eligibility requirements