Grants for Start-Up Businesses in Ireland
A key component of any successful business is of course funding. Quite often companies will need funding to support expanding and grow the business. Due to the Covid-19 pandemic, this funding may even be necessary for the business to stay afloat. This is more relevant when it comes to start-up companies. Start-up grants are a fantastic way for a start-up company to fund itself in the short term. We’ll take a look now at the available grants for start-up businesses and the process involved with regards to claiming them.
There a range of start-up grants available for businesses and these vary according to the business need.
Local Enterprise Office
Your first port of call and often most logical when seeking funding support for a business is the Local Enterprise Office. The Local Enterprise Office (LEO) can assist you and your business be its funding support in regards to pressures caused by Covid-19, Brexit issues or simply provide guidance on how your business can raise funds for a specific project.
The LEO is a valuable resource for people interested in starting a new business or people already trading. These include entrepreneurs, early-stage promoters, start-ups and small businesses looking to expand. LEO’s offer a wide range of experience, services and skills are there are 31 dedicated teams across the local authority network in Ireland. So there is sure to be one close in your area.
SURE – Start-up Refunds for Entrepreneurs
SURE is a tax relief that provides a refund of income tax that has already been paid in previous years. This relief can be claimed should you be starting your own business and you’re an employee, been made redundant recently or unemployed. The conditions stipulated by Revenue is that you must establish a new company or a new qualifying trading activity, mainly PAYE income in the last 4 years, take up full-time employment in the new company as a director/employee, invest cash in the new company by purchasing shares and keep the purchased shares for a minimum of four years.
STEA – Short Term Enterprise Allowance
The STEA or Short Term Enterprise Allowance provides support to people who have lost their job and wish to start their own business. It is paid in lieu of the Jobseekers’ Benefit for a maximum period of nine months and ends when the entitlement to Jobseekers’ benefit ends. Qualifying for the STEA is simple; you must be in receipt of/or entitled to receive Jobseeker’s benefit.
Alternative Funding Sources
In recent years, alternative funding sources have become more popular. One of the best ways for a start-up to raise funds without the need for a financial institution is through equity crowdfunding.
Equity crowding funding allows accredited investors who are interested in investing in high-potential businesses to raise new funds for your company. In return for their financial investment, the investor would receive shares in the company.
The advantages of this process are that it is a relatively low cost, fast and straightforward fundraising process. Furthermore, the very act alone of a successful equity crowdfunding campaign may validate your company for other investors in the future.
There are a variety of ways to raise funds for your company. So, no matter what stage of development your company finds itself in, there is support, advice, guidance and the ability to raise new funds.