Funding Strategy
Grants are a partnership, not a blank cheque.
A common misconception is that a grant covers 100% of project costs. In reality, most UK government and regional grants operate on an "Intervention Rate." This is the percentage of the total project cost the grant will cover. If a grant has a 70% intervention rate, you are responsible for providing the remaining 30% from your own private funds. This ensures you have "skin in the game" and are committed to the project's success.
Intervention rates are tiered based on company size. Generally, the smaller the company, the higher the percentage the government will cover.
Micro/Small (<50 employees): Often eligible for up to 70% coverage.
Medium (<250 employees): Typically capped at 60% coverage.
Large (>250 employees): Usually limited to 50% or less.
Always check the specific 'Scope' document of a grant, as these rates can fluctuate based on the specific "Research & Development" category of your work.
Enter your total project cost and company size to see your estimated grant award and required match contribution.
Enter a project cost above to see your estimate.
Estimates based on standard Innovate UK intervention rates. Actual rates vary by grant programme and project category.
Match funding must come from "private" sources. You cannot use money from another government grant to fund your share of a project. Acceptable sources include company revenue/cash reserves, director loans, private equity investment, or traditional bank loans. You must demonstrate that these funds are "liquid" and available before the Grant Offer Letter is finalized.
Crucially, most grants are paid in arrears. This means you must pay your staff and suppliers first, and then claim the money back from the grant provider every three months. You need enough working capital to cover at least one full quarter of project costs entirely on your own while waiting for the first reimbursement.
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