Help required

arrowarra

Hi, I aquired a business start up grant in 2011 from the consortium of enterprise agencies ltd. Since taking the grant I have heard nothing from them. The last year has been difficult, I was personally declared bankrupt in may the little business I started up hasnt made any money (declared a loss last year and this year I dont know how it will do) so I want to close my business, its not working out- i have no clients and its impacting on my family life.

Will I have to pay back the grant? Can they come after me for the money if I close my business down? Looking at the paperwork it says failiure to comply with the grant conditions for 3 years will lead to clawback of part or whole of the grant payment. Im terrified they will come after me when I am in a awful financial situation anyway. Can you help?

chalkie99

Hi,

Is your business run under your own name or as a Ltd Company?

Was the grant made to you personally?

If you have gone personally bankrupt was the grant and any other business debt included in this and, if not, why not?

Did the grant actually come from Consortium of enterprise Agencies Ltd? Just looking at their website it suggests to me that they point you towards someone else for grants rather than pay them themselves.

If you can answer these points we might be able to offer a bit more help.

paddyrg

Who did they give the money to? Yo individually, or the company? Was it a ltd company? Need more info - and I suggest a bowdlerised (ie copy with the personal info removed) version of the contract would be helpful!

Mistral001

A very high percentage of new businesses fail early on. The grants people will be used to it, even though they will want to give the impression that every firm the give grant aid to has gone on to be the next Richard Branston.

chalkie99

Mistral001 wrote: »

gone on to be the next Richard Branston.

Didn't he get himself into a pickle?

arrowarra

Sorry more info, its a sole trader company ie Bob Jones Electricians (but its not an electricians) with a cheque (2 actually) payable to the company and paid into a business account. There is no business debt but it has made a loss over all rather than a profit. I believe the cheque was from a a local enterprise trust under the umbrella of the consortium if that makes sense!

paddyrg

In which case it'll come down to the terms you signed up for. They probably have every right to pursue you personally for the money, but whether or not they will is another matter. What are the terms you agreed?

Mistral001

Has the OP actually breached any terms of the grants authority agreement? Is failing to make a profit a breach? I would be surprised if it was.

Grants people are picky about such things as insurances, keeping proper accounts etc. so perhaps things like that need to be chased up before "barely your soul" to anybody.