Running a care home can be expensive. Maintenance costs, wages and other expenses often add up to more than local authority funding, NHS payments and private fees.
Unless your care home receives a lot of charity funding, making ends meet can be hard. Things get even more challenging if you need to replace medical equipment or upgrade your building.
If you’re looking for financial inspiration, you’re in the right place. We’ll explore a few different resources in this post, including grants and loans you can use to pay for projects at your care home.
Before you begin
Working with a consultant can help you figure out what type of funding you need and how much to apply for. Options include:
- Focus Business Consultancy. This Scottish Care Preferred Supplier specialises in “health checks” for businesses.
- BRE Group. This independent organisation can help you identify the best energy efficiency upgrades for your building.
Funding for essential projects
Before you dip into your business overdraft or take out a traditional short-term loan, consider these helpful funding options.
Government-backed schemes
One of the best ways to get business funding is through your local authority. Councils nationwide offer finance options, business growth programmes and support to local companies. To see what’s available near you, visit the finance and support for your business page on GOV.UK.
Grants for care homes
If you qualify for a grant, go for it. In most cases, you won’t have to pay back the grant money you receive. You can search for grants and charitable business funds via Grants Online, WRAP and Let's Talk.
The Screwfix Foundation
Want to extend your home or perform vital repairs? The Screwfix Foundation is a charitable foundation that supports the development of various building projects, including not-for-profit care homes. It works with recipients all over the country and offers up to £5,000 in funding.
Crowdfunding
If you have a lot of money to raise, consider crowdfunding. Sites like GoFundMe, Crowdfunder and JustGiving are easy to use, and you can share your campaign via email or on social media.
Commercial remortgage
If you run an independent care home and have a lot of costly building or remodelling work to do, you might benefit from a commercial remortgage.
Remortgaging is a major commitment. So before signing on the dotted line, consider other forms of funding and speak to your bank about interest rates, repayment periods and other options.
Paying for energy-saving improvements
If you need to upgrade your insulation, windows, doors or heating system, or make other energy-efficient improvements to your care home, check if you’re eligible for grants and low-cost loans.
Repayments on low-cost loans are often cheaper than paying extra utility costs associated with an inefficient building, so they’re worth looking into.
If you don’t have a recent Energy Performance Certificate, consider getting an inspection done before applying for grants. EPCs are valid for 10 years.
Council funding
Your local council might provide energy efficiency funding or sustainable business growth grants, too (you’ll typically need to submit a business case to apply). Some improvements could also be eligible for business innovation funding.
Grants for eco-friendly projects
Check for grants aimed at low-efficiency buildings rather than those aimed at care facilities. You can find government grants for energy-saving initiatives at GOV.UK and private or charitable grants for energy-saving projects at the sites we mentioned earlier.
Energy supplier initiatives
Energy companies sometimes offer small businesses energy-efficiency schemes or grants. Eligibility criteria and availability vary depending on things like:
- The size of your business.
- Your location.
- Your business sector.
Contact your energy supplier to find out what they offer.
If you’re thinking about a renewable power scheme (like a wind turbine or solar panels), see if you can get paid for the extra power you generate through the national Smart Export Guarantee scheme.
The Carbon Trust Green Business Fund (Wales)
The Carbon Trust could pay up to 30% of your project cost (up to a maximum of £10,000). You can get energy-saving equipment like new lighting, heating, or a control system installed in your care home.
To find even more resources for funding your energy savings through grants, visit Ofgem.
Green finance loans
Need a loan to fund your green upgrades? Banks like Barclays and NatWest offer low-cost business loans for energy-efficient improvements.
If your care home is in Scotland, you could apply for an SME loan worth up to £100,000 or a cashback grant for up to £30,000 for installing eligible energy-efficiency equipment.
Don’t forget tax incentives
Finally, remember to claim capital allowances on equipment (including energy-efficient modifications) you use in the care home. You can deduct the costs of these from your profits before tax. To find out more, visit GOV.UK.
Funding the best possible care
With so many financial resources available, it’s essential to do research, ask for advice and compare options before making a decision. We hope the ideas in this post help you fund projects that make your care home the best it can be.
Hundreds of care homes use us to cut costs, fill temporary shifts and hire permanent nurses, care assistants and support workers. Ready to join them? Click here to book a demo today.
You might also be interested in:
- Staffing at your care home: 10 reasons to choose Florence
- We’re now a Scottish Care Preferred Supplier
- Florence becomes founding partner of Championing Social Care
