A few years back I applied for funding. Went in with a sound business plan in which they said it was a one of the better ones they'd seen for awhile.
However, I had a part time job and had a couple of NVQ qualifications so that instantly disqualified me for obtaining a grant. I wasn't from a disadvantaged background so didn't meet their lending criteria.
^ You're right there. Emma tried for funding once and was told "she'd be more likely to get funding if she was from a 'minority' group or had done some time in prison"...
It's a shame really. I'll bet there a many businesses out there that don't get off the ground because of their criteria. Knocks your confidence a bit when you first get a rejection.
A friend of mine started his (now very successful) business with a grant from The Prince's Trust, who were apparently very helpful indeed. He had served time in prison, and because of their ability to overlook that and award the funds based solely on his business plan, I've always held them in high regard.
However, Eagle's comments are interesting. Perhaps their idea of "equal opportunities" isn't as rosy as it might seem.
I had a similar thing actually, applied, great business plan apparently, perfectly viable for a loan, but because i had qualifications and management based experience, i wasnt disadvantaged enough, and they said no.
Still, i roll on, as im glad to see most people here do too
There are alternative grants available, have you spoken to your local business link office they would be able to tell you about grants available in your area.
Some alternatives to Princes Trust which is aimed at disadvantaged
Business Link - could fund certain items up to 80% but there are location issues and would have to be for consultancy type purchases such as Website development. You would need to find the other 20%.
Your Bank - if you can speak to your local bank manager and go through your business plan with them and cash flow forecasts - they may require some form of guarantee though unless you can get yourself a personal loan to fund the business.
Competitions - There are competitions such as the Pitch 2009 which is currently doing the rounds across the UK - you may be able to get into this if you havent missed it this year.
Also answer the questions
* Is funding absolutely critical before you can start?
* Can you sell your product or service first? We did this in the early days to fund some working capital.
Loans and Start-up Capital are not ALWAYS required and I think people do use this as the main barrier to entry but get creative...
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I had a loan from them starting out years ago now but I had to fight for it. They seemed to think that my parents could give me the money, as I had been at Cambridge uni and also thought it was going to be more of a hobby than a business
The panel to me didn't seem a fair representation of society! Fortunately I was able to pay off the loan fairly quickly and leave their system...
Not too keen but I guess they do help a lot of people..
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Prince's Trust Funding
and also thought it was going to be more of a hobby than a business 
