The start-up grant scheme is partially funded from Europe

The local authority has awarded �77,500 to 71 new companies since the start of the new financial year in April.

An increase in demand for the grant means the council may not be able to issue more money until next year.

Businesswoman Kristina Jackson, from Aberporth, claims she was told not to apply for a grant as money had run out.

Mother-of-two Mrs Jackson is setting up an online directory with a business partner in Cardigan.

"I had wanted to apply for �2,000, but was told it wasn't worth applying because there were no more funds available until 2008," said Mrs Jackson.

Mrs Jackson has been told not to apply for a grant

"This will leave my business and a lot of others in a very tricky situation. I had wanted to buy a lap-top computer and office furniture with the grant."

Ceredigion Council said the start-up grants scheme had been successful.

A spokeswoman said: "The amount of grant funds available each year has remained fairly constant, but we've not experienced this level of demand for business start-up grants for over five years."

The council said it had received 71 applications for money which had helped create 80 new jobs, and as a result funding levels for the grant were "low".

The spokeswoman added: "The authority will look forward to replenishing resources using new European funding and its own resources in 2007/08, and will consider whether it is possible to give support for the remainder of this year."