Table of Contents
- What is a small business grant?
- How to apply for small business grants
- What small business grants are available in the UK?
- What start-up business grants are available across the UK?
- Science, product development and research grants for UK businesses
- Small business and start-up grants in England
- Small business and start-up grants in Scotland, Wales and Northern Ireland
- Other forms of business financing
Perhaps you’re looking to take the first steps on your business journey, or maybe you’re an established small business owner and you just need a bit more money to take your business to the next level. In either case, small business grants and start-up business grants may be the key to unlocking the potential of your business.
While there are various funding options available for UK small businesses – including business loans and start-up business loans – small business grants are among the most sought after. Small business grants can provide an injection of capital when your small business or start-up needs it most. The best part is that, unlike a business loan, small business grants don’t usually have to be repaid.
If you run a UK-based small business or start up, you may be able to take advantage of a range of small business grants and start-up grants currently available in the UK. Read on for more information about various small business grants and discover how you can access specific small business funding in England, Scotland, Wales, or Northern Ireland.
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What is a small business grant?
Small business grants and start-up business grants are sums of money that are normally given to small businesses to achieve a specific purpose or accomplish a specific project.
For example, small business grants may be provided to pay towards the cost of training, employment, expansion, research, property improvements, or to revitalise a local area.
Small business grants come from supranational, national, regional and local sources. They are available for a range of industries and are usually non repayable.
Start-up business grants and small business grants are essentially the same thing. The difference is that start-up grants tend to be specifically for getting new businesses off the ground – which could mean they come with different requirements or offer additional business support alongside the funding.
Each small business grant comes with different guidelines and eligibility criteria. Because they are so competitive, many grants have a fairly lengthy application process, and your firm could be up against many others for the same pot of funding.
The British Business Bank estimates that fewer than 10% of business grant applications are successful, but don’t let that put you off. The right grant, at the right time, could be transformative for your firm.
What is the difference between a small business grant and a loan?
The most important difference between a small business grant and a business loan is that a loan must be repaid, while a grant normally does not. This is why small business grants tend to be so competitive.
However, bear in mind that some small business grants may be partially or conditionally repayable. Always check thoroughly before applying and make sure you understand the terms of the grant.
How to apply for small business grants
Each business grant, whether for small businesses or start ups, will have its own application process. However, there are some general steps you can follow to try to ensure you have the best shot possible at submitting a successful application.
- Do your research: Find out exactly what the provider of the grant is looking for, so you can tailor your application accordingly. This will also help you avoid wasting time on small business grants you aren’t eligible for.
- Apply as early as possible: Some small business grant pots may dwindle as time goes on, so applying early could boost your chances of securing funding.
- Keep on top of deadlines: Don’t miss out on a small business grant by letting an application deadline pass you by. Make a note of when you need to submit your proposal.
- Be clear: Try to avoid getting bogged down in technical jargon or overly complicated language. You want your proposal to be simple and easy to understand.
- Be specific: Describe clearly what your business does and how you meet the eligibility criteria. Also be specific in stating what you will use the grant money for and what aims and outcomes you are looking to achieve.
- Be thorough: One of the best ways to show why you should receive a grant is by providing a detailed business plan. It may even be a requirement of the application.
» MORE: How to write a business plan
What small business grants are available in the UK?
The number and availability of small business grants across the UK frequently changes, as deadlines expire and new schemes are introduced.
It is important to bear in mind that the following list of UK small business and start-up business grants is not exhaustive. There may be other small business grants available that are specific to your locality or industry.
You can also check for the most up-to-date small business and start-up business funding options by searching for your local Business Board Network Growth Hub or by using the government’s business funding search tool.
Sectors: Not for profit
Amount: Varies based on location and grant requested
This fund has a number of different grants available to organisations, with the overall aim of promoting the conservation and sustainable reuse of historic buildings. The exact aims and details of each grant varies between home countries. Organisations can find grants to fund feasibility work into a project and then receive further grants for developmental and larger project costs.
Construction Industry Training Board (CITB) Grants
Sectors: CITB-registered employers
Amount: £500 work experience grant plus £1,000 employment grant after three months of direct employment. For employers of apprentices, grants are available to cover £2,500 per year for attendance and £3,500 for achievement.
Employers in the construction industry can apply for business funding to contribute towards the costs of training their employees. The CITB also offers separate grants for employers who take on apprentices or trainees working towards various qualifications. Note that this scheme isn’t available to businesses based in Northern Ireland.
Gigabit Broadband Voucher Scheme
Sectors: Small and medium-sized enterprises (SMEs)
Amount: Up to £4,500
SMEs and sole traders without access to gigabit-capable internet connections in rural areas may be able to apply for a broadband voucher to upgrade their connection.
Sectors: Senior leadership at businesses older than a year, with five to 249 employees
Amount: 90% of course fees
With Help to Grow: Management, you can attend a 12-week course, with one-to-one mentoring, that is 90% funded by the government, leaving you to pay £750 per person. It is for senior leaders who want to develop their skills and strategies.
Sectors: Various
Amount: Various
There are numerous innovation competitions that can help small businesses access funding. The link above on Gov.uk is updated regularly. New opportunities frequently arise across many different sectors, with new competitions opening as others close.
Knowledge Transfer Partnerships (KTP)
Sectors: Any (in partnership with academic/research organisation and qualified graduates)
Amount: Up to 67% of project cost for SMEs, up to 50% for large companies, and up to 75% for third sector organisations. Total costs can range between £80,000 and £100,000 per project year.
A Knowledge Transfer Partnership can help your business get the specialist skills and expertise it needs to fulfil an innovative project and bring about change. The grant contributes to the costs of hiring a suitably qualified graduate, while also giving your business access to specialist resources, expert input and consultancy, and a range of support from the wider network.
The National Lottery Community Fund
Sectors: Community, charity, not-for-profit, voluntary
Amount: Smaller grants between £300 and £20,000; larger funding up to £500,000
The Community Fund aims to bring a positive impact to local communities by building strong relationships, bringing people together, improving spaces in the local area, and supporting people as they reach their potential. It contains many types of funds, from smaller grants between £300 and £20,000, to larger funding up to £500,000.
The National Lottery Heritage Fund
Sectors: Charities, community groups, non-for-profits and relevant individuals
Amount: From £10,000 to £10 million
The Heritage Fund is designed to help heritage projects – whether national, regional or local – aimed at boosting the local economy and creating better places to live, work, and visit. The grants can be used for a wide range of projects including training costs, repair and maintenance, professional fees and other heritage-focused activities.
Trusthouse Charitable Foundation
Sectors: Charities, not-for-profit
Amount: £2,000 to £10,000 to cover up to 50% of costs (Small Grants Programme for organisations with annual income under £250,000); £10,000 to £100,000 (Major Grants for voluntary organisations with turnover up to £500,000)
Organisations can receive a grant from Trusthouse to help with running costs or one-off capital costs for projects that will help solve either rural issues or urban deprivation.
Sector: Start ups as well as retail, hospitality, and leisure businesses (provided the funds are used to visibly improve facilities). Also funding for small and medium-sized businesses seeking to adopt new innovations, or adopt productivity-enhancing, energy-efficient and low carbon technologies and techniques, and start or grow their exports.
Amount: Various
The UK Shared Prosperity Fund was part of the previous Conservative government’s “levelling up” agenda. The Labour government has since dropped the phrase “levelling up”, but the grant remains as a domestic replacement for the European Structural and Investment Programme. The fund aims to make people more proud of where they live and improve life chances throughout the UK, with £2.6 billion allocated until 2025. One of the investment priorities is to support local businesses.
UnLtd Social Enterprise Funding
Sectors: Social businesses
Amount: Up to £8,000 for social businesses that have been trading for less than one year; up to £18,000 for social businesses which have been trading for one to four years.
These awards are designed to help businesses targeting lasting social change. For businesses that have been up trading over a year, UnLtd offers grants of up to £18,000 in order to help you grow and expand.
What start-up business grants are available across the UK?
Although not strictly a start-up grant, the Seed Enterprise Investment Scheme (SEIS) can help raise funds for early-stage businesses in the UK.
SEIS promotes investment into early-stage companies by offering tax relief to individual investors in your company. Your start-up can raise no more than £250,000 in SEIS investment, and you will need to make sure you adhere to the scheme’s rules to ensure your investors continue to receive their tax relief.
There are also various location-specific start-up business grants available across the UK.
Check out our guides to the best start-up grants in England, Wales, Scotland and Northern Ireland to learn more about the start-up grants available in each of the home nations.
Science, product development and research grants for UK businesses
If you work in the science and research sectors, or are looking to develop a new product, you may be able to get assistance through various grants and schemes available to UK businesses.
Aerospace Technology Institute (ATI) Programme Funding
The ATI funds research and technology development to maintain and grow the UK’s competitive positions in civil aerospace. Grants are available for UK businesses carrying out aerospace research in the UK which adheres to the requirements of the ATI’s non-CO2 technology roadmap. Firms can apply for funding up to £18 million, covering up to 60% of total project costs. Your organisation will be responsible for covering the difference.
Grant funding from Innovate UK – the UK’s national innovation agency – is available to help businesses of all sizes realise the potential of new technologies, develop ideas and make them a commercial success. Innovation grants are worth between £25,000 and £10 million. While any innovation or technology project could be eligible for funding, applications may be tailored around artificial intelligence and data, the ageing society, clean growth, and the future of mobility.
While not technically a grant, R&D tax relief can provide free funding if your business is trying to innovate in the science and technology sector. If you are an eligible small and medium-sized enterprise (SME), you can deduct 86% of your qualifying costs from your yearly profit, on top of the usual 100% deduction, giving a 186% total. If your business is loss making, you can instead claim a tax credit worth up to 10% of the surrenderable loss.
UK Research and Innovation (UKRI) is a public body sponsored by the Department for Science, Innovation and Technology. You can search for current funding opportunities on the UKRI website.
Small business and start-up grants in England
Small businesses and start-up businesses based in England can access a range of specific grants which aren’t available throughout the wider UK.
For a run-down of some of the best small business grants and start up grants in England, check out our dedicated guide to grant funding for English small businesses.
Small business and start-up grants in Scotland, Wales and Northern Ireland
Just as in England, specific small business grant schemes are available in the rest of the home countries.
To find out more about grant schemes for small businesses and start ups in Scotland, you can visit our dedicated guide to small business grants and start-up grants in Scotland.
For information on the various schemes available in Wales, meanwhile, you can read our guide to small business grants and start-up business grants in Wales.
And for a summary of some of the grants on offer to small businesses and start ups in Northern Ireland, you can read our guide to small business grants and start-up business grants in Northern Ireland.
Other forms of business financing
If you are unsuccessful in applying for a business grant, there are a few other ways you can try to secure funding, including asset financing and invoice financing. If you are in need of money to launch a start-up business, you may even be able to borrow much needed seed capital from friends and family.
You could also go down the crowdfunding route and try to raise money directly. You could even look for an angel investor to help expand your business.
Meanwhile, if your small business is already up and running, you can always consider using a business credit card to help with your firm’s cash flow.
There are also traditional business loans, which can help you access the funds you need to grow your organisation. Start-up business loans may also be an option, depending on how long you’ve been trading and what sort of business funding you’re looking for.
Beyond those options, there are many other different kinds of business loans which might be a fit for your organisation.
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