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If you’re looking for a cash boost for your Scottish business, you may have explored various borrowing and funding options, but have you considered a small business grant or a start-up business grant?
Small business grants are designed to help businesses grow while also bringing wider benefits, such as to the local community or the environment.
Small business grants may come with various strings attached, or there may be certain eligibility requirements your business has to meet. However, grants are an extremely popular (and competitive) way to fund a new or growing business.
If you’re a start-up founder or small business owner based in Scotland, the good news is that you may be able to take advantage of a range of Scotland-specific small business grants and start-up business grants.
Below, we take a look at small business grants and start-up business grants are available in Scotland.
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What is a small business grant?
A small business grant is typically a non-repayable sum of money, used to fund a business activity.
Most small business grants have quite specific requirements, including being used for certain purposes, which means you should carefully consider which ones you apply for.
Start-up business grants are similar to small business grants. The key difference is that start-up business grants are usually designed explicitly to help new businesses get off the ground or cover one-off start-up costs.
While most small business grants and start-up business grants are non-repayable, some may be partially or conditionally repayable. Make sure you understand the funding and repayment structure of the grant before applying.
Alongside small business and start-up business grant funding in Scotland, there are also a range of small business grants across the UK. Similarly, there are grants available for specific groups, such as business grants for women.
National small business grants in Scotland
If you’re a founder or a small business owner based in Scotland, there are a range of small business and start-up business grants that could be right for your firm.
We’ve collated some of the best Scottish small business grants below, but you can also find signposts to a wide range of funding and support specific to your business through the Scottish government website.
Culture & Business Fund Scotland
Eligible regions: Scotland
Sectors: Non-profit culture organisations delivering cultural activity which have attracted a business to sponsor a project or aspect of their work,
Amount: £1,000 to £10,000
Details: The Culture & Business Fund Scotland (CBFS) encourages businesses to sponsor arts and heritage projects in Scotland. Cultural organisations that have already secured business sponsorship can apply to the C&BS Fund for additional funding worth up to £1 for every £2 invested by business partners.
Regional Selective Assistance (RSA) Grants
Eligible regions: Those covered by Scottish Enterprise (Aberdeen City and Shire, the east of Scotland, Tayside and the west of Scotland)
Sectors: Small and medium-sized enterprises (SMEs) and large businesses
Amount: A minimum grant of £150,000 (covering up to 35% of eligible costs for SMEs and 15% for large enterprises)
Details: This grant is aimed at capital investment and job creation in the areas covered by Scottish Enterprise. Any project applying for an RSA grant must last between six and 36 months, and the amount of funding available will vary based on location and business size.
SMART: SCOTLAND
Eligible regions: Scotland
Sectors: SMEs, university spin-outs and individuals
Amount: Up to £100,000 (70% of eligible costs for a small enterprise, 60% for a medium enterprise)
Details: The SMART: SCOTLAND grant is a research and development grant designed to fund the conduction of feasibility studies for ‘high-risk, highly ambitious’ projects, lasting between six and 18 months. If applying, your project will need to represent an advance in technological innovation for your chosen UK industry or sector.
Small business grants in Eastern Scotland
Some Scottish small business grants are region-specific. The below grants are for businesses based in the east of Scotland.
Nestrans Sustainable Travel Grant Scheme
Eligible regions: Aberdeen and Aberdeenshire
Sectors: SMEs
Amount: £500 to £10,000 to cover up to 50% of costs, 50% match funding (Sustainable Travel Grant Scheme); up to £5,000 and up to 100% of costs (Community Sustainable Travel Grant Scheme). For the Community scheme, recipients of funding are expected to demonstrate their commitment by a contribution (or contribution in kind such as volunteer hours or resources) to the project.
Details: The Sustainable Travel Grant Scheme is focused on improving the development of travel plans and travel awareness, and helping businesses to implement sustainable travel initiatives. Funding could be for measures that encourage a business and its staff to travel in a greener way, such as:
- secure cycle parking facilities
- changing rooms
- improvements to pedestrian access
- employee training
The Community Sustainable Travel Grant Scheme is for community groups, registered charities or social enterprises. Currently, only the Community scheme is open to new applications.
Orkney Business Grants
Eligible regions: Orkney Islands
Sectors: SMEs, with some grants focusing on target sectors, including tourism, food and drink, low carbon and renewable energy, creative and manufacturing, knowledge and technology, service, and community-based social enterprise.
Amount: Varies
Details: Orkney offers many business grants that aim to improve the local economy and create new, sustainable jobs. These include:
- Flexible Business Development Grant: Open to SMEs with a business development project with measurable predicted outcomes. Grants of up to £5,000 for up to a maximum of 50% of eligible project costs.
- Graduate Placement Scheme: Graduate placement grant up to £15,000 of up to 50% of total wage and National Insurance costs; postgraduate placement up to a maximum of £10,000 of up to 30% of the total wage and National Insurance costs.
- Economic Development Grant Scheme: Support of up to £55,000 at a rate of up to 30% of costs, towards capital expenditure. A minimum £10,000 of eligible project cost applies, which can include the construction of new buildings or the improvement of existing buildings.
- Rural Shop Improvement Scheme: Support for improvements for shops outside the town of Kirkwall, in Orkney selling staple foods and household goods. The minimum eligible project cost is £500, with the maximum of £10,000 over a rolling three-year period.
- Tourism Grant Scheme: For tourism projects that help deliver a high level of customer service to visitors, such as through upgraded accommodation. Grants of up to 30% of eligible costs are available, with a maximum of £55,000 for upgrades.
- Small Business Training Grant: Support to upgrade skills and develop your workforce training. It’s a grant of up to 90%, up to a maximum of £1,000 (minimum £250), towards non-statutory staff training.
Shetland Islands Economic Development Grant Scheme
Eligible regions: Shetland Islands
Sectors: SMEs
Amount: From £1,000 to £25,000 (up to 50% of project costs)
Details: Businesses in the Shetland Islands can apply for a grant worth a maximum of £25,000, for projects related to a range of outcomes, including improving product quality, productivity or service quality, introducing new business activities, or implementing a new market development.
West Lothian Business Grants
Eligible regions: West Lothian
Sectors: SMEs
Amount: Varies
Details: West Lothian offers a number of business grants for SMEs in the region, including:
- Low Carbon/Energy Efficiency Grant: Businesses that want to overcome barriers related to becoming low carbon or energy efficient can apply for a grant of up to £8,000.
- Growth Assistance Project: Businesses with project costs totalling at least £100,000 can apply for the Growth Assistance Project. A typical grant is worth £45,000.
- Training Grant: Businesses seeking to train their workforce can apply for a grant worth between £10,000 and £50,000.
- Economic Recovery Fund: Local businesses looking to invest in skills training, retraining of new staff, market development, job creation or social inclusion can apply to the Economic Recovery Fund. The average grant is worth £20,000.
- Digital Development Grant: VAT registered businesses can apply for a grant worth £7,500 against a digital development project totalling £15,000. Businesses that are not registered for VAT can receive up to £1,000 for a project totalling £2,000.
- Project Grant: Businesses can receive a grant worth £7,500 against eligible capital expenditure of £15,000.
- Graduate Recruitment Fund: Businesses employing graduates in roles relating to cyber security, STEM fields or environmental sustainability can receive a grant of £10,000. The graduate must be employed in a position that lasts for more than 12 months and have a minimum salary of £25,000.
- Innovation Grant: Businesses can receive between £2,000 and £5,000 to help with new projects or ideas, feasibility studies, or innovation within their workplaces, processes or products.
- Employer Recruitment Incentive: This scheme will fund 50% of the salary of a new employee who works 16 to 40 hours a week and is paid the Real Living Wage of £12 per hour. The employee must be a West Lothian resident and either 16 to 24 years old and currently unemployed, aged 25-plus and unemployed or a parent with a dependent child. The scheme’s funding lasts for 26 weeks. The project must be completed by 1st March 2025.
- Trade Development Grant: Businesses can receive between £250 and £2,000 to aid with the cost of marketing their goods at exhibitions, with funding covering up to 50% of eligible costs.
Small business grants in Western Scotland
Below are some of the small business grants available in the west of Scotland:
East Ayrshire Business Grants
Eligible regions: East Ayrshire
Sectors: SMEs
Amount: Varies
Details: Businesses in East Ayrshire can apply for a range of grants, including:
- Net Zero Support Grant: Businesses aiming to reduce their carbon emissions can apply for a grant covering 50% of approved project costs, up to a maximum of £3,000.
- Community Wealth Building: Projects that promote economic recovery, inclusivity and equality, or tackle the climate crisis or other issues in Ayrshire, can apply for grants between £1,000 and £25,000.
- Business Growth Grant: Eligible businesses looking to implement growth plans can apply for a grant worth between £500 and £3,000, to cover 40% of project costs.
- Energy Audit Voucher Scheme: Grants of up to £2,500 are available to help businesses tackle rising energy costs and the climate crisis.
- Mini Capex Grant Support Fund: Grants of up to £1,000, to cover 50% of project costs, are available for businesses seeking to implement measures to reduce their energy costs.
- East Ayrshire Recruitment Incentive Grant: Businesses can receive up to £5,000 to aid with recruiting and employing an eligible East Ayrshire resident. Employees must work for at least 16 hours per week and be paid at least the minimum wage.
- Ayrshire Skills Investment Fund: Employers supporting skills development in the engineering, digital, visitor economy or clean growth spaces can apply to receive up to £1,800 per employee. The priority groups for this funding are young people, women, those with long-term health conditions and those in low-paid employment.
East Renfrewshire Business Grants
Eligible regions: East Renfrewshire
Sectors: SMEs
Amount: Varies
Details: East Renfrewshire Council offers a number of business grants. These include:
- Small Business Assistance Growth Grant Funds: Established businesses that have been trading for over 12 months can apply for match-funded grants of £1,000, based on annual turnover of £50,000 or more, the size of the workforce, growth plans and trading history.
- Get to Zero – Green Jobs Training: Businesses trading for longer than 12 months with annual turnover of at least £50,000 and at least one employee can apply for a match-funded training grant. The maximum grant available is £1,000.
- SBA Get to Zero Grant: For help with reducing your carbon footprint and improving energy efficiency, businesses based in commercial premises and with an annual turnover of at least £50,000 can apply for a match-funded grant worth up to £10,000.
- Micro Grant Funds: Small businesses with an annual turnover between £10,000 and £50,000 a year, which trade for at least 16 hours a week and have been running for more than three months, can apply for a series of micro grants. This includes up to £500 for purchasing equipment, up to £500 for eCommerce activities,up to £250 for health and wellbeing policies and up to £250 for testing of products and processes.
Inverclyde Business Grants
Eligible regions: Inverclyde
Sectors: SMEs
Amount: Varies
Details: Some of the small business grants in the Inverclyde region include:
- Business Marketing Grant: Up to £1,000 to cover up to 100% of eligible costs to help local businesses undertaking non-digital marketing activities in the area.
- Property Assistance Scheme: Up to £10,000 to cover up to 50% of costs related to projects involving commercial premises, including general improvements, signage, and security measures..
- Business Assistance Grant: Up to 50% of eligible capital expenditure costs, designed to help businesses meet specific growth objectives, with a maximum grant of £5,000.
- Business Training Grant: Up to 100% of total costs, with a maximum contribution of £1,000, to cover non-digital training activities for management and key workers.
- Grant for Tourism Businesses: A grant worth up to £2,000, to cover a maximum of 100% of capital expenditure costs related to tourism businesses in the area.
- Capital Equipment Grant: Covers 100% of eligible capital expenditure on help for businesses to meet specific growth objectives. Maximum contribution is £2,000.
Renfrewshire Business Grants
Eligible regions: Renfrewshire
Sectors: SMEs
Amount: Varies
Details: Renfrewshire Council has a variety of business grants for local organisations. These include:
- Net Zero Grant: Businesses looking to make changes to their premises and operations in order to cut their carbon footprint can apply for a grant covering up to 50% of project costs, to a maximum of £10,000.
- Business Resilience Grant: Businesses, including self-employed people, can apply for a grant worth between £1,000 and £10,000, covering up to 50% of project costs related to growth.
- Training Grant: Manufacturing and business-to-business (B2B) organisations can apply for a training grant worth £2,000.
- Digital Development Grant: Businesses can receive between £1,000 and £10,000, covering up to 50% of capital expenditure, to support development and implementation of new digital systems which stimulate growth and improve performance.
- Retail Improvement Scheme: This grant can cover 70% of the cost of improvements, upgrades, repairs or restoration to the fronts of shops, businesses and commercial premises. Grants are worth between £1,000 and £12,000.
- Town Centre Premises Grant: Businesses moving into empty, ground-floor, commercial premises in Paisley, Johnstone, Renfrew, Linwood or Erskine town centres could receive up to £25,000 through this grant, which covers as much as 50% of project costs.
West Dunbartonshire Business Grants
Eligible regions: West Dunbartonshire
Sectors: Business-to-business (B2B) SMEs and start ups
Amount: Varies
Details: There are a variety of grants available for the businesses of West Dunbartonshire including:
- Shopfront Improvement Grant: Retail businesses that want to make external improvements to their high street property can apply for a grant of up to £10,000, worth 80% of project costs. Applications are currently closed, but interested business owners should check back occasionally in case the scheme reopens.
- Recovery & Growth Grant: Businesses looking to implement growth or recovery projects that will safeguard or create jobs can apply for a grant worth a maximum of £10,000, covering 50% of eligible costs.
- Enhancing Tourism Events & Attractions Grant: Businesses looking to create new events or visitor attractions, or enhance existing activities, can apply for a grant worth up to £10,000.
- Social Enterprise Growth Grant: Social enterprises in West Dunbartonshire can apply for a grant worth up to 50% or their project costs, to a maximum of £2,000.
- Towards Net Zero Grant: Businesses implementing energy and efficiency improvements may be able to receive £10,000, covering up to 50% of approved project expenditure.
- Business Development Grant: Growth projects conducted by established businesses can receive as much as £3,000 to cover up to 50% of project expenditure.
Start-up business grants in Scotland
While some of the grants mentioned above may be available to start ups, the following are exclusively for new and early-stage businesses in Scotland:
East Ayrshire Council Business Start Up Grant
Eligible regions: East Ayrshire
Sectors: Start ups and new businesses trading for less than 12 months
Amount: From £500 to £1,000 (up to 50% of total costs)
Details: New businesses in East Ayrshire can apply for a business grant worth up to 50% of their project costs in order to meet their specific needs and initial ambitions.
Fife Start-Up Grant
Eligible regions: Fife
Sectors: Start ups or new businesses trading for less than six months
Amount: £500
Details: Start ups in Fife can apply for a grant worth £500 to help towards trading costs, such as buying equipment, stock and certification.
Inverclyde New Business Start Up Grant
Eligible regions: Inverclyde
Sectors: Start ups and new businesses
Amount: £750
Details: New businesses in Inverclyde can apply for a grant worth up to 50% of total costs (excluding VAT) to a maximum of £750. This is to cover capital expenditure relating to starting to trade in the area.
Orkney New Business Start Up Grant
Eligible regions: Orkney Islands
Sectors: Start ups and new businesses trading for less than six months
Amount: £500 to £1,500
Details: Aims to drive up the competitiveness, growth and survival rates of start ups that create local employment opportunities, support communities in fragile rural areas and contribute to the local economy.
Renfrewshire Council New Business Start-Up Grant
Eligible regions: Renfrewshire
Sectors: Start ups
Amount: from £300 to £1,000 (up to 50% of costs)
Details: New businesses working with Renfrewshire Council’s Business Gateway adviseors who have attended at least three start up workshops can apply for a grant worth between £300 and £1,000.
Shetland Business Start Up Grant
Eligible regions: Shetland Islands
Sectors: Start ups and new businesses trading for up to 12 months
Amount: £500 to £4,000 (up to 100% of eligible costs)
Details: Start ups on the Shetland Islands can apply for a grant worth between £500 and £4,000 to fund a viable full-time business.
West Dunbartonshire Business Start Up Grant
Eligible regions: West Dunbartonshire
Sectors: Start ups
Amount: £500
Details: Individuals over the age of 18 can apply for a business grant worth £500 to cover start-up costs. A business plan and proof of trading must be submitted when applying for the grant.
West Dunbartonshire Early Stage Growth Grant
Eligible regions: West Dunbartonshire
Sectors: Start ups
Amount: up to £1,500 (50% of project costs)
Details: New businesses facing higher start up costs due to operating from commercial premises, or hiring full-time employees, can apply for an extra Early Stage Growth Grant worth up to £1,500 to cover 50% of project costs.
West Lothian High Growth Start-up Grant
Eligible regions: West Lothian
Sectors: Start ups (first 18 months of trading)
Amount: up to £4,000
Details: New businesses in commercial premises with at least one employee, which are VAT registered or have a turnover greater than £60,000, can apply for a grant worth £4,000. This can be used to bring products to market, attend trade events and build business capacity.
Small business grants and start-up business grants in the UK
As well as small business grants and start-up grants specific to Scotland, entrepreneurs north of the border may be able to take advantage of a range of UK-wide small business and start-up business grants.
And for business owners based elsewhere in the UK, you can always turn to our guides to the best start-up and small business grants in Wales, England and Northern Ireland.
How to fund a small business or start up
If grants are out of your reach, or you want a different type of funding to help your business – whether that means getting high-value equipment, improving cash flow or paying for growth projects – there are other funding options that might be available to your start-up or small business.
These include:
- business loans
- start up loans
- invoice finance
- asset finance
- peer-to-peer loans
- merchant cash advance
- angel investment
- crowdfunding for business
- business credit cards
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