9-minute read
Small business grants can help you to grow your business with money you don’t have to pay back.
That being said, it’s important to do your research before applying for a business grant as eligibility can depend on a whole range of factors.
With this in mind, here’s a comprehensive list to help take some of the initial investigation effort out of applying for funding.
This guide gives an overview of a range of small business grants, both from the government and other organisations across the UK.
You can jump straight to the type of grant you’re looking for by following these links:
The government provides a range of grants for all different types of businesses. You could receive government funding for hiring an apprentice, doing valuable industry research, or taking steps to be more sustainable.
Here’s an overview of the small business grants available from the government:
Innovate UK provides government grants to “develop and realise the potential of new ideas, including those from the UK’s world-class research base”. Read about the Innovate UK grant.
Research and Development (R&D) tax reliefs support companies seeking to research or develop an advancement in their field (even if the project is unsuccessful). This means you can reduce your tax bill by claiming relief on things related to the research project, including staff wages, and project materials, and utilities.
You can claim R&D tax relief if you have:
Our guide to R&D tax relief explains more about what an R&D project is, as well as how to claim tax relief for it.
Although there’s no grant available, if you claim Universal Credit (UC) you may be eligible for a 12-month start-up period. This just means that your UC payments will be based on your self-employed earnings and you don’t need to look for other work. Our overview of self-employed benefits explains more.
You’ll also get support from a specialist work coach who’s experienced in working with self-employed people.
Another option to consider is a Start Up Loan, which could be useful if your business is less than two years old.
The government has more information on moving from benefits to work and starting your own business.
You can get financial help from the government to train an apprentice in your small business.
If your pay bill is less than £3 million a year, you won’t pay the apprenticeship levy. This means you get five per cent towards the cost of training and assessment for your apprentice, if the apprenticeship started on or after 1 April 2019.
The government pays their 95 per cent share directly to the training organisation. You also pay your share directly, according to a payment schedule you agree with the training organisation.
From 1 April 2024, apprenticeships in small businesses for anyone up to the age of 21 will be fully funded. This means the full cost of training will be covered by an additional £60 million of funding made available by the government.
The amount of funding that employers can pass on to other businesses through the apprenticeship levy is also being increased.
It’s estimated that these measures combined could lead to the creation of 20,000 more apprenticeships.
Use the government’s enquiry form to ask the National Apprenticeship Service about the funding available.
Businesses in rural areas may be eligible for vouchers towards the cost of installing new gigabit-capable connections. Vouchers are worth up to £3,500 for businesses.
Find out more about the gigabit voucher scheme and check if you’re eligible.
The government has made funding available to some local authorities in England that are introducing clean air zones. Make sure you keep up to date with the new low emissions zones in UK cities. And you may be eligible for a grant to support your business with upgrading your vehicles or paying for the new charges.
Find out more about the air quality grant scheme.
If you drive a van for your business, you can receive a government grant when you buy a low-emission vehicle.
You don’t have to apply for the grant, but you’ll get a discount when you buy the van. There are also vouchers available for installing an electric vehicle charge point at a workplace.
Read our guide on electric cars and vans for business for more information.
The Arts Council England has a number of grants and funds for creative businesses and organisations. Find out more on their website.
The application process will vary depending on the grant you’re applying for, however here are some general tips to get you started:
You can also ask your local authority about grants for small businesses available in your region and funding specific to your industry.
Just starting out as a small business owner? Make sure you read our guide to starting a business and don’t forget to organise business insurance.
If you're looking for financial guides and resources for your business, visit our cost of living support hub.
Simply Business runs an annual competition to support small businesses to set up or grow their business. Business Boost gives away a cash grant to one winning business that captures the imagination of our judges.
Our 2023 winner was awarded £25,000 for their eco-friendly, low waste wholefoods store and delivery service.
You can register your interest now and be the first to know about how you can win funding for your business.
A range of startup business grants are available depending on the sector you want to go into. For example:
This new business grant supports heritage projects ranging from designed landscapes to cultural traditions.
Heritage Grants offer funding at two levels:
Learn more about the National Lottery business grant.
The Prince’s Trust has helped over 90,000 young people aged 18 to 30 to start and run their own business. Besides funding and resources, they also provide training and mentoring.
The Prince’s Trust runs an Enterprise Course, which involves info sessions and workshops to help you launch your business.
You can apply for:
If you’re an entrepreneur who’s building a solution to social problems in the UK, check out UnLtd awards. If you’re 16 or older, willing to participate in learning, and working for the benefit of others, UnLtd could help you start out. They offer awards up to £18,000 across two separate startup packages.
Wondering what mentoring is all about? Read our article on the benefits of having a mentor for your small business to learn more.
Just starting your business? Read our side hustle guide for students to help plan where you want to go with your business and what funding you might need to get started.
A Simply Business survey of over 900 women business owners found that 45 per cent would like greater access to business funding to overcome the barriers they face.
There are some grants and awards aimed at female business owners, including:
Other financial help available to your small business will depend on where in the country you’re located, the size of your business, the industry you’re in – and whether you’re looking for business startup grants or funding to grow your business.
You can use the government’s finance and support online tool by selecting the ‘grants’ tick box. You can also filter by how long you’ve been trading (useful if you’re only looking for startup business grants), industry, number of employees, and region of the UK.
There’s also more information on the grants available in the different nations of the UK on the following portals.
The Local Enterprise Partnerships (LEP) Network website lists the 38 regional Growth Hubs. They’ve been set up to provide business funding, support and guidance in their local areas.
They make it easier for business owners to find the support they need by bringing together all of the available national and local business support in one hub.
You can search for business support available in your local area on the LEP Network website.
If you’re based in Scotland, you might be able to apply for a business grant from Scottish Enterprise.
These include:
Enterprise Ireland has a range of funding opportunities and grants for established businesses and startups. This includes funding for “high potential” startups, with awards of up to €1.2 million available.
Meanwhile, the British Business Bank launched a €70 million investment fund for small businesses in Northern Ireland.
The fund, opened in 2023 to close a “funding gap”, provides business owners with access to loans and investment programs.
If your small business is located in Wales, you can use the Welsh government’s Funding Locator to find and apply for various grants. Sources of funding include:
While not strictly a grant, the government does offer funding for training through the National Skills Fund. Eligible adults can access free Level 3 training courses, from horticulture and hospitality to business management and digital skills.
You could also look into free courses, for example in bookkeeping to help you run your business smoothly.
If you’re a larger company, the Help to Grow managementscheme is government funded and offers free training in management.
While being given money that you don’t have to pay back may seem like a win-win situation, business grants do have their downsides.
Here’s an overview of the main advantages and disadvantages to consider before applying for a business grant.
A small business loan is money for your business you’ll have to pay back within an agreed timescale. This is different to a small business grant, which you won’t be expected to pay back.
Some grants will be offered on the basis that you must also invest the equivalent amount in your business. For example, if you’re given a £10,000 grant, you’ll need to have £10,000 to invest too.
Read our ultimate guide to small business funding and investment for more information.
If you’re looking for small business funding but aren’t able to access the grants we’ve mentioned in this article, you may also want to consider:
Remember, business finance is a complex topic, so it’s important to speak to a professional financial advisor or accountant if you're not sure of anything.
What’s been your experience of getting funding for your small business? Let us know in the comments.
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Start your quoteWritten by
Conor Shilling
Conor Shilling is a professional writer with over 10 years’ experience across the property, small business, and insurance sectors. A trained journalist, Conor’s previous experience includes writing for several leading online property trade publications. Conor has worked at Simply Business as a Copywriter for three years, specialising in the buy-to-let market, landlords, and small business finance.
We create this content for general information purposes and it should not be taken as advice. Always take professional advice. Read our full disclaimer
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