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Every Penny Counts

 

Every penny counts for new businesses. It’s estimated that 20% of start-ups fail within their first year, which means that a helping hand could be the lifeline they need to keep going.

Whether your store needs a renovation or you have an exciting project in the pipeline, a cash injection can be a vital source of funding for many start-ups or SMEs in the UK. However, applying and successfully securing them can sometimes feel like an uphill challenge.

In this article, we’ll break down some of the best government grants available for your business. We’ll include who’s eligible, the key features of each grant, and how you can apply.

 

A business grant is essentially provided by government bodies, corporations, or non-profit organisations to help businesses achieve specific goals. A grant could offer financial aid to help companies cover the cost of training their employees, or for tools or research required to expand their market. There are also more and more business grants aimed at helping companies become more sustainable, which supports the UK government’s net zero goal of reducing carbon emissions by 2050.


Each business grant offers something different and will have specific guidelines and eligibility criteria. As grants can provide life-changing benefits, they tend to be relatively competitive and have a lengthy application process as there may be hundreds of applications to review. Some grants can be awarded within a few weeks, but others may take many months to hear back from.

Key characteristics of business grants:

  • Non-repayable – Grants provide financial support that does not need to be repaid, making them a risk-free source of funding.
  • Specific – Each grant is designed for a particular objective — whether it's fostering innovation, supporting local economies, or enhancing technical skills — and businesses must use the funds accordingly.
  • Competitive – Securing a grant can be challenging due to the high competition and specific conditions tied to the funding. Successful applicants must adhere to strict guidelines and often show how the grant will achieve its intended purpose.
  • Diverse sources and sectors – Grants are available from various levels, including national, regional, and local sources. They cater to various industries, particularly active sectors like energy and innovation.

What’s the difference between a business loan and a grant?

 The main difference between a business loan and a grant is that loans need to be repaid with interest, whereas grants usually don’t. However, this might not always be the case, and some providers may set certain conditions for how a business can spend the money or offer grants that are partially repayable.

Business loans are usually offered by high street banks and private lenders, while grants are often awarded by the government or charitable organisations to support start-ups and small businesses.

Most grants offer a free lump sum of money without any pressure to repay it, so they tend to be highly sought-after and very competitive to secure.

What types of business grants are there?

 

There are hundreds of grants available for businesses to help them invest in new equipment, training, and expansion. However, it’s worth noting that not all grants are in the form of a lump sum of money.


Here’s a quick breakdown of different types of business grants:


  • Direct grants – When a business receives a fixed amount of money to help towards essential start-up costs like equipment, staff, or training. Direct grants can be a substantial financial aid for businesses looking to get off the ground.
  • In-kind grants – Instead of direct financial support, in-kind grants provide resources or services like equipment, software, or expert consultancy. They’re excellent for businesses that need specific tools or expertise to grow but can’t afford the cost of financing them.
  • Voucher schemes and discounts – These grants offer vouchers or discounts that businesses can use to purchase services or products that support their growth. Sometimes, companies must use voucher grants for specific purposes or schemes, such as government-backed projects like the Gigabit Broadband Voucher Scheme (GBVS).

How to find government grants in England, Scotland, and Wales

 There are plenty of government grants available to businesses across England, Scotland, and Wales.


Small and start-up businesses in the UK can search the relevant government website for grants available to them:


  • England – Business Finance Support Finder
  • Wales – Finance Locator
  • Scotland – Funding Opportunities

18 grants for small and start-up businesses in the UK

AD:VENTURE Business Growth Grant

Sectors: Small or Medium-sized Enterprises (SMEs) across various sectors

What you can get: grant funding between £1,500-10,000

The Business Growth Grant aims to support ambitious new businesses in West Yorkshire (Bradford, Calderdale, Kirklees, Wakefield, and Leeds).

Offered by AD:VENTURE, this grant aims to help companies that are under three years old, have less than 250 full-time employees, and an annual turnover of less than €50 million (around £43 million) with their growth initiatives.

The money can be used for tools and production equipment, website development and design, IT equipment and office furniture, and developing initial marketing collateral.

 Elmbridge Business Boost

Sectors: Independent retail businesses, business groups, trade associations, chambers of commerce, community organisations

What you can get: grant funding up to £2,000

The Elmbridge Business Boost grant aims to support local businesses and economic activity within the Elmbridge (Surrey) area.

These grants help businesses improve their physical presence and operational efficiency. The money can be used to enhance shop fronts, bring vacant shops back into use, and support town-wide projects that promote sustainability and community engagement.

Gigabit Broadband Voucher Scheme (GBVS)

Sectors: Small or Medium-sized Enterprises (SMEs) across various sectors

What you can get: up to £4,500 to cover the costs of installing gigabit-capable broadband in hard-to-reach areas.

This government-backed scheme is designed for small businesses based in rural locations that need to upgrade their IT infrastructure. It helps homes and businesses in areas without planned commercial broadband upgrades or government-funded projects to enhance connectivity.

If your business is based rurally and you’re struggling with sub-par broadband, there’s £210 million on offer to help. You can apply for a £4,500 broadband voucher to cover the cost of installing a gigabit-capable connection, which is likely to improve your business's smooth running.

Innovate UK Smart grants

Sectors: Small or Medium-sized Enterprises (SMEs) across various sectors

What you can get: a share of up to £25 million

This one’s a government funding competition that gives UK businesses the chance to bag a share of the programme’s £25 million prize pot.

Applications can come from businesses operating within any area of technology, but the focus is on innovative and game-changing concepts that will disrupt the status quo and ‘significantly’ impact the economy.

This competition runs each year with different opening and closing dates. Find out about the latest round of applications for Innovate UK Smart grants.

New Anglia Small Grants Scheme

Sectors: Small or Medium-sized Enterprises (SMEs) across various sectors

What you can get: grants from £2,500 to £25,000, covering up to 25% of total project costs

The Small Grant Scheme is an initiative by the New Anglia Local Enterprise Partnership aimed at fostering growth and increasing productivity among SMEs within Norwich City, North Norfolk District Council, and the Borough Council of King’s Lynn & West Norfolk.

This scheme offers financial aid for businesses to invest in new technologies, premises modifications, or training directly related to their growth projects. Priority is given to companies in the non-rural areas of King's Lynn & West Norfolk.

Seed Enterprise Investment Scheme (SEIS)

Sectors: Small or Medium-sized Enterprises (SMEs) across various sectors

What you can get: up to £250,000 in equity funding

SEIS is one of the more well-known schemes out there, designed to help start-up and early-stage businesses raise funds when they start out trading. It does this by offering tax relief to investors who purchase new shares in these companies.

Via SEIS, there’s the potential to secure up to £150,000 through investments, but there are multiple rules you must adhere to - failure to do so will result in the withdrawal or withholding of tax reliefs from your investors.

Social Entrepreneurs Awards

Sectors: Start-ups across various sectors

What you can get: up to £18,000, depending on the stage of your development

Whether you want to bloom a business idea from scratch or grow your existing business, the Social Entrepreneurs Awards could help with funding – provided your business solves a social issue or makes a social impact. This is defined as making a difference to people's lives, communities, or the planet.

If you’re committed to creating social impact in a financially sustainable way, you could be awarded up to £8,000 if you’re a start-up business or up to £18,000 if you’re looking to expand your business.

The Prince’s Trust Enterprise programme

Sectors: Entrepreneurs and small business start-ups across various sectors

What you can get: up to £30,000 in a combination of a Start-Up Grant of up to £5,000 and Start-Up Loan of between £500 and £25,000

The Prince’s Trust works with 18-30-year-olds to help them develop their own business.

The organisation runs a Start-Up Funding programme that offers eligible candidates up to £30,000 through a combination of a Start-Up Grant of up to £5,000 and a Start-Up Loan ranging from £500 to £25,000.

The Start-Up Grant is non-repayable financial support intended to help cover initial business costs before launching. The Start-Up Loan is a repayable financial aid, borrowed for a term of 1 to 5 years with interest, designed to support the growth of businesses less than 3 years old or those about to launch.

 As of January 19, 2025, businesses in Kent have access to several grant and funding opportunities designed to support growth, innovation, and sustainability. Here are some notable programs: 

Kent and Medway

Kent and Medway Business Fund (KMBF):

Dartford Low Carbon for Businesses Grant:

Kent and Medway Business Fund (KMBF):

5 Standard Loan: Offers 0% interest loans ranging from £100,000 to £600,000 for established small and medium-sized enterprises (SMEs) aiming to expand. A 50% match funding is required. 

Learn More

Kent and Medway Business Fund (KMBF):

Dartford Low Carbon for Businesses Grant:

Kent and Medway Business Fund (KMBF):

 Small Business Boost: Provides 0% interest loans between £26,000 and £99,000 for start-ups and early-stage SMEs. Applicants must provide 20% to 30% match funding. 


Learn More

Dartford Low Carbon for Businesses Grant:

Dartford Low Carbon for Businesses Grant:

Gravesham Tourism and Hospitality Businesses Grant:

 Grants up to £5,000 for SMEs in Dartford to implement energy-saving measures like LED lighting and insulation. 



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Gravesham Tourism and Hospitality Businesses Grant:

Gravesham Tourism and Hospitality Businesses Grant:

Gravesham Tourism and Hospitality Businesses Grant:

 Up to £1,000 for new and existing tourism and hospitality businesses in Gravesham to develop special offers and experiences. 



Learn More

Ashford Rural Grants

Gravesham Tourism and Hospitality Businesses Grant:

Sevenoaks WorkBoost Grant:

 Various grants ranging from £500 to £15,000 for SMEs in Ashford's rural areas, focusing on energy efficiency, business productivity, and tourism. Applications are open until January 31, 2025. 

Learn More

Sevenoaks WorkBoost Grant:

Gravesham Tourism and Hospitality Businesses Grant:

Sevenoaks WorkBoost Grant:

 Supports businesses in Sevenoaks District to take on new staff, providing financial assistance to facilitate employment. 



Learn More

Folkestone & Hythe Bespoke Skills Grant Scheme:

Folkestone & Hythe Bespoke Skills Grant Scheme:

Folkestone & Hythe Bespoke Skills Grant Scheme:

 Offers up to £5,000 for employers seeking to upskill employees in the retrofit, green, and construction sectors. 

Learn More

Rural Swale Small Business Grant Scheme:

Folkestone & Hythe Bespoke Skills Grant Scheme:

Folkestone & Hythe Bespoke Skills Grant Scheme:

 Grants between £1,000 and £7,000 to support small rural businesses in Swale with capital investments aimed at growth and carbon reduction. 

Learn More

Medway Partners for Green Growth Grant Scheme:

Folkestone & Hythe Bespoke Skills Grant Scheme:

Medway Partners for Green Growth Grant Scheme:

  Financial support up to £2,500 for Medway SMEs to implement decarbonisation plans and adopt sustainable processes. 

Learn More

LoCASE (Low Carbon Across the South and East):

UK Shared Prosperity Fund (UKSPF) and Rural Economy Prosperity Fund (REPF):

Medway Partners for Green Growth Grant Scheme:

 Provides grants between £1,000 and £10,000, funding up to 40% of projects aimed at carbon reduction and sustainability for businesses across Kent. 




Learn More

Start Up Loan:

UK Shared Prosperity Fund (UKSPF) and Rural Economy Prosperity Fund (REPF):

UK Shared Prosperity Fund (UKSPF) and Rural Economy Prosperity Fund (REPF):

 Offers low-interest loans up to £25,000 at a 6% fixed interest rate for pre-start and early-stage businesses 






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UK Shared Prosperity Fund (UKSPF) and Rural Economy Prosperity Fund (REPF):

UK Shared Prosperity Fund (UKSPF) and Rural Economy Prosperity Fund (REPF):

UK Shared Prosperity Fund (UKSPF) and Rural Economy Prosperity Fund (REPF):

 Various local authorities in Kent offer grant schemes funded by UKSPF and REPF to support business growth and sustainability. For instance, the West Kent Business Grant Scheme assists businesses in reducing their carbon footprint and supporting growth initiatives. 

Learn More

 For comprehensive information and assistance in identifying suitable funding options, businesses can consult the Kent and Medway Growth Hub. This fully funded service helps new and existing businesses find the most appropriate support available in their area. 

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Registered Office:  The Cobalt Building, 1600 Eureka Park, Lower Pemberton, Ashford, Kent TN25 4BF. 

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