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.
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.
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:
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:
In need of some funding for your small business? These grants should give you a boost wherever you're based in the UK.
he Growth Guarantee Scheme is the successor to the Recovery Loan Scheme.
It is designed to support access to finance for UK smaller businesses as they look to invest and grow. The Growth Guarantee Scheme launched with accredited lenders on 1 July 2024, with a wide range of products supported by different lenders, including term loans, overdrafts, asset finance, invoice finance and asset-based lending.
The Growth Guarantee Scheme can generally support facility sizes of up to £2m and provides the lender with a 70% government-backed guarantee.
It can support facility sizes of up to £2m for borrowers outside the scope of the Northern Ireland Protocol Read footnote text1 . Borrowers in scope of the Northern Ireland Protocol may borrow up to £1 million (or such other sum as may be notified from time to time by us to the lender in accordance with the relevant legal document(s)), unless they operate in a sector where aid limits are reduced – in which case the maximum that can be borrowed is subject to a lower cap. These include agriculture and fisheries / aquaculture.
Businesses can use the finance for any legitimate business purpose – including managing cashflow and investment. However, businesses must be able to afford to take out additional debt finance for these purposes.
A pilot is currently being run to enhance the Growth Guarantee Scheme’s ability to support businesses that are investing in sustainable assets (Green GGS).
The British Business Bank administers the scheme on behalf of the Secretary of State for Business and Trade.
Apply for capital items to benefit boundaries, trees and orchards, water and air priorities, assessments, improvements and natural flood management.
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.
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.
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.
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:
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.
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.
Grants up to £5,000 for SMEs in Dartford to implement energy-saving measures like LED lighting and insulation.
Up to £1,000 for new and existing tourism and hospitality businesses in Gravesham to develop special offers and experiences.
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.
Supports businesses in Sevenoaks District to take on new staff, providing financial assistance to facilitate employment.
Offers up to £5,000 for employers seeking to upskill employees in the retrofit, green, and construction sectors.
Grants between £1,000 and £7,000 to support small rural businesses in Swale with capital investments aimed at growth and carbon reduction.
Financial support up to £2,500 for Medway SMEs to implement decarbonisation plans and adopt sustainable processes.
Provides grants between £1,000 and £10,000, funding up to 40% of projects aimed at carbon reduction and sustainability for businesses across Kent.
Offers low-interest loans up to £25,000 at a 6% fixed interest rate for pre-start and early-stage businesses
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.
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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