Start-up and small business grants in the UK: Updated for 2024
Start-up and small business grants in the UK: Updated for 2024
25 June 2024 | Published by Jodie Wilkinson
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.
What is a business grant?
A business grant is essentially is 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
Small business grants
1. 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.
3. 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.
5. 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.
6. 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.
7. 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.
8. 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.
Business energy and transport grants
1. Birmingham Commercial Vehicle Grant
What you can get: up to £180,000 per applicant
£10.05 million has been set aside to help SMEs in the West Midlands comply with Birmingham’s Clean Air Zone emission standards.
Businesses that have been trading for 12 months or more and who own or lease a light or heavy goods vehicle not compliant with Clean Air Zone (CAZ) emission standards can apply for funds to help them upgrade their fleet.
Each business can receive up to £180,000: £15,000 per heavy goods vehicle and up to 35% of the cost of an upgrade, up to a maximum grant amount of £4,000 per vehicle towards purchase.
The funding supports upgrading or replacing non-compliant Heavy Goods Vehicles (HGVs), coaches, and vans to vehicles that meet the required emission standards.
2. Energy Efficiency Grants for East Sussex Businesses
What you can get: grants ranging from £200 to £1,000, covering up to 40% of the total project costs for energy efficiency improvements.
The East Sussex County Council funds energy efficiency grants to support SMEs in East Sussex in reducing their energy consumption and costs.
Through the Sustainable Business Partnership CIC, businesses can apply for a grant between £200 and £1,000 to cover a maximum of 40% of the total value of their energy efficiency project.
3. Energy Efficiency Grant for Greater Manchester
What you can get: up to £5,000 (before VAT) towards energy efficiency improvements.
The Energy Efficiency Grant is designed to support SMEs in Greater Manchester in implementing energy efficiency improvements. This grant aims to reduce energy consumption and carbon emissions by financially assisting businesses in upgrading their equipment and processes.
The grants are available on a first-come-first-served basis and can be used on projects like:
upgrading heating equipment (such as heat pumps)
replacing motors, drives, compressors
upgrading refrigeration equipment
4. Net Zero Worcestershire grants
What you can get: grants up to £10,000 for businesses to implement energy saving initiates
Small businesses in Worcestershire are eligible to apply for grant funding to introduce energy-efficient initiatives that will help them contribute to a more sustainable and low-carbon future.
The amount businesses can receive depends on their area. They will also be expected to partially fund at least 60% of the project's total cost.
5. Plug-in grant for low-emission vehicles
What you can get: a discount on the purchase price of new low-emission vehicles
The UK Government offers a plug-in grant to encourage the purchase of low-emission vehicles, with the overall goal of reducing greenhouse gas emissions and promoting sustainable transportation. This grant applies to eligible cars, vans, motorcycles, mopeds, and taxis that meet specific low-emission criteria.
Small businesses don’t have to apply for this; it’s automatically included as a discount by the vehicle seller when the vehicle is sold.
Small business grants in Scotland
Sectors: Small and Medium Enterprises (SMEs) across various sectors in Scotland
What you can get: debt or loan finance up to £250,000 and equity finance up to £2 million
The Scottish Growth Scheme is a substantial financial support initiative backed by the Scottish Government. It offers up to £500 million to foster business growth within Scotland. This scheme is tailored to support SMEs through multiple financial avenues, including loans and equity financing. It bolsters businesses by providing the necessary capital for expansion and innovation.
2. Scottish Venture Capital Fund
Sectors: High-growth potential, early-stage companies
What you can get: equity funding ranging from £100,000 to £2 million to develop innovative products, services, or markets
The Scottish Venture Capital Fund, managed by Scottish Enterprise, is designed to support high-growth potential early-stage businesses, including start-ups. This fund primarily acts as a flexible equity gap funder, investing alongside private sector investors to fill funding gaps within investment rounds. The fund can cover up to 50% of the total funding package on a commercial basis, with total deal sizes typically ranging from £200,000 to £10 million.
Small business grants in Wales
1. Caerphilly Business Start-up Grant
Sectors: All business sectors
What you can get: up to 50% of eligible project costs, with a maximum grant of £500
The Caerphilly Business Start-up Grant is available to residents of Caerphilly County Borough to help them establish a full-time business for the first time. It provides financial aid to those who are unable to access other funding sources.
The business must be a start-up located within the Caerphilly County Borough, and the applicant must set up the business as their full-time employment.
Sectors: Various sectors eligible
What you can get: grants ranging from £2,500 to £10,000, covering up to 50% of total project spend (excluding VAT).
The Cardiff Growth Fund, part of the new Shared Prosperity Fund (SPF), supports Cardiff-based companies in their efforts to relaunch, develop, and expand. It aims to support the local economy while promoting a fairer, greener, and more prosperous future for businesses within Cardiff.
Applicants must be limited companies or charities with less than 250 employees and a business track record of over three years.
3. Swansea Business Growth Grant
Sectors: Various sectors eligible; focused on businesses introducing new products or services
What you can get: grants up to £50,000, calculated based on an upper limit of £5,000 per job created and/or safeguarded
The Swansea Business Growth Grant helps businesses expand by introducing innovative products or services. It’s funded by the UK Government through the UK Shared Prosperity Fund and offers grants to allow investments in essential business operations like purchasing new equipment, IT systems, and machinery.
The maximum grant available is £50,000, with funding determined by the number of jobs created or safeguarded linked directly to the new product or service. Applicants must demonstrate this direct link and provide a comprehensive business plan or summary and a 12-month cash flow forecast.
Alternative financial help for small businesses
With over 5.6 million small businesses in the UK each working hard to succeed, securing a highly-prized grant can be extremely difficult.
If you’re looking for other options that can help boost your business’s growth and stability, here are some alternatives:
Apprenticeships
Bringing on an apprentice can offer heaps of business benefits, like upskilling your workforce and growing your business steadily. The government will also provide funding and financial help.
There are incentive payments up for grabs of up to £1,000, plus if your business qualifies, you’ll get 95% of training costs, up to the maximum funding amount, covered too.
You can find out more with our guide to taking on an apprentice here.
Visit the relevant government portal to learn more about employing an apprentice in:
Loans
If you’re a small or start-up business that can’t meet the criteria or wait for grant approvals, loans tend to be a more accessible option. Business loans can usually be secured from banks, credit unions, and private lenders, offering financial aid tailored to a business’s needs.
Business loans can offer more flexibility than grants, too, as the money can be used for whatever a business needs it for—as opposed to the stricter requirements and guidelines that are outlined in many grants. This flexibility allows business owners to allocate funds according to their most pressing needs, which is particularly valuable for start-ups and small businesses facing unexpected costs.
Here at takepayments, our Advance+ service is a simple way to give your business a cash injection that you can repay with a small fixed percentage of your earnings. This takes the pressure off of large repayment sums, as you’ll slowly chip away at your outstanding balance with each payment your customers make. Learn more about Advance+ here.
Tax relief
The majority of businesses will have to pay business rates on non-domestic properties, which can be a significant financial strain for many SMEs. Managing business rates is crucial as they can significantly impact cash flow, but tax relief options are available to help alleviate the pressure.
Small Business Rate Relief (SBRR) provides eligible organisations with a significant reduction or complete exemption from business rates.
If your business property’s rateable value is less than £15,000 and your business only uses one property, you can be eligible for small business rate relief.
How do I apply for a small business grant?
Most government-run business grants can be applied for via the gov.uk website on the respective grant webpage.
The application process for non-government-run grants may vary, and the criteria will often be different, as many are specific to a sector or location.
To give you the best chance of successfully securing funding, here are our top tips for applying for a small business or start-up grant:
1. Read the grant objectives and criteria
Businesses should thoroughly read the grant information and take the time to understand what’s on offer. Many grants have specific aims or regulations for who can apply — like hiring from a local area or supporting a particular industry — which is vital to know early on. After all, you don’t want to waste time researching and applying for a grant you’re not eligible for.
Having a clear understanding of what the grant wants to achieve means that you can find one that’s as closely aligned with your business objectives as possible.
2. Enquire with the grant provider for more information
Having a solid understanding of the ins and outs of a grant can help you strengthen your application. Still, all the information you want might not be readily available, so consider contacting the grant provider with questions or anything you want to learn more about.
Not only will this give you a better idea of the grant, but starting to build a relationship with the provider can also help your chances when you apply, as it shows that you’re actively interested.
3. Create a business plan
Some grant providers may expect applicants to provide a professional business plan; if not, including one as an extra part of your application can help increase your chances of securing funding.
If you’re a start-up business, presenting your long-term goals will show that you’re invested in getting your business off the ground. On the other hand, if you’re an SME looking to expand, providers may be interested in seeing examples of your trading history and current business status to help them decide who to give funding to.
4. Plan what you want to do with the grant funding
When creating your business plan, it would also be beneficial to include how you’ll use the grant funding if you successfully secure it. This forward planning shows providers how you’ll be planning to grow or start your business.
For grants aimed at specific sectors or projects, aligning how you plan to spend your funding with the grant's key goals can also help boost your chances of success.
5. Evaluate your current funds
Depending on the grant, some may provide a set amount, and others will offer to match the amount you’re willing to invest. For the latter, you should double-check your business’s current funds to know that you can match the amount you’re requesting.
6. Apply early
Applying as early as possible is the best way to improve your chances of getting funding. Ideally, you should apply once the grant or scheme first opens, as you’ll have higher odds of your application being received.
Some grants may stop accepting applications if they receive too many, and others may split out the funding to different businesses instead of all going to one recipient. In this case, there could be more funding at the start before it has been given out.
Grow your business with takepayments
Payments is what we do, whether it’s card machines or online transactions, but there are other ways we can help your business grow.
Our business funding gives merchants a fast and flexible way to get a quick cash boost to help them hit their goals. Contact us today to learn more.
