Small business grants in the UK

A small business grant is a financial award given to a business by the government, a local authority, or a charity. Grants are typically designed to boost the job market and local economy and can be used to fund various aspects of your business. 

You do not have to pay this money back. This means that grants provide funding without adding debt, making them an attractive option for entrepreneurs looking to grow or establish their companies. 

There are pros and cons to small business grants. 

Pros of small business grants: 

• No repayment is required, unlike loans 
• Can help fund growth or startup costs 
• Often come with business support and mentoring 
• Can help validate your business idea to investors 
• Can reduce financial risk when starting or growing 

Cons of small business grants: 

• Highly competitive applications can be time-consuming 
• Strict eligibility criteria 
• Limited availability and amount received 
• May require reporting and compliance 
• Potentially low success rates

There are various categories of grants available to UK businesses, targeting different needs and circumstances:

• Startup grants – for new businesses in their early stages, often requiring detailed plans and projections. 
• Regional grants – for businesses in specific areas to encourage local development and job creation. 
• Innovation grants – for those developing new products, services, and technologies, particularly in emerging sectors like renewable energy or artificial intelligence. 
• Sector-specific grants – for particular industries such as manufacturing, technology, or construction. 
• Skills and training grants – for businesses looking to upskill employees or develop their workforce. 
• Export grants – for those looking to expand into international markets. 
• Rural grants – for businesses operating in rural or remote areas. 
• Social enterprise grants – for businesses with a social or environmental mission.

There are various grants to explore, each targeting different business types, sizes, and purposes. Some examples include: 

Please note that this list may not be exhaustive and is current as of August 2026.

There are various sources for finding and applying for small business grants, including: 

• GOV.UK Find Government Grants (external link) – the government’s official portal for grants and funding opportunities. 
• Innovate UK (external link) – a government agency focused on research and innovation funding. 
• Local councils and authorities – can offer grants for local and specific support. 
• Trade organisations – can offer information and advice on funding.¹ (external link) 

There are also various independent organisations that offer grants. In some cases, funding can be won through competitions. 

Visit GOV.UK business finance support (external link) for information about grants and funding, and to find the relevant places to start your application.

Eligibility requirements vary significantly depending on which grant you want to apply for, but common criteria include: 

• Business registration – must be a registered UK business 
• Geographic location – some grants are for local regions, cities, or rural areas 
• Business size – many grants target small and medium enterprises (SMEs) 
• Industry sector – certain grants are specific to industries or business types 
• Financial need – many grants must be deemed necessary for business growth or survival 

Some grants require a comprehensive business plan and detailed financial projections, while others may need evidence of social impact and environmental benefits. It can be important to check the eligibility criteria carefully before applying.

You will need to apply for a small business grant directly through the institution providing the funding – for example, the government or your local authority. 

You will typically need a: 

• Business plan – who are you and what does your business do? 
• Funding proposal – what will you use the money for, and how will it help your business grow? 
• Cashflow forecast – what do your finances look like, and how will the grant affect them?

While non-repayable grants can be attractive, they’re not the only funding available. Many businesses choose alternative routes, such as: 

• Business bank loans 
• Government-backed loan schemes 
• Peer-to-peer lending platforms 
• Crowdfunding campaigns 
• Angel investors 
• Venture capital 

Each funding type has its own advantages, disadvantages, costs, and requirements. However, it’s important to consider your risk tolerance when choosing alternative funding. In many cases, you will need to repay what you borrowed with interest. 

If in doubt, seek professional financial advice to find out whether these options are right for you.