1. What Are Small Business Grants?
Small business grants are non-repayable funds provided by the government, local councils, or private organizations. Unlike loans, you don’t need to pay them back. Grants help cover costs like:
- Equipment or machinery
- Premises improvement
- Research and development
- Staff training
- Digital upgrades
2. Innovate UK Smart Grants
Ideal for businesses developing breakthrough technologies. Features include:
- Grants starting from £25,000
- Covers up to 70% of project costs
- Available for feasibility studies, prototyping, or market validation
Targeted at science, tech, or innovation-driven businesses.
3. The Prince’s Trust Grants (18–30-year-olds)
Supports young entrepreneurs with:
- Start up grants
- Business mentoring
- Low-interest loans up to £25,000
Perfect for new business owners facing barriers to entry.
4. Local Authority Small Business Grants
Many councils offer area-specific grants to boost the local economy. Common uses include:
- Storefront improvements
- Sustainable energy installations
- Business development projects
Amounts vary, and criteria differ by region. Check with your local council.
5. Growth Hub and LEP Funding
Local Enterprise Partnerships (LEPs) and Growth Hubs offer:
- Business advice
- Training subsidies
- Direct or match-funded grants
Support is often focused on job creation, innovation, and digital expansion.
6. Digital Growth Grant
Funded by the UK government to improve digital skills and infrastructure:
- Grants for software tools and hardware
- Digital marketing training
- E-commerce support
Great for retail, services, or startups shifting online.
7. Apprenticeship Grants
Employers hiring apprentices under government-backed programs may receive:
- Up to £1,000 per apprentice
- Additional training and support funding
Helps reduce hiring and upskilling costs.
8. Business Energy Efficiency Grants
Offered to small businesses looking to reduce energy costs and carbon footprint:
- Lighting upgrades
- Heating systems
- Building insulation
Eligible businesses may receive partial or full coverage of upgrade costs.
9. Female Founder or Minority Business Grants
Some private and charitable organizations offer grants to:
- Female entrepreneurs
- BAME business owners
- Social impact-led businesses
Eligibility and funding amounts vary but are designed to promote inclusion.
10. Innovation and Export Grants
Targeted at small businesses expanding internationally or innovating:
- UK Export Finance support
- Innovate UK EDGE advisory grants
- Trade show and market research support
Helpful for businesses scaling into global markets.
Frequently Asked Questions
1. Are small business grants taxable?
Generally, yes. Grant income must be reported, though some costs covered may be deductible.
2. Do I need to repay a grant?
No. Grants are non-repayable as long as you follow the terms and reporting requirements.
3. Can I apply for more than one grant?
Yes, as long as the grants are for different purposes or projects.
4. What do I need to apply for a grant?
Most applications require a business plan, financial projections, and explanation of how the funds will be used.
5. Where can I find grants for my small business?
Start with GOV.UK, your local council, Growth Hubs, and sector-specific business associations.
6. How long does it take to get a grant?
Some grants are processed within weeks, while others (especially competitive ones) can take months.
Conclusion
Grants for small business in the UK provide an essential boost for entrepreneurs and startups looking to innovate, expand, or simply get off the ground. With multiple local and national opportunities available in 2025, the right funding could be just a smart application away. Start your research, prepare a solid plan, and seize the support that fits your business.