1. Can You Get a Grant to Start a Business?
Yes — in the UK, there are several grants available to help you start a business. These are usually offered by government bodies, local councils, charities, and private organisations. The main attraction is that grants don’t need to be repaid, making them one of the most desirable funding sources for new entrepreneurs.
2. Who Can Get a Grant to Start a Business?
Grant availability depends on your location, industry, and circumstances. Common eligibility factors include:
- You are based in the UK.
- You have a viable business idea with a clear plan.
- Your business operates in an eligible sector.
- You meet specific criteria (e.g., age, location, environmental focus).
3. Popular Grants for New Businesses in 2025
- Prince’s Trust Enterprise Programme – For entrepreneurs aged 18–30.
- Innovate UK Smart Grants – For innovative products and services.
- Local Enterprise Partnership (LEP) Grants – Regional funding options.
- Arts Council England – For creative industry projects.
- Net Zero Grants – For environmentally sustainable startups.
4. How to Apply for a Business Grant
- Research Relevant Grants – Focus on schemes that match your business type.
- Check Eligibility – Avoid wasting time on ineligible applications.
- Create a Detailed Business Plan – Highlight your idea, market research, and financial forecasts.
- Complete the Application – Provide clear, concise, and honest answers.
- Submit Supporting Documents – Proof of ID, address, and any financial details.
- Follow Up – Respond quickly to any questions from the grant provider.
5. Tips to Improve Your Chances of Approval
- Show how your business benefits the community or economy.
- Use clear evidence, such as market research data.
- Apply early before funding runs out.
- Keep your application professional and error-free.
6. If You Can’t Get a Grant
If you don’t qualify for a grant, you might still get funding through:
- Government Start Up Loans – Up to £25,000 per founder.
- Crowdfunding – Kickstarter, GoFundMe, or Crowdcube.
- Angel Investors – Equity-based investment.
- Small Business Loans – From banks or alternative lenders.
Frequently Asked Questions
Q1: Do I have to pay back a business grant?
No, unless you fail to meet the grant terms.
Q2: Can I get a grant before registering my business?
Some schemes allow pre-start applications, but most require registration.
Q3: Are business grants taxable?
Some may be, so check with HMRC.
Q4: How long does it take to get a grant?
Processing can take weeks to months.
Q5: Can I apply for more than one grant?
Yes, provided there’s no conflict between schemes.
Q6: Can grants cover startup salaries?
Some do, but most focus on equipment, marketing, or project costs.
Conclusion
If you’re wondering “Can I get a grant to start a business?”, the answer is yes — but success depends on finding the right scheme, meeting the eligibility criteria, and submitting a strong application. Grants are competitive, so preparation is key to securing this valuable, non-repayable funding.