1. What Are Start Up Business Grants?
A start up business grant is non-repayable funding provided by government bodies, charities, or private organisations to help new businesses launch or grow. Unlike loans, grants do not need to be repaid, making them a highly attractive source of funding.
2. Benefits of Grants for Start Up Businesses
- No repayment – You keep 100% of the funds.
- Encourages growth without adding debt.
- Support for innovation and job creation.
- May include training and mentorship alongside funding.
3. Popular Grants for Start Up Businesses in the UK
a. Innovate UK Grants
- For innovative projects across various industries.
- Focused on research and development.
b. Prince’s Trust Enterprise Programme
- For entrepreneurs aged 18–30.
- Includes grants, mentoring, and training.
c. Local Enterprise Partnership (LEP) Grants
- Regional grants aimed at boosting local economies.
- Support varies depending on location.
d. New Enterprise Allowance (NEA)
- For unemployed individuals starting a business.
- Offers a weekly allowance and possible funding support.
e. Start Up Loans Company (Loan + Support)
- Although technically a loan, it’s government-backed with mentoring.
- Low interest rate of 6% APR.
f. Arts Council England Grants
- For creative industry start ups in art, music, theatre, and design.
4. How to Find Local Start Up Business Grants
- Contact your Local Enterprise Partnership (LEP).
- Check your local council’s business support page.
- Use the UK Government’s business finance and support search tool.
5. How to Apply for a Start Up Business Grant
- Research relevant grants for your sector and location.
- Check eligibility criteria carefully.
- Prepare a strong business plan and financial forecast.
- Gather required documents (ID, proof of address, bank statements, etc.).
- Submit your application before the deadline.
- Follow up if additional information is requested.
6. Tips for Securing a Start Up Grant
- Clearly explain how your business will benefit the community or industry.
- Show measurable results in your proposal.
- Apply early to avoid missing deadlines.
- Keep copies of all submitted documents.
Frequently Asked Questions
Q1: Are grants for start up businesses UK-wide or regional?
Both – some are nationwide, others are only available in certain regions.
Q2: Do I have to pay tax on a grant?
Yes, most grants count as business income and are taxable.
Q3: Can I apply for multiple grants?
Yes, as long as the funding purposes don’t overlap.
Q4: Are grants easier to get than loans?
Not necessarily – they are competitive and require strong applications.
Q5: How long does it take to receive grant funding?
It varies – some can take weeks, others several months.
Q6: Can I get a grant if I already started trading?
Yes, some grants are for early-stage businesses, not just pre-launch.
Conclusion
Grants for start up businesses in the UK offer valuable financial support without the burden of repayment. By researching available opportunities, meeting eligibility criteria, and submitting a strong application, entrepreneurs can secure funding to bring their business ideas to life.