1. What Are New Small Business Grants?
New small business grants are non-repayable funds offered by the UK government, local councils, charities, and private organisations to help startups and small businesses grow. They can be used for equipment, marketing, training, or research.
2. Benefits of Small Business Grants
- No Repayment: Unlike loans, grants don’t need to be paid back.
- Encourages Growth: Funds expansion, hiring, or product development.
- Boosts Credibility: Winning a grant can attract investors.
- Supports Innovation: Many grants focus on technology, sustainability, or new products.
3. Types of New Small Business Grants in the UK
- Government Grants – National funding for economic growth and innovation.
- Local Authority Grants – Regional schemes supporting local businesses.
- Sector-Specific Grants – For industries like manufacturing, arts, and green energy.
- Export and Trade Grants – Help small businesses reach international markets.
- Employment Grants – Support for hiring and training staff.
4. Examples of New Small Business Grants in 2025
- Innovate UK Smart Grants – For research and development projects.
- Local Enterprise Partnership (LEP) Funding – Regional business support.
- Arts Council England Grants – For creative projects.
- Net Zero Grants – For eco-friendly initiatives.
- Prince’s Trust Enterprise Programme – For entrepreneurs aged 18–30.
5. Eligibility Criteria
While each grant has its own rules, you’ll usually need to:
- Be a registered UK business or in the process of registering.
- Operate in an eligible sector.
- Provide a detailed business plan.
- Show how the funding will be used.
6. How to Apply for a New Small Business Grant
- Research Funding Options – Look for grants that match your business goals.
- Check Eligibility – Avoid applying for grants you can’t qualify for.
- Prepare Your Business Plan – Include market research, budgets, and forecasts.
- Complete the Application – Provide clear, concise answers.
- Submit Supporting Documents – Proof of ID, financial records, and proposals.
- Follow Up – Respond quickly to any queries from the grant provider.
7. Tips to Improve Your Chances
- Apply early before funding runs out.
- Show measurable benefits to your community or industry.
- Be realistic with budgets and timelines.
- Use data to back up your application.
8. Alternatives if You Can’t Get a Grant
- Government Start Up Loans – Low-interest funding with mentoring.
- Crowdfunding – Platforms like Kickstarter or Crowdcube.
- Angel Investors – Equity-based investment for growth.
- Small Business Loans – From banks or alternative lenders.
Frequently Asked Questions
Q1: Are small business grants taxable?
Some may be taxable—check with HMRC.
Q2: Can I apply for multiple grants?
Yes, as long as funding rules don’t conflict.
Q3: How long does it take to get a grant?
It can take weeks or months depending on the scheme.
Q4: Can I get a grant before registering my business?
Some allow pre-start applications, but most require a registered business.
Q5: Do I need to repay a small business grant?
No, unless you fail to meet the grant’s terms.
Q6: Can grants cover staff wages?
Some employment grants can, but most fund specific projects or purchases.
Conclusion
New small business grants in 2025 offer a valuable way to secure funding without taking on debt. By researching the right schemes, preparing a strong application, and demonstrating clear benefits, you can increase your chances of securing grant funding to grow your business.