1. Start Up Grant (Local Authority Schemes)
Many councils offer grants specifically for new businesses. These grants support:
- Equipment purchases
- Business setup costs
- Premises improvements
Amounts range from £500 to £5,000. Eligibility and availability vary by region, so check your local council’s business support hub.
2. The Prince’s Trust Enterprise Programme
For young entrepreneurs aged 18–30, this programme offers:
- Business training and mentorship
- Grants to support startup expenses
- Optional low-interest loans
Perfect for first-time founders needing both funding and guidance.
3. New Enterprise Allowance (NEA)
If you’re unemployed and want to start a business, NEA provides:
- Mentoring support
- A weekly allowance for up to 26 weeks
- Potential access to funding or Start Up Loans
It’s a great stepping stone from benefits into business ownership.
4. UK Shared Prosperity Fund
This government fund supports local economic growth, including:
- Startup grants for new businesses
- Training and digital upgrades
- Innovation and sustainability projects
Delivered via councils and Local Enterprise Partnerships (LEPs).
5. British Business Bank Start Up Loans
While technically loans, this scheme is government-backed and often paired with:
- Free mentoring
- Business plan support
- Training and resources
Loans are up to £25,000 per person with fixed 6% interest.
6. Innovate UK Smart Grants
For new businesses working on innovative products or services:
- Grants up to £1 million (competitive)
- Focus on research, development, and market testing
- Open to tech, science, and creative startups
These grants are ideal for businesses in growth sectors.
7. Local Growth Hubs and LEP Grants
Across the UK, Local Growth Hubs and LEPs offer:
- Funding for digital adoption
- Support for job creation and training
- Grants to help new businesses get established
Each area offers unique grants and programs based on local needs.
8. Female Startup Grants
Charities and private schemes support women-led startups through:
- Microgrants for startup essentials
- Business support and mentorship
- Networking opportunities
Check local enterprise hubs and national organisations like Women in Business.
9. Social Enterprise Grants
If your business addresses a social or environmental need, you may qualify for:
- Grants from social investment funds
- Big Lottery Fund or Social Enterprise UK
- Blended funding (part grant, part repayable)
Ideal for new businesses that put purpose before profit.
10. Business Competition Grants
New entrepreneurs can apply for pitch competitions with cash prizes:
- Regional startup challenges
- University-led enterprise grants
- National contests like the Great British Entrepreneur Awards
Besides funding, winners often gain press, mentorship, and investor access.
Frequently Asked Questions
1. Can I get a grant for starting a new business?
Yes. The UK offers various grant schemes depending on your location, sector, and situation.
2. Are startup grants taxable?
Yes, usually. Grant income must be reported, though you may offset costs against it.
3. Do I need to pay back a startup grant?
No. Grants are not repayable, but they must be used according to the agreed terms.
4. How can I improve my chances of getting a grant?
Have a strong business plan, be specific about how you’ll use the funds, and apply early.
5. Can I apply for multiple grants?
Yes. You can apply for more than one, but each must fund a different activity or purpose.
6. Where do I find grants for a new business?
Start with GOV.UK, your local council, business support hubs, and sector-specific programmes.
Conclusion
Getting a grant for a new business in the UK is possible with the right research and preparation. Whether you’re launching a tech startup, a social enterprise, or a retail venture, 2025 offers more funding opportunities than ever. Explore your local area, prepare a strong pitch, and tap into the free support available to make your entrepreneurial vision a reality.