What small business grants are available?

Running a small business – especially in its early years – is often very challenging.  In an ideal world companies would want to finance growth out of revenue but in reality extra financing is often needed. While loans and investors can provide this, companies should also consider the range of grants available. 

There are many providers out there that can help push a company through to the next stage of its growth and – best of all – the grants are interest-free and do not need to be repaid. Of course they come with strings attached and are usually linked to a specific government policy objective but for many businesses they can be a lifeline so any SME owner should take the time to find out what is available.

Major grant providers

The Gov.uk website lists more than 80 types of grant available to private sector companies. Normally they are open to businesses and eligible organisations in any of the four nations of the UK. Usually some degree of match funding is required.

A number of the grants are linked to net zero objectives, for example, grants for introducing workplace electric vehicle (EV) charging, encouraging a switch to hybrid or electric work vehicles, decarbonising concrete structures and developing battery technology.

Innovate UK

This fund, which is part of UK Research and Innovation, has £25 million to offer in Smart grants. These are meant for innovations that can be brought to market quickly and can be in any area of technology and any area of the economy.

UK Research and Innovation

Grants of between£25,000 and £10 million are available to support research and development(R&D). They are usually for projects with a known end date and will not cover the whole cost of them. 

UKRI runs regular funding competitions with the aim of supporting development of innovative products, services or processes that have commercial potential. Usually these are in the areas of science, medicine, technology or the environment. Other of its funding competitions are aimed at projects that support societal challenges. Professional help may be useful inputting together an application as the process requires UKRI’s guidance to be followed exactly. 

UK Shared Prosperity Fund

The fund was set up with £2.6 billion of central government money and is part of the levelling up agenda. The fund relies on a funding formula rather than competition to handout allocations. Funding is confirmed up until the end of the 2024-25 financial year.

Local authorities are expected to work with various other bodies, including businesses, to achieve the objectives of the fund. Although funds can be given directly to businesses, normally funds will be disbursed to a local authority on submission of an investment plan, which must be developed with local stakeholders.   

International grant providers

Despite the UK having left the EU there is still some European money available to British businesses.

Eureka Eurostars Scheme

The programme funds international R&D and innovation projects, whether products or services, that have commercial potential. UK-based organisations can be eligible, whether they are start-ups or large companies. Grant funding is directed at products, services and processes that are near to fruition and that involve international collaboration across the EU. British SMEs can apply for up to €360,000 of funding, which may not be the entire cost of the project.

Eurostars is a major international funder of smaller companies that want to collaborate cross-border on R&D projects. Universities and research centres can also participate.

Network

This scheme will fund specific projects aimed at developing a non-military product, process or service. They must be genuine collaborations and the average project cost is €1.34 million (£1.15 million). The programme funds international R&D and innovation projects. UK-based organisations are eligible for some of the grants despite being out of the EU.

Specific central government grants 

These are usually aimed at achieving policy objectives, such as reducing CO2 emissions or improving opportunities.

Apprentices

The government wants to encourage companies to take on apprentices and offers £1,000 to support an apprentice in the workplace, who must be 16-18 years old, 19-25 with an education, health and care plan or 19-25 and formerly in care.

For companies that do not pay the apprentice levy, the government will pay a training provider 95% of the cost of training an apprentice, with the business paying the remaining 5%.Companies that do pay the levy will get a 10% top-up on what they spend on training and assessing apprentices.

Arts Council National Lottery project grants

Between £1,000 and£100,000 is available for arts and culture projects and libraries. The success rate for submissions is 10% to 20%. Individuals, artists and community and cultural organisations are eligible to apply.

Community Fund

This is one of the initiatives supported with National Lottery money. Most funds have a cap of £20,000 and are available only to voluntary or community organisations.

Electric vehicle charge points and infrastructure

Sums starting at £350 are available to landlords of leasehold and rental properties to install charging points for EVs and associated infrastructure.

Similarly, SMEs can get grants between £350 and £30,000 for EV installations and there is also the Workplace Charging Scheme, which offers up to £350 for each of a maximum of 40 sockets per applicant.

The Department of Transport’s Plug-in Van and Truck Grant offers between £2,500 and £25,000 to help with the cost of buying ultra-low emissions vans and HGVs.

Gigabit Broadband Voucher Scheme

The initiative is part of the government’s Project Gigabit, which helps hard to reach areas get high speed broadband. Eligible homes and businesses can get up to £4,500 to help with upgrading. 

Other grant schemes

This covers grant-awarding bodies that are not central government funded. 

Crack It Challenges

The NC3Rs organisation runs challenges and competitions to develop technologies to reduce the use of animals in medical and scientific research. Smaller companies and academics can apply for funding and research contracts.

Prince’s Trust Enterprise Programme

This is aimed at young people who want to start a business or get on a training course. The trust can make grants of up to £500 to UK residents aged between 16 and 30 who are working less than 16 hours a week, are unemployed or not in full-time education.

Queen Mary University of London

Queen Mary University of London offers a range of awards of up to £10,000 to newly formed businesses, social enterprises and the self-employed to expand their companies. Applicants need to be students or recent graduates of the university. Schemes include Grow It, Try It and Build It.

UnLtd

This London-based charity offers funding and support to social entrepreneurs and social ventures. Up to £18,000 is available for each project, with a cap of £8,000 if the start-up has not launched.  

At present it is focusing support on organisations supporting healthy ageing and access to employment. UnLtd will invest in early stage organisations if they are trying to improve their diversity, increase revenues and reduce inequity.

UnLtd has offices in Birmingham and Bradford as well as Islington, and offers mentoring and free support. 

Greater London Authority

As of March 2024, the GLA does not have any open business grant schemes but it does offer Grow London Local, which matches small businesses with local business support managers for consultations and advice on what funding and support might be available. Other support services are available.

GLA-supported programmes are aimed at helping businesses help themselves rather than giving them direct funding, and it can help companies connect with investment partners that can be a source of non-grant finance.

For example, the Investment Ready Programme is a free, six-week programme that helps pre-seed and seed businesses in London to raise capital. Businesses must have a minimum viable product, that is, a product that is sellable but needs more development. It is particularly interested in supporting ethnic minority entrepreneurs. The programme is supported by the UK Shared Prosperity Fund and the Mayor of London.

‍Local authorities and councils

This article focuses on the south-east London region so company owners in other areas should consult their own local authority about its business support services. 

Greenwich

The borough itself does not offer loans or grants to local businesses; however, its Greenwich Business Support Service can refer SMEs to business advisers, who can help with suggestions for raising funds and general financial management.

The borough also has a business grant finder service on its website. It has categories for co-operatives, limited companies, partnerships and sole traders. Grants cover a wide range of activities, anything from export and international trade to rural development to housing to R&D. 

Kent County Council

The Kent and Medway Business Fund offers loans to businesses locally but does not give grants as of March 2024. 

Lewisham

The UK Shared Prosperity Fund supports the Lewisham Business Resilience and Growth (BRAG) programme, which helps businesses with marketing and mentoring, rather than direct cash grants. Also available to Lewisham residents is the Business and IP Centre’s resources. These include tailored support, workshops and webinars and business books. In addition, BRAG’s Lewisham Ambassadors, who are local business people, are on hand to help new entrepreneurs.

The Grant Finder service is also available, accessed through Lewisham council’s website.

‍Finding a grant that’s right for my business

Grants schemes open and close all the time so it is worth checking relevant websites regularly. In addition, you could consider taking on a grant adviser, who will do the research and put together the application. However, advisers will charge a fee and not all funders accept applications via professional grant consultants.

If you think you need professional financial advice on securing the extra funding needed to expand your business, whether that is by means of a grant or a loan, please contact Finsbury Robinson on 020 8858 4303 or email us at info@finsburyrobinson.co.uk.