Small business grants in the UK (and how to apply)

Whether you’re a small business owner or an aspiring entrepreneur, a cash injection is never a bad thing, especially with economic uncertainties making it tougher than ever to start a business.

Small business grants are non-repayable funds from government or private sources that allow UK entrepreneurs to fund equipment, training, and operations without interest or equity loss.

A business grant is just one of many sources of business finance, and there are plenty of schemes out there to apply for. In this article, we’ll give you an overview of grants that could work for your business and what you can do to get your hands on them.

What is a small business grant?

Small business grants are a sum of money given to entrepreneurs and business owners, either by the government or private organisations. Unlike a business loan, you won’t have to pay interest, give away equity of your company, or even pay back the money at all. However, most business grants are still subject to tax. 

With this, you can invest in all the essentials you need for your business operations, including education, materials, employees, training or equipment.

There are several types of business grants available, including:

Direct grants

Put simply, direct grants are the cash sum that is given directly to the business. The business doesn’t always have control over how it’s spent, however, as in some cases, it’s allocated to a specific project or initiative.

Resource and training grants

Resource and training grants offer specific resources, such as training and mentorship, to help support a business’s growth and development. These kinds of grants often focus on improving leadership, financial management and operational skills, helping founders build more sustainable businesses.

Green grants

As the name suggests, green grants refer to a sum of money given to a business to support the implementation of environmentally friendly practices and reduce its carbon footprint. This can include investing in energy-efficient equipment, sustainable materials, waste reduction initiatives, or low-carbon technologies.

Soft loans

While not technically a grant (as it needs to be paid back), soft loans are known to offer more generous repayment terms compared to traditional banks. For example, lower interest rates, longer repayment periods or repayment holidays — making them a more accessible option for early-stage or growing businesses that may struggle to secure conventional finance.

What business grants are available for women founders?

For years, the gender funding gap has created barriers for women seeking to access finance for their business ventures.

In 2025, it was reported that just 1.3% of equity funding went into female-led businesses. Meanwhile, male-led companies continue to attract a large share of investment, including funding from angel investors, private equity and venture capital.

In light of this disparity, several organisations have started offering grants especially for female founders, to help them gain a leg up in the venture capital landscape. We’ve highlighted four of them below.

Female Founders Grant Competition

The Female Founders Grant Competition is delivered by Techstart Ventures in collaboration with Women in Business NI and forms part of the Proof of Concept (PoC) Plus fund. The programme is designed to support female entrepreneurs in developing early-stage ideas or prototypes into commercially viable businesses.

Applications must be submitted by creating a Techstart account, and close on 27 January 2026 at 17:00pm (GMT). Only available for businesses based in Northern Ireland.

Innovate UK (Women in Innovation)

Innovative UK runs a range of funding competitions, including dedicated awards for women founders designed to support business growth and help close the gender gap in entrepreneurship.

One of those is the Women in Innovation Award, which supports female entrepreneurs each year with both funding and expert support. Applications close on 4 February 2026, and you can apply through the government website.

Cartier Women’s Initiative

The Cartier Women’s Initiative supports female-founded organisations through several business grants. Its main award programmes include the Regional Awards and the Science & Technology Pioneer Award.

For next year’s award, applications will be open from 16 April 2026 to 16 June 2026. You can find out more about the awards here.

HATCH support programmes

HATCH supports underrepresented entrepreneurs, including female founders, in developing the essential knowledge and skills needed to start a business. It offers three programmes – Launchpad, Incubator and Accelerator.

Once you graduate from a HATCH programme, you may be entitled to apply for funding through its grant fund. HATCH has not yet launched its programmes for this year, but you can sign up for the waiting list to be notified when they’re available.

What business grants are available for young people?

The UK is home to some extraordinary young entrepreneurial talent, and their appetite for starting a business is catching.

According to research by Travel Counsellors, 73% of 16-24-year-olds would be open to starting their own business in 2025, with the opportunity to make more money being cited as the main motivator.

These are the top small business grants available for entrepreneurs aged 30 or under.

The King’s Trust Enterprise Programme

The King’s Trust Enterprise Programme has helped over 91,000 young people to start their own businesses.

Its programme includes one-to-one support, creating a business plan, interactive workshops and the opportunity to apply for a Test My Business Idea grant of up to £500. From there, you can apply for additional funding of up to £30,000 to cover startup costs. You can get started right away on The King’s Trust website.

The YOUNG EDGE competition

If you’re a young entrepreneur based in Scotland, the YOUNG EDGE competition may be worth looking out for. With a mission to discover and fund new entrepreneurial talent, YOUNG EDGE offers aspiring entrepreneurs under 30 the chance to win an award of up to £15,000.

Applications for Round 27 will open in February 2026.

The SWEF Enterprise Fund

In partnership with Community Foundation NI, the SWEF Enterprise Fund aims to support 500 young entrepreneurs a year in developing their businesses.

The fund offers entrepreneurs aged 18-30 grants of up to £2,000 to launch their business and also offers support and advice to build essential skills. You can apply for SWEF funding through its online portal.

Neath Port Talbot Innov8 Programme

For young entrepreneurs based in Port Talbot, Wales, the Innov8 Programme provides support in starting, developing or growing a business.

As well as a grant of up to £1,000 for costs like marketing and equipment, it also offers business planning, tailored support and ongoing mentorship for existing businesses. Find out how to apply here.

What business grants are available for social entrepreneurs?

Grant programmes are often targeted towards socially impactful businesses that aim to tackle society’s biggest challenges.

Here are a few grants that are open to social impact startups:

Big Issue Invest Impact Loans

The investment arm of The Big Issue offers soft loans between £20,000 and £200,000 (or up to £400,000 in some cases) to help social enterprises and charities grow.

To apply, simply register your interest online. From there, a member of Big Issue’s investment team will contact you to determine your eligibility and provide you with an application form.

Invest Impact Fund

Big Issue and UnLtd have teamed up to form the Invest Impact Fund, in which entrepreneurs can obtain soft loans up to £1,500,000. It also offers businesses the choice between three funding types – equity, revenue share and patient debt.

Funding from Invest Impact can be requested through its online application form.

Big Issue Invest Social Impact Debt Fund IV

Launched in September 2023, this fund is aimed at companies tackling the UK’s housing and social care crisis. Eligible businesses can apply online for loans worth between £1 million and £4 million. 

UnLtd Starting Up Award

Supporting socially-conscious businesses, UnLtd’s Starting Up Award offers up to £8,000 for social enterprises that are in their early stages and haven’t started trading yet. Applications opened on 6 January 2026, and you can apply by creating an UnLtd account and completing an application form from there.

UnLtd Scaling Up Award

For those a little further down the line, UnLtd’s Scaling Up Award offers social ventures up to £18,000 in funding if the business has been trading for over a year (selling goods and services). As with the Starting Up application process, you’ll need to create an UnLtd account and complete an application form from there.

Pounds for Purpose

Pounds for Purpose is a social enterprise fund under the property management company Firstport. Designed for socially conscious young entrepreneurs, Pounds for Purpose offers up to £500 for Scottish-based individuals who are looking to explore a business idea to address social issues.

You can apply for a grant through its online portal.

Key Fund

This social investment fund is designed to support social enterprises, charities and community businesses that aim to create a positive social impact.

It provides investments between £5,000 and £300,000 and works to support organisations that may struggle to access traditional finance, particularly those working in disadvantaged communities. Entrepreneurs can apply online at any time of the year.

What business grants are available for People of Colour?

In the UK, only 0.24% of venture capital was allocated to non-white founders in the last decade.

Despite the growing recognition of the need for diversity in business, many minority-led startups struggle to secure the investment needed to grow.

Fortunately, there are grants and funding initiatives that have been established to support entrepreneurs of colour. Here are some key options available.

The Black Artists Grant

Funded by Creative Debuts, The Black Artists Grant (BAG) provides small, unrestricted awards of £500 per month to help Black artists with living expenses, art supplies, project development or anything else they need to sustain their creative practice.

Entries are accepted throughout the year on the online application form.

The Black Funding Network

The Black Funding Network (BFN) is an initiative dedicated to supporting Black-founded and Black-led non-profit organisations. Operating as a community of individuals and institutions, BFN organises live crowdfunding events throughout the year, where selected entrants present their projects to potential donors.

The deadline for applications is expected to be 10 July 2026. You can submit your application through BFN’s online portal.

How can I find business grants in Scotland, Wales, and Northern Ireland?

If you’re running a business in Scotland, Wales or Northern Ireland, you might want to narrow down your search to grants specifically for businesses in those countries. Below is a list of available grants in each nation.

Scotland

• Culture & Business Fund Scotland: provides match funding to cultural projects. C&BS is currently developing a new application system, but you can find out more about it here. 
• Regional Selective Assistance (RSA): a discretionary grant aiming to encourage capital investment and job creation in Tier 2 and 3 areas. Businesses can enquire about applications here.
• SMART: SCOTLAND: a research and development (R&D) fund specifically for innovative, high-risk startups. The maximum grant is £100,000. Businesses can enquire about applications here.
• Scottish EDGE: a competition in which entrants can win up to £100,000 on a split grant/loan basis. You will need to create a Scottish EDGE account before you can apply.
• Creative Scotland: a national public body that supports and funds the arts, screen and creative industries in Scotland, distributing funding from the Scottish government and the National Lottery. There are several funding programmes available that you can apply for.

Also, depending on where you’re based, you may be able to apply for grants offered by the Scottish Enterprise, Highlands and Islands Enterprise, and your local council.

You can find business support on the Scottish government website, or check out our list of business grants available in Scotland.

Wales

• ReAct+: offers up to £4,000, paid out in quarterly instalments, to businesses that recruit a new employee who is disabled and has been made redundant in the last 6 months. You can submit an application form here.
• Blaenau Gwent – Kickstart Plus: a joint initiative funded by UK Steel Enterprise and administered by Blaenau Gwent County Borough Council. The funds support businesses up to three years old and offer a maximum of £2,500 in funding. You can register your interest here.
• Caerphilly Business Startup Grant: a flexible grant scheme that supports residents of Caerphilly County Borough to start a business, but who can’t access other sources of funding. It provides up to 50% of the eligible project costs to a maximum of £500. Find out how to apply here.

The Welsh government offers a guide to financial aid and grants on its website, with Business Wales being the main support service for entrepreneurs looking to raise funding.

You can use the Business Wales finance locator to find grant options that are right for you or get an overview of the options available in our guide to business grants in Wales.

Northern Ireland

• Whiterock Growth Finance Fund: fund management company Whiterock offers small businesses and SMEs commercial loans between £500,000 and £2 million to fund growth. You can apply by contacting the company here.
• Skills Advancement Grant: small businesses that are customers of Invest NI can apply for a 50% discount on employee training costs up to £15,000. The grant is available for 18 months only. You can apply by contacting NI Invest here.
• Investment Fund For Northern Ireland (IFNI): an investment fund that provides up to £5 million in equity loans for early-stage and growth businesses. You can apply by contacting the IFNI here.
• NI Small Business Loan Fund: offers up to £15,000 for startups and £125,000 for businesses over two years old. To apply, simply complete the online application form.
• From Student to First Sale (FS2FS): if you’re a university graduate with a viable business idea, FS2FS offers a £15,000 grant to help you set up for self-employment. Only available to individuals who have graduated in the last six months and are working with the students’ union enterprise support service. You can apply by contacting NI Invest here.
• Business Innovation Grant (BIG): offers financial support up to £20,000, with the aim to help small businesses and SMEs develop and launch new products, services or processes to the market. You can apply by contacting NI Invest here.

Enterprise Ireland is the government agency responsible for supporting Irish businesses, including those in Northern Ireland. A range of grant support can be found here, where you can search for grants by your stage of business development.

You can also visit NI Direct’s business support page for further business assistance services.

Are small business grants taxable?

Small business grants can be taxable, so you should factor them into your tax planning.

Most startup business grants are considered part of your taxable profits. This means you’ll typically pay corporation tax (for limited companies) or income tax (for sole traders/partnerships) on the amount.

However, there are exceptions. Capital grants used to purchase assets like equipment, machinery, or property may not be taxed immediately, though they can affect your capital allowances. Some government-backed support schemes may also be tax-free, depending on the programme and its eligibility criteria.

It’s important to keep detailed records of any grant you receive, including how the funds are spent, as HMRC will want to see that they were used for legitimate business purposes. Consulting an accountant or tax advisor can also help ensure you claim any allowable deductions and plan for the tax impact of your grant effectively.

What do you need to get a business grant?

Each grant will have a different application process, with different entry criteria and requirements to fulfil. But, as with most potential business opportunities, the reward is worth the effort.

You should take the time and do the research to find the right small business or startup grants that best suit your business. You don’t want to apply for a scheme you’re simply not suited to or eligible for, as it’ll only waste the time you need to find the right one.

But once you’ve found a suitable grant, you can start the process of trying to obtain it. For your best shot during the application process, you should have:

• A detailed and up-to-date business plan
• A clear spending plan
• Previous company accounts, which you can download from your accounting software
• An outline of why your business qualifies for the grant

How long does a grant application take?

The time it takes to complete a grant application can vary widely depending on the type of grant, the complexity of the application, and the funders’ process. Here’s an overview of how it typically works:

• Preparation: researching suitable grants, checking eligibility, and gathering documents (such as business plan, financials, proof of identity, etc.).
• Completing the application: simple grants may take 1-3 hours, while more detailed grants (especially those for significant funding) can take several days to write, review, and refine.
• Review and decision: once submitted, funders typically take 4-12 weeks to review applications, but larger government or corporate giants can take longer (sometimes up to six months), especially if they require interviews, pitches, or additional documents.
• Post-approved process: if your application is successful, receiving the funds and any associated support (like training or mentorship) can take extra time.

Tips for applying for a business grant

To maximise your chances of securing a grant and beating the competition, you’ll need to be prepared, stay organised and keep on top of deadlines. Here are some top tips to help you nail your application:

• Apply ASAP: make sure you’re continually keeping an eye on deadlines and application windows, as many grants operate on a first-come, first-served basis.
• Stay organised with project management tools: applying for grants involves juggling deadlines, documents, and stakeholder communications. That’s why using good project management software can help you track key dates, set reminders and ensure you don’t miss any critical steps.
• Contact someone from the awarding body: this way, you can get personalised advice in case anything goes wrong with your application.
• Consider hiring a grant consultant: this is someone who can help you find the grants best suited for you. However, some bodies won’t let a third party apply for you, so make sure to check the grant’s rules before looking for external help.
• Pay attention to the grant’s objectives: this will help you be clear on how you will use the money to fulfil these specific objectives.
• Be honest: if you need to bend the facts about your business to fit with the grant’s criteria, it’s not the right grant for you.

The information in this article is correct as of January 2026.