Start-up business grants available to new organisations – explained

Start-up business grants can help get your new business off the ground. It can be both challenging and exhilarating starting a business and you may be looking for some financial help. In the early stages of starting up a business, receiving grant funding can be greatly beneficial. Grants can be provided by the government, local councils, and even private organisations.

What’s the difference between a grant and a loan?

A loan is money you receive for your business that you will have to pay back within an agreed timescale. A grant is an amount of money that you won’t be expected to pay back. This is the case as long as you keep to any conditions that are attached to the grant. This could be terms such as a job creation target or deadline.

You will need to write a funding proposal in order to receive a business start-up grant. Often, multiple organisations will be applying for a funding opportunity. A funder will evaluate the grant proposals that are submitted to them. They’ll award funding to businesses that will put their money to best use and achieve the most value for money.

Start-up business grants in the UK usually cover only part of the total costs involved for projects or a start-up. A lot of the time, you will likely need to provide match funding alongside any business grant you receive. Every grant will have a different application process which will be stated in the grant documents.

What is a small business grant?

There are many different types of grants for business to start a business available covering an array of sectors. They come in all shapes and sizes. From cash grants for small businesses, council business grants to R&D funding and charity funding to start-up grants. In general, government business grants can be split into the following three types:

  • Direct grants

This when money is granted directly to a new business to cover start-up essentials, including staff training and equipment. It is unlikely you will have a business grant that covers all costs. They will often expect you to provide a percentage of the value of the business grant.

  • Soft loan

A soft loan isn’t a grant, it’s a government-backed loan. As mentioned above, you will need to pay the money back via the agreed repayment terms and conditions. These will often be more generous than those offered by banks and building societies. This means that your business could enjoy longer repayment periods or pays lower interest rates.

  • Equity finance

An equity finance can offer start-ups and young businesses reductions on income tax and investments. Typically, they can offer them if a business is less than two years old and has less than 25 employees.

What type of business start-up grants are available?

There are a wide array of new business start-up grants available across the UK. They can be for a variety of organisations, businesses and charities. For example, business grants for small businesses, business start-up grants for over 30s, business start-up grants for the unemployed, etc.

Start-up business grants in the UK 

You are able to find various start-up grants across the UK. These schemes and start-up funding for UK businesses enable support for new organisations. Often, there will be grants available to start a business in England, Wales, Scotland and Northern Ireland.

The UK government offers start-up grants for business across the UK. However, there are also business funding opportunities specific to businesses operating in each country independently. Business start-up grants for small businesses may be available from regional and local authorities.

Innovation funding grants

Businesses that undertake research and innovation as part of their core business may be eligible for research and development grants. Innovate UK has grants in accordance with the Department for Business, Energy and Industrial Strategy (BEIS). There are also other funding opportunities including research and development. The UK government R&D funding is at its highest level in four decades. This is because the government is wanting to level up the UK. They are encouraging businesses to be innovative, sustainable and have a focus on research and development. If you’re thinking of starting up a business that specialises in R&D, it may be worth looking into available grants.

Business start-up grants Scotland

If you’re based in Scotland, there are Scotland-specific business start-up grant opportunities available. These grants can be provided by the government, local councils and private organisations. There are also business start-up grants in Scotland that can help businesses affected by Coronavirus.

A new Scottish funding model came into place at the end of February 2021. The funding model creates a more simple and inclusive funding model that helps create jobs and a greener economy. The majority of their grants will be delivered as funding calls. There will be a series of funding rounds that open and close for fixed amounts of time.

The main business start-up grants in Scotland have the objectives of:

  • Creating jobs
  • Specialising in research and development
  • Creating social, environmental and economic benefits
  • Encouraging collaborative projects leading to new technology or ideas.

Business start-up grants for unemployed individuals

You may be eligible to receive a new business start-up grant to start a business if you are unemployed. Mentoring services and an allowance are available to start your own business through the New Enterprise Allowance from the government. The scheme is designed to help the long-term unemployed back to work by helping them set up their own business.

You may be eligible if you’re over 18 and either:

  • Receive Income Support and you’re a lone parent, sick, or disabled
  • Or your partner gets Universal Credit, Jobseeker’s Allowance or Employment and Support Allowance.

Through the New Enterprise Allowance, you’ll get a mentor who will give you advice and support. They will help you set up your business and start to trade. Once you’ve made a business plan that is approved by your mentor you:

  • May get a weekly allowance worth up to £1,274 over 26 weeks
  • Can apply for a loan to help with start-up costs.

How do I apply for start-up grants in the UK?

  1. Find the right funding opportunity for your business

Finding the right start-up business grant in the UK can take time. You want to ensure that you find a grant that fits your business not the other way around. You shouldn’t be trying to make your business fit a grant funding opportunity. This is essential. You can use a SWOT analysis to decide if it’s the right funding opportunity for you. You should assess the:

  • Strengths
  • Weaknesses
  • Opportunities
  • Threats.

It could also be helpful to ask yourself the following questions:

  • Do the funder’s aims and objectives align with those of your business?
  • Are you actually eligible for the funding opportunity?
  • Do they offer the amount of funding that you require?

Not only should you assess whether the opportunity is right for you, but there are other factors to consider too. For example:

  • Applying for new business start-up grants can be incredibly time-consuming. Do you have time to complete and submit the application before the allotted deadline?
  • Do you have a backup plan? Grants are extremely competitive, so it’s important to consider your other options in case the funding is awarded elsewhere.
  • Does the grant or funding opportunity cover all of your costs? For example, you might be expected to match the amount with your own money. If you’re applying for new business start-up grants, you might not be in a position to do this.

  1. Read the grant objectives

The grant objective documents contain important information. They will often detail eligibility criteria, qualifications and other important information. It’s vital that you read this thoroughly to see if it is a suitable opportunity for you. There’s no point in submitting an application if you don’t qualify for it or don’t possess a pre-requisite. So, even if there are 50 pages to read, you must digest all of the available information.

Take the time to learn and understand the funder and their objectives. Learning why the grant is being awarded can help you tailor your application accordingly. If you’re unsure, contact the grant awarding body and they will be more than happy to discuss it with you.

  1. Have a full-proof business plan

Establishing a robust business plan is one of the most crucial starting steps in order to win grant funding. This will help you demonstrate that you have a thorough understanding of your business. It will also help you understand pricing and what’s required in order to break even or make a profit.

Depending on the business start-up grant, you may be entitled to assistance from a mentor. They may be able to help you develop your business plan. Funders want to see extensive plans showing how you’ll put their money to use if you’re successful. The more in-depth information you provide, the easier it is for funders to understand how they can help.

It’s important to tailor your business plan to each opportunity that you apply for. However, as a general rule, it should include:

  • Your mission statement
  • Products and services
  • Information about your company
  • Your employees
  • Financial information
  • Growth plans
  • Your USP(s)
  • Target audience
  • Achievable milestones.

  1. Focus on what the grant is going to be used for

Grants are usually awarded for something specific such as a project or a business with specific objectives. Focus and clearly explain what the money will be used for. When writing your bid for funding, it should show how this will help grow your business and benefit others.

  1. Check your funding

The maths needs to check out. Most grants will look to match the amount you’re willing to invest. So, if you’re seeking a grant of around £15,000, then make sure you’re matching the amount.

You should be humble in your price evaluation and realistically evaluate the running costs. You shouldn’t be asking for money for, say, Apple Macs when a cheaper service provider will do. Demonstrate that you can manage cash flow as this will reassure a funder that their money is in good hands.

  1. Start planning early

A successful grant proposal application is all about planning and time management. This is essential if you are to be successful. As mentioned above, some grants only open at specific times of the year. It’s best to be prepared as some grants have a limited amount of funds available. So, submitting early could raise your chances of securing additional funding for your business. Doing the groundwork early can help you get a better idea of what’s needed and where you have gaps. This will enable you to adequately see what needs more work.

Successfully gaining a start-up business grant can give your organisation the boost it needs. However, securing funding takes a lot of preparation. It can be hard to know where to start if you’ve never done it before.

What if you’re rejected?

As we’ve already established, new business start-up grants are highly competitive. So, with every grant that you apply for, there’s always a chance that you’ll be rejected. The important thing is to not let it hold you back from applying for future funding opportunities.

If you’re rejected, it’s always a good idea to ask the funder for feedback. Finding out where you went wrong will help you avoid making the same mistakes in future applications.

Grants available for small businesses 

Securing grants for small businesses can be a challenge. It can be challenging looking for them and a challenge applying for them – particularly if you’re a new business owner. If successful, however, they can provide some financial support and create quite the confidence boost.

Grants available for small businesses are constantly opening and closing, it can be hard to keep track. This blog contains the grants that are currently available to UK businesses at the time of publishing (July 2021). These grants range from government funding to private franchises.

What type of funding is available?

Grants and funding opportunities are available to SMEs (small and medium enterprises). Often, they are based in specific geographical locations, in a specific sector or have certain objectives that need to achieve. These aims and objectives could range from lowering carbon emissions to job creation.

Small businesses are defined as:

  • An organisation with fewer than 50 employees.
  • A turnover of less than £6.5million and a balance sheet totalling £3.26million.

Medium sized businesses are defined as:

  • A business with no more than 250 employees.
  • A turnover of £25.9million and a balance sheet of no more than £12.9million.

Some grants available for small businesses may not be monetary. Some service providers offer free mentoring to develop a business and workshops.

Available grants for research and development

Now is a great time to get involved and start applying to research and development (R&D) funding opportunities. UK government R&D funding is at the highest level in four decades. There are opportunities for grants for small business start-ups, grants for limited companies and more. They can help subsidise, support and enable new businesses to get involved with innovative research and development opportunities.

Other Innovate UK funding opportunities include:

  • SBRI competition – Improving Hip Fracture Outcomes Using Data, phase 1
  • ISCF TFI: large collaborative R&D projects
  • Commercialising Quantum Technologies: feasibility studies round 2
  • African agriculture knowledge transfer partnerships (KTP): 2020 to 2021, round 5
  • Knowledge transfer partnerships (KTP) 2020 to 2021, round 5
  • SBRI: Improving Multimorbidity Acute Care Using Data Analytics, phase 1
  • ATF: moving the UK automotive sector to zero emissions.

Grants available for small businesses & start-up business grants

Gigabit Broadband Voucher Scheme

The Gigabit voucher scheme is a little different to a traditional grant. The vouchers are essentially a grant for small business owners in rural areas. They will go towards the cost of installing gigabit-capable broadband connections.

SMEs can claim £3,500 for the cost of connection. You can find out if you are eligible by using the postcode checker on their website. Voucher funding can only be used through a broadband supplier registered to this scheme.

Kickstart Scheme Grant

The Kickstart Scheme provides funding to create new jobs for 16 to 24 year olds on Universal Credit. A business can apply for this scheme to cover:

  • 100% of the National Minimum Wage (or National Living Wage depending on the age). 25 hours per week for a total of 6 months
  • Associated employer National Insurance contributions
  • Any relevant workplace pension contributions (automatic enrolment).

This is one of the grants available for small businesses that can provide subsidies for hiring vulnerable people. Employers can spread the job start dates until 31st December 2021. You will receive funding until 30th June 2022 if a young person starts their job on the 31st December 2021.

Further funding is available to provide support so that young people on the scheme can get a job in future.

How to apply:

You can apply for a Kickstart Scheme grant by either:

  • Applying online yourself
  • Applying through a Kickstart gateway who is already working with the Kickstart Scheme. This could be any time of organisation such as a local authority, charity or trade body.

What you’ll get:

You will receive funding of £1,500 per job. This should be spent on setup costs and supporting the young person to develop their employability skills. Such as:

  • Training and employability support (provided by you, a Kickstart gateway or another provider)
  • Uniform or PPE
  • IT equipment and software.

Job criteria:

The jobs that are created with Kickstart Scheme must be new jobs. They must not:

  • Replace existing or planned vacancies
  • Cause existing employees, apprenticeships or contractors to lose work or reduce their working hours.

Jobs must:

  • Be a minimum of 25 hours per week for 6 months
  • Pay at least the National Minimum Wage or National Living Wage for the employees age group
  • Only require basic training.

You need:

  • Your Companies House reference number, Charity Commission number or Office or the Scottish Charity Regulator number if you have one
  • Details of the jobs and their location
  • Your organisation’s address and contact details.

Grants for small business start-ups 

New Enterprise Allowance

The New Enterprise Allowance is for unemployed people who want to start a business. This grant for small business start-ups will provide a weekly allowance worth up to £1,274 over 26 weeks. You’ll also be provided with a mentor and can apply for a loan to help with start-up costs.

You need to be receiving certain benefits and have a business idea that could work. For support, you may be eligible if you’re over 18 and either:

  • You or your partner get Universal Credit, Jobseeker’s Allowance or Employment and Support Allowance
  • You get Income Support and you’re a lone parent, sick or disabled.

Fantastic Services £5,000 (Re)start Grant

Fantastic Services, a home services franchisor, has a programme offering up to £1 million of cash grants to start a business. Each £5,000 will enable 200 people to start up their own business within the domestic service industry. They are providing a home services business grant for those who have been affected by the pandemic.

This grant for small business start-ups is open to applicants in all parts of the UK. The grant can go towards initial business start-up costs such as equipment, supplies, branding and more. They will also provide a training programme to help entrepreneurs with the skills they need to successfully run their own franchise.

Business grants in Wales 

Caerphilly Business Start-Up Grant 

This business start-up grant helps newly formed businesses in all sectors. The applicant must be setting up in the Caerphilly County Borough. Businesses must not have started trading before application and approval. A discretionary grant can provide up to 50% of eligible project costs to a maximum of £500.

Funding can be used to go towards:

  • ICT equipment
  • Marketing
  • Capital equipment
  • Website development
  • Training building works to business premises

How to apply:

The applicant must provide a business plan with a minimum of one-year cash flow forecast, projected profit and loss. Two comparable quotes are also required for each capital item. The business must provide full-time employment for the applicant. 

Grants available in Scotland

In Scotland, there are a number of larger organisations that offer funding opportunities. It includes Scottish Enterprise, Business Gateway and Better Business Finance.

Open Fund: Sustaining Creative Development

The Open Fund has funding available for both individuals and organisations within the creative industries. The fund is open all year round with no deadlines. It aims to enable businesses to explore ways of working that will help them adapt to current changing circumstances. All applicants must have a UK bank account.

Funding for individuals: Freelance and self-employed artists and creative practitioners in Scotland. They can apply for projects supporting the development of their practice. You can apply for a grant to work collaboratively with others, or if your practice is collaborative.

Funding for organisations: For organisations and groups who are Scotland-based, whose work or project involves the arts, screen and creative industries.

Funding available: Between £1,000 and £100,000.

Northern Ireland Business Grants 

Proof of Concept Grant Fund

The Proof of Concept Grant Fund from Techstart is a pre-commercial grant awarding fund. The grant supports entrepreneurs in Northern Ireland. The grants can be used to explore the commercial potential and viability of an innovative concept. Grants are awarded on a quarterly basis.

Funding available: ‘Concept Grants’ of up to £10,000 and ‘Concept Plus’ Grants of up to £35,000 are available. 

Everything you need to know about self-employed business grants

Self-employed business grants can be a greatly appreciated helping hand if you’re a business owner. The recent COVID-19 pandemic left many of the self-employed struggling to keep their head above the water. However, there are some grants available to help ease the financial burden, boosting self-employed business owners.

The self-employed business grants available aren’t just for COVID-19 recovery. There are grants available for innovative businesses, young entrepreneurs or businesses that have a focus on heritage.

There are a wide variety of self-employed grants available across a multitude of business sectors. From self-employed start-up grants, self-employed business grants in Scotland and COVID-19 recovery grants for the self-employed.

Our self-employed grants guide includes various relevant self-employed business grants available throughout the UK. They include various opportunities that are available at the time of publication (July 2021) and how to apply.

Below are some self-employed business grants open year-round

National Lottery Grants for Heritage 2021 – 2022

Applications for the National Lottery Grants for Heritage are open year-round. These grants cater to self-employed individuals providing businesses owners with new insights. The scope, nature and overall purpose of your business will be taken into account.

Priority will be given to businesses wishing to better humanity causes in one way or another. The Heritage Enterprise is aimed at enterprising community and commercial organisations. It works in partnership with community organisations to help them rescue neglected historic buildings and sites. This is done to return them to viable use.

Due to the pandemic, they have revised their approach to what they will fund. This includes heritage projects that will:

  • Support wellbeing
  • Encourage job creation and skills development
  • Boost the local economy
  • Create better places to work, live and visit
  • Improve the resilience of organisations working in heritage.

Each project will need to achieve their inclusion outcome of ‘a wider range of people will be involved in heritage’. They also expect all projects to demonstrate they are building long-term environmental sustainability into their plans.

There is no set amount of funds that this will provide, it’s based upon the specifics of your business and its needs. Funding can range from £3,000 – £5 million. Through the Heritage Enterprise, they can fund:

  • The purchase of a heritage asset in need of investment
  • Essential conservation work, such as structural repairs to a historic building
  • Repairs and adaptions to bring vacant and derelict buildings/sites back to commercially viable use
  • Fit-out of a building to a basic level
  • Activities to help people engage with heritage (including training in conservation, mentoring, learning, digital skills, etc)
  • Support work to help you develop and manage your project (valuations, professional fees, specialist research, employing project staff)
  • Finance costs.

Eligibility criteria

They fund applications from:

  • Not-for-profit organisations
  • Partnerships between commercial and not-for-profit organisations.

How to apply

You must first submit an Expression of Interest for a project enquiry form. Then they will notify you if you’ve been invited to make an application. Applications go through a two-round process. This allows you to apply at an early stage of planning. Then you can get an idea if you have a chance of getting a grant or not.

The project enquiry form will require the following information:

  • Summary (name of your organisation project reference code, etc)
  • Information about your organisation (contact details, address, etc)
  • Project proposal
  • Heritage focus
  • What will the project do
  • What programme outcomes you are hoping to achieve
  • Why you want to do this project (the need and demand)
  • Who will be involved in the project
  • Timescales
  • How much your project is likely to cost
  • How much you are likely to ask from them

The process goes like this:

  • Development phase application – you submit your development phase application with your delivery grant request.
  • Development phase – if you’re successful, you enter your development phase and develop a more detailed delivery phase application. You’re able to use the development grant you may have requested at this stage.
  • Delivery phase application – you submit your delivery phase application with your delivery grant request.
  • Delivery phase – if you’re awarded a grant, you enter your delivery phase and start your project using your delivery grant.

It’s worth noting that it typically takes 8 months to process an application through the organisation. Therefore, it might not be the best option if you’re needing or wanting funding ASAP. 

Innovate UK

Innovate UK provides grants to develop and realise the potential of new ideas. They offer a wide array of business grants in a variety of business sectors. Their grants for businesses include research and development (R&D), arts, design and media, science and engineering.

Your business/project should have a particular focus on innovation (hence the name). So, if your business develops new products, services and processes with a focus on innovation, it’s a great opportunity. It is also one of the many self-employed grants available.

What’s available?

The grants available from Innovate UK can range from £3,000 – £25 million.

Eligibility criteria

 The eligibility criteria for the Innovate UK grant funding opportunities will vary from buyer to buyer. It will state the eligibility criteria on the funding opportunity page. It could vary from:

  • Single applicants only
  • UK registered micro or small business
  • UK registered business or research and technology organisation
  • Carry out your research and development project activity in the UK
  • Intend to commercially exploit the project results from the UK
  • Be or involve at least one SME.

How to apply

The application process is often split into the following three sections:

  1. Project details

This can include:

  • Application details
  • Equality, diversity and inclusion
  • Research category
  • Project summary
  • Public description

  1. Application questions

The application questions will include:

  • What is the business need, technological challenge or market opportunity behind your innovation?
  • What approach will you take and where will the focus of the innovation be?
  • Who is the project team and what are their roles?
  • What does the market you are targeting look like?
  • How are you going to grow your business and increase your productivity in the long term as a result of the project?
  • What impact might this project have outside the project team?
  • How will you manage the project effectively?
  • What are the main risks of this project?
  • What impact would an injection of public funding have on the businesses involved?
  • How much will the project cost and how does it represent value for money for the team and the taxpayer?

  1. Finances

Each organisation in your project must complete their own:

  • Project costs
  • Organisation details
  • Funding details.

New Enterprise Allowance

 You may be eligible to receive a self-employed business start-up grant to start a new business if you are unemployed. The scheme is designed to help the long-term unemployed back to work by helping them set up their own business. Mentoring services and an allowance are available to start your own business through the New Enterprise Allowance from the government.

What’s available?

Through the New Enterprise Allowance, you’ll get a mentor who will give you advice and support. They will help you set up your business and start to trade. Once you’ve made a business plan that is approved by your mentor you:

  • May get a weekly allowance worth up to £1,274 over 26 weeks
  • Can apply for a loan to help with start-up costs.

Eligibility criteria

You may be eligible if you’re over 18 and either you:

  • Get Income Support and you’re a lone parent, sick, or disabled
  • Or your partner gets Universal Credit, Jobseeker’s Allowance or Employment and Support Allowance.

How to apply

Applicants for the New Enterprise Allowance can be made through JobcentrePlus.

Additional self-employed grants available

If any of those don’t appeal, there are other options. You can ask your local authority about the grants that are available in your region. There may be some funding available specific to your industry.

Local authorities have also been giving out coronavirus support packages to local business owners. These have included a range of relief funds to aid the financial burden of lost business due to the pandemic.

Common mistakes when applying for self-employed government grants in the UK

  1. Trying to make your business fit an opportunity

One of the biggest mistakes you can do is trying to make your business fit a funding opportunity. You shouldn’t try and edit your project or business to suit a funding opportunity. You should try and find a funder that matches your aims and objectives. This will increase your chance of success for your self-employed grant application.

To help find the right opportunity for you, you could use the SWOT analysis. You should assess the:

  • Strengths
  • Weaknesses
  • Opportunities
  • Threats

  1. Lack of evidence and rambling responses

Your self-employed grant application should avoid long incoherent, rambling responses. Sending off an application that is way over the word count will not put you in the funder’s good books. You need to persuade the funder that they should give you their money.

It will be very obvious to a funder if an application is merely after the money. These will be rejected in the first instance. You must demonstrate that there is a need for your business/project in the long term. Providing a sustainable long-term solution to a problem or a need is preferred.

  1. Submitting your application in the wrong format

 It is vital that you pay attention to the grant documents. These will detail all the important information you need to submit your application. It is important that you adhere to any formatting that is noted here, and funders take this very seriously. They state they only accept applications in Arial font size 12. In this case, writing your application in Comic Sans font size 10 won’t do and you might be rejected on this alone.

If a funder is wanting submissions in a video format submitted via email you should submit a video via email. If they don’t specify this type of information, ask clarification questions. A funder will be understanding. Ultimately, they want to award their funding to the best businesses/projects out there.

If you need a helping hand, you should consider outsourcing your self-employed grant application to a Grant Writing Consultant. They can help increase your chances of success. They’re well versed in writing applications and know how to best convey your message to a funder.

3 tips for success with your self-employed grant application

  1. Have a full-proof business plan

Having a full-proof business plan is one of the most essential aspects of your grant application. In order to qualify for some grants, you will need to demonstrate that you fulfil certain criteria. If you are a new business, you may need to create one in order to apply for funding.

This may involve providing a statement of your finances over a certain period (often 2-3 years). If you’ve already started trading, you’ll likely need to provide examples of your business’s position and balance sheet. If you’ve just started, you may be required to provide projections of your projections and losses in the coming years.

  1. Focus on what the grant is going to be spent on

Funding is usually awarded for something specific or such as a project or a business with certain objectives. You should clearly explain what the money awarded will be used on. When writing your bid for funding you should detail how this will help your business long-term. Moreover, you should detail how this will enable sustainable outcomes and help grow your business and benefit others.

You should realistically evaluate running costs. Don’t take for more money than you realistically need. Funders want you to be open and honest when it comes to money. They also want to know that their money is in good hands. You should demonstrate your capabilities in managing cash flow. This will give them confidence that you are trustworthy.

  1. Start planning early

 It should be no surprise that a successful grant application is all in the planning. You need to manage your time in order to be successful. A great tip is to work backwards from the submission deadline. However, this may be difficult if there is a limited amount of funding when it’s first come, first served.

Doing the footwork early on can help you get a step up when writing your application. Do some research on the funders. What’s their history and what sort of businesses do they typically support? Keep your business finances and business plan in check. Being organised and having a bank of responses can help you be prepared for any question.

If you’re unsuccessful this time around don’t give up. Ask for feedback and try again. Granted applications can be fairly time-consuming, but your hard work will pay off eventually.

Grant funding in the UK: The fundamentals

There is a whole wealth of opportunities for grant funding in the UK in both the public and private sectors. There’s an increased focus of grant funding that focuses on innovation, sustainability and COVID-19 recovery within the last year.

Who offers grant funding in the UK?

Grant funding is offered by a number of public and private sector bodies. There are many grants for businesses available, no matter their size, from small start-ups to big multinationals. The UK government and the National Lottery are a couple of the largest providers of grant funding in the UK.

The UK government provides billions of pounds a year in grant funding for businesses in the UK. They fund a multitude of different industries and sectors providing grant funding for businesses.

 Some of the most common types of projects that are supported by grants are:

The benefits of grant funding

The advantages of receiving grant funding are that you don’t need to repay the money awarded to you. Additionally, you are able to receive an increase in investment without losing control of your business. Being awarded funding can also improve your confidence, knowing that your venture is endorsed via an external body.

You don’t need to pay the money back if you succeed in securing a grant. However, there will be consequences if you falsify claims in order to be awarded a grant. Funders want to see their money go towards a worthy cause. They want to be sure that their money will provide a long-term solution and return on investment.

The challenges of grant funding

Pretty much every grant funding scheme works differently and has different requirements and eligibility criteria. Often schemes will have a limit on the amount of funding you can receive. This could result in only part of your requirements being met. This could result in leaving you to find additional ways to foot the bill.

Particularly due to the COVID-19 pandemic and its impact on many businesses there has been increased competition for grant funding. Gaining funding is proving to be more of a struggle due to the increase of businesses applying for help.

How to find the right grant funding for your business

Ultimately you want to find the best possible and most suitable grant funding opportunity for your business. You should find one that fits your project as much as possible. Don’t try to make your project fit a funders brief. A business should ensure that the funder’s objectives, aims and eligibility criteria fit your own. If they don’t, they’re likely not going to be the most suitable funder for you. In this case, it’s best to keep looking.

A useful way to find the right grant funding opportunity for your business is by conducting a SWOT analysis. By assessing the strengths, weaknesses opportunities and threats, you’ll be able to see if they’re right for you.

Most likely, you can only apply for funding in the same geographic area as your business. For example, if you have a business in Scotland, you can apply for The Scottish National Lottery Community Fund. Your businesses would not be eligible for Lottery funding opportunities in Wales. Funders like to keep it local allowing the funding to benefit local communities.

Consider the format for start-up business grant applications 

The format for grant funding applications in the UK will vary depending on the funder. You may need to register and have an account or take a quiz. Below are some examples of the format for grant funding applications. These are specific examples of each one independently. When applying for a grant, it’s best to check their website to find out what they require.

National Lottery Funding

The National Lottery funds a wide range of opportunities across the UK. They award grants to various charities, not-for-profit organisations, businesses, projects and communities. Their funding is typically split between those under £10,000 and over £10,000

For any National Lottery Fund grant, you’ll need to state where your project will take place. Whether it’s in England, Northern Ireland, Scotland or Wales. Depending on the opportunity, you might need to fill out a form providing basic information on your business or project. It should be filled out as fully as possible, you should answer the questions to the best of your ability. They’ll then get in contact if they are interested in taking it any further.

Some grant funding opportunities will allow you to send an email or video instead of completing the online form. It will state on the opportunity if this is an option. Often videos shouldn’t be longer than five minutes. You may need to include the following information if you decide to make a video:

  • The name of your project
  • What your organisation does
  • How much money you’ll need and how long will you need it for?
  • What you would like to do
  • Where the project will take place
  • The demand for the service
  • Who will benefit from the project?
  • What difference will your project make
  • Why you’re best placed to deliver the project.

You may be required to answer more or less questions that relate specifically to the project at hand.

Arts Council – National Lottery Project Grants

The Arts Council have teamed up with the National Lottery and has £77.9 million in available grants. They primarily focus on arts and culture projects involving local community and cultural organisations, museums and libraries and artists.

There are three steps in order to apply for funding:

  • Take the quiz. This helps businesses to think about different aspects of their projects, helping them get ready for the application process.
  • Read the guidance. Businesses should read all the documents and supplementary guidance that’s available for the grant.
  • Register on Grantium. In order to apply for Arts Council grants, you must register on their online portal, Grantium. Each account needs to be verified, so it’s best to do this as soon as possible.

Innovate UK

There are two application processes for Innovate UK grant funding. These are:

  • Digital Innovation Funding Service

You’ll need to create an account with the Innovation Funding Service in order to apply for any Innovate UK opportunities. All sections within the application must be completed before you submit it.

  • File Transfer Protocol (FTP)

The FTP is used by Innovate UK for some opportunities that aren’t able to otherwise use the Innovation Funding Service. It is sometimes used for international competitions and these funding opportunities will require you to register to apply online.

Registration for these opportunities closes at midday one week before the relevant grant funding submission deadline.

Once you have registered on the FTP, you will receive an email that contains:

  • Your username
  • Password
  • Unique application form
  • Secure FTP site URL.

Any applications that are submitted by email will not be considered by Innovate UK unless stated otherwise.

Once you click on the FTP site URL, you’ll be taken to the public down area. Here you’re able to find the downloadable documents that are needed for the competition. You will need to sign-in, in order to submit your application for Innovate UK opportunities.

What you need to apply for start-up business grants

In order to apply for start-up business grants & UK grant funding, you may need to provide the following in the application process:

  • Details about your organisation

Typically, a funder wants to know who they’ll be giving potentially millions of pounds too. So, you will need to provide information about your organisation. This can include the legal name, address of your organisation and what type of organisation it is. For example, a charity, a business, a not-for-profit, and so on.

  • Your organisation’s accounts

Your organisation’s accounts, including the date your accounts end each year, will most likely be required. You may need to state your annual turnover too. Don’t worry if you are a start-up or newly formed organisation and don’t have an account yet. This doesn’t mean you will be disqualified. You will likely need to speak to the funders explaining the situation and they’ll give you an alternative option.

  • A bank statement from the last three months

A bank statement from the last three months may be required at the initial stages of a grant application process. It should show your organisation’s legal name, the address the statements are sent to and what bank you’re with. It should also include your organisation’s sort code and account number.

  • The details of two people from your organisation

Some funders may require the information of two employees from your organisation during the application process. This is so they are able to contact them if they have any questions about the initial application form. Often, one should be a senior member of your team. Their names, email, contact number, home address and date of birth may be required. It’s best to have these prepared ahead of time to save you time.

Let’s recap…

There are many different types of grants for business to start a business available covering an array of sectors. From cash grants for small businesses, council business grants to R&D funding and charity funding to start-up grants. In general, government business grants can be split into the following three types:

  • Direct grants
  • Soft loan
  • Equity finance.

What grants are available in the UK?  

If you’re looking for new business start-up grants or grants for SMEs, there are plenty available across the UK. These include:

  • Start-up funding grants
  • Innovation funding grants
  • Business start-up grants in Scotland, Wales and Northern Ireland
  • Start-up grants for unemployed individuals.
  • Self-employed business grants
  • Business grants for SMEs.

What do you need to apply for new business start-up grants?  

To apply for grants for your start-up business, you need the following:

  • Details about your organisation
  • Your organisation’s accounts
  • A bank statement from the last three months
  • The details of two people from your organisation.

How to apply for new business start-up grants in the UK: 

  1. Find the right opportunity for your business
  2. Read the grant objectives
  3. Have a full-proof business plan
  4. Focus on what the grant is going to be used for
  5. Check your funding
  6. Start planning early.

Common mistakes to avoid when applying for grants:

  1. Trying to make your business fit an opportunity
  2. Lack of evidence and rambling responses
  3. Submitting your application in the wrong format.

Need help with writing your grant application?

Our Grant Writing Service is for businesses who want to start applying for grants, but don’t know where to begin. If you don’t have the resources or the time in-house to write a winning grant – we can help. Our Grant Writing Consultants have over 60 years of bidding experience. They can take care of the whole process for you – they’ll even submit the application on your behalf.

Get in touch to find out how we can help your business grow!

Our Grant Tracker is available to access. It hosts all the latest grant opportunities in the UK from over 1,500 data points. Opportunities are manually tracked, enabling for accurate keyword labelling, optimising your search for the perfect grant.

Sign up for free!

Find more helpful tips and advice in our blogs. We cover topics including:

Join the newsletter.

Keep up to date with all the latest information around Grants in the UK.

Thank you for your message. It has been sent.
There was an error trying to send your message. Please try again later.

Get a Grant Writing consultation.

Call us today on 02030512217

Request a Quote