Government grants for small businesses in the UK

Government grants are an attractive way for UK businesses to fund growth. Unlike a loan, grant funding generally doesn't need to be repaid, as long as you meet the scheme's eligibility criteria and use the money for its intended purpose. But grants aren't guaranteed. Many are highly competitive, limited to particular sectors, regions or types of project, and may only cover part of your costs. Some schemes also have strict application windows or require you to contribute towards the total project cost. This guide covers the major government grant schemes available to UK small businesses, including how much funding they offer, what it's designed to support and who can apply.

What counts as a government grant for a small business?

A government grant is a sum of money awarded by central government, a devolved nation or a local council to help your business do something specific, such as buying new equipment, hiring an apprentice or researching a new product. Unlike a business loan, you don't need to repay a grant, provided you meet the eligibility criteria and use the funding for its intended purpose. Most grants come with conditions attached. You may need to report back on how the money was spent, contribute some of your own funds towards the total cost, or complete the project within a set timeframe.

It's worth being clear about what isn't a grant, since the two are often confused. Start Up Loans, run by the British Business Bank, are personal loans rather than free money. You can borrow £500 to £25,000 per founder, up to £100,000 per business, at a fixed rate of 7.5%. They're a genuinely useful route into funding, but they sit in a different category to a grant.

Which government grants are available for small businesses right now?

There's no single grant that covers every small business. Funding is instead split across national schemes run by government departments and Innovate UK, sector specific programmes, and local grants delivered through councils and growth hubs. The table below sets out what's currently open or recurring at a national level.

For a fuller, searchable list beyond this table, the government's own Find a Grant service lets you filter by business type and eligibility.

Are you eligible for a government grant?

Eligibility depends on the scheme, but most UK grants assess a similar set of criteria.

• Where you're registered and trading. Most schemes require your business to be registered and operating in the UK, and some are restricted to a specific nation or region.

• Your size. Many small business grants use the official SME definition to define whether you're eligible: fewer than 250 employees, turnover under £50 million and a balance sheet total under £40 million.

• Your sector. Innovation and manufacturing grants in particular are often restricted to specific sectors, such as advanced manufacturing, life sciences or digital technology.

• Your stage. Some schemes are only open to businesses that haven't started trading yet, others are aimed at established businesses looking to grow, and a few, like the apprenticeship hiring incentive, apply to any employer taking a specific action.

• Whether you can contribute towards the cost. Many grants, including Made Smarter Adoption and Investor Partnerships, require you to match the grant with your own money or investment, so you'll need to be able to fund your share upfront.

Because eligibility is scheme specific, the fastest way to find out if you qualify is to check the individual scheme's page directly, rather than relying on a general guide like this one.

How do you find grants specific to your business and location?

Start with the Find a Grant service, the government's central directory, which lets you filter by eligibility before you apply. From there:

• Search the business.gov.uk funding finder for grants, loans and equity options in one place.

• Contact your local growth hub or council directly, since small, local grants like start up funds and productivity grants are rarely advertised as widely as national schemes and are often only listed on the council's own website.

• If you're in Wales, Scotland or Northern Ireland, check Business Wales, Scottish Enterprise or Business Gateway, and Invest NI, since these often run grants that don't appear in England focused search tools.

• If you're in manufacturing, check Made Smarter's regional pages directly, as delivery and available funding vary by area.

What if a grant won't cover the full cost, or you're not eligible?

Most grants come with a cap, a matching requirement, or a narrow list of what the money can be spent on, so they rarely fund an entire project on their own. Here's how a grant compares with other finance options.

What to do if a grant isn't enough

If you don't qualify for a grant, or you need funding faster than a competitive application allows, Capitalise gives you access to a panel of 130+ UK lenders through one application. Just apply for funding and you can get matched with lenders likely to approve your business, with support from a dedicated funding specialist throughout.