Business Grants

A business grant is money given to a company or sole trader that, unlike a loan, usually does not have to be paid back. Grants can help you start up, take on staff, invest in equipment, go greener or expand into new markets. This guide explains the main types of UK business grant, who can apply and how to give your application the best chance of success.

Types of business grant available

Funding in the UK comes from several sources, and the type you need depends on your stage and sector:

  • Start-up grants – help new businesses cover early costs, often alongside mentoring.
  • Innovation and research grants – such as those from Innovate UK, for developing new products or technology.
  • Growth and expansion grants – support hiring, training or capital investment as you scale.
  • Green and energy-efficiency grants – help you cut carbon and running costs; see our renewable-energy grants guidance.
  • Local and regional grants – offered by councils, Growth Hubs and combined authorities for businesses in their area.

Some grants are match-funded, meaning you contribute a share of the cost yourself — typically between 25% and 50%.

Who can apply for a business grant

Eligibility varies from scheme to scheme, but funders commonly look at the size of your business (many grants target small and medium-sized enterprises), your location, your sector and how you plan to spend the money. You will usually need to be a registered business or sole trader, have a bank account in the business name and be able to show the grant will create jobs, growth or wider benefit. Read the criteria carefully before you invest time applying — our general guidance on eligibility and applications is a useful starting point.

Where to find business grants

Start with the government’s official Find a grant and Business finance support services on GOV.UK, which list current opportunities across England, Scotland, Wales and Northern Ireland. Your local Growth Hub or council economic-development team can point you to regional funding, and industry bodies often advertise sector-specific schemes. Be cautious of any organisation that charges a fee simply to tell you which grants exist — this information is free.

How to write a strong application

Grant funding is competitive, so a clear, evidenced application matters. Explain exactly what the money will be used for, the difference it will make, and how the outcomes align with the funder’s goals. Include realistic figures, quotes for any equipment, and measurable results such as jobs created or emissions saved. Keep your business plan and accounts up to date, submit well before the deadline, and answer every question in full.

Grants, loans and other funding

Grants are valuable but often limited, so many businesses combine them with other finance. A Start Up Loan, an overdraft or equity investment might bridge the gap — our guidance on loans and borrowing explains the options and your rights as a borrower. Whatever route you choose, keep clear records of how grant money is spent, as funders can ask for evidence and may reclaim funds that are not used as agreed.