Grants for small businesses – and how to apply

Whether you’re a small business owner or an aspiring entrepreneur, a cash injection is never a bad thing.

Raising finance is a crucial stage in starting a business, so a grant could be the very thing that kickstarts or revives your venture – helping you purchase the tools, equipment or services you need for operations, or simply as the crucial backing to achieve your business goals.

While starting your own business might be a tough gig right now, especially given inflation, the cost-of-living crisis and economic uncertainty, the number of new businesses has increased significantly over the years, with approximately 5.5 million UK businesses recorded as of January 2024.

Plus, nowadays there are many ways to get funding for your business. One of the most popular routes is business grants, 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.

Types of business grants

There are several types of business grants available, including:

• Direct grants: these provide the cash sum directly to the business, though it may have to be allocated to a specific project or initiative.
• Resource and training grants: offers resources such as training and mentorship, to help support a business’s growth and development.
• Green grants: a sum of money given to a business to support the implementation of environmentally friendly practices and reducing carbon footprint.
• Soft loans: not technically a grant as it needs to be paid back, but are known to offer more generous repayment terms compared to traditional banks.

Business grants for women

For years, the gender funding gap has created barriers for women seeking to access finance for their business ventures. In 2024, it was reported that women-led companies received just 5.8% of all investments, while a significant proportion of investment went to male-founded companies, including 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 Fund

Female Founders Fund is a seed-stage venture fund that invests exclusively in women founders and accepts applications all year round. To apply, simply fill out the application form and submit your business pitch.

Astia

Running for twenty-five years, Astia is a venture capital firm that invests in women-led businesses – accepting applications all year round for companies that operate in high-growth industries. You can easily apply for consideration through Astia’s online portal.

Innovate UK (Women TechEU Award)

Innovate UK offers several funding opportunities through several different programmes. For women-led businesses in the tech industry, applications are now open for the Women TechEU Award, in which 160 winners will receive €75,000 (around £62,000), as well as a personalised development programme. Applications are open until March 17th, 2025.

Anita Borg Institute

While it isn’t technically a grant organisation, the Anita Borg Institute celebrates female founders in the tech industry. There are three main programmes businesses can apply for – the Abie Awards, Pass It On Awards and PitcHER. Winners of these awards can win up to $50,000 (around £40,000) in funding.

Applications for 2025 are yet to be announced, but you can find out more about the awards programmes here.

Cartier Women’s Initiative

The Cartier Women’s Initiative supports female-founded organisations through several business grants. Its main award programmes include the Impact Awards, Regional Awards and the Science & Technology Pioneer Award. Applications will be open from April 18 to June 24, but 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. 

Business grants 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 Enterprise Nation, 54% of young adults aged between 18 and 24 were considering becoming entrepreneurs in 2024, equalling two million individuals with similar ambitions. 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 25 are now open until February 27th. 

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 £10,000 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.

Business grants 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. You can apply by creating an UnLtd account and completing an application form from there.

UnLtd Scaling Up Award

On the flip side, 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 £30,000 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.

Business grants 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.

Black Seed Ventures

With a mission to address the funding gap for black founders in the UK, Black Seed Ventures offers seed funding of up to £400,000 exclusively for black-owned businesses. As the winner of the Diversity, Inclusion and Equity (DEI) Award for the Startups 100 for 2025 Index, Black Seed specialises in supporting early-stage Black entrepreneurs with the funding they need to launch their businesses. You can submit your pitch through the Black Seed website.

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 its 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. You can submit your application through BFN’s online portal.

Business grants for 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. Applications are open until March 31.
• 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. Round 25 of applications are open until February 27. 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 you can apply for.
• Better Business Finance (BBF): helps businesses find suitable financing by offering guidance on loans, grants and alternative funding solutions. Businesses can also apply for business finance here.

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.
• Special Regeneration Fund: businesses based in Bridgend can apply for grants that cover 40% of eligible capital project costs. Businesses can receive up to £25,000, excluding value-added tax (VAT). Find out how to apply 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 can’t access other sources of funding. It provides up to 50% of eligible project costs to a maximum of £500. Find out how to apply here.
• Caerphilly Enterprise Fund: supports Caerphilly-based sole traders, partnerships, limited companies, limited liability partnerships and community groups. Offers a maximum grant of £2,000 at an intervention rate of 50%. Find out how to apply here.
• Newport Business Grants: offers grants of up to £2,500 towards 50% of net costs for businesses outside the city centre Business Improvement District (BID) area and up to £5,000 for those based in the city centre. 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 £100,000 for existing businesses, and up to £15,000 for startups. 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 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.

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.

It’s important that you take the time to research to find the grant that best suits 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

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 February 2025.