Looking for ways to boost your business finances without taking on more debt? Business grants could be the solution.
Unlike loans, business grants don’t need to be paid back, making them an attractive option for businesses looking to invest in growth, innovation or recovery. So what exactly are they, who’s eligible, and how can you apply?
What is a business grant?
A business grant is a sum of money awarded by a government, charity or organisation to help businesses fund specific activities or projects. Unlike a loan, you don’t have to repay it, as long as you meet the conditions of the grant.
Grants are often aimed at helping businesses:
- Launch new products or services
- Expand operations
- Invest in training or upskilling
- Improve sustainability or innovation
- Recover from economic challenges.
There’s usually an application process, and not all grants are cash-in-hand. Some also cover specific costs or are paid as reimbursements after the money has been spent.
What types of business grants are available?
Grants come in many forms. Some are open to all businesses, while others are targeted to specific sectors, locations or types of projects.
Here are the main types of business grants you might come across:
1. Start-up grants
Designed for new businesses, these grants can help with setup costs like equipment, marketing, or early-stage R&D.
2. Innovation and R&D grants
If you’re developing a new product, service or process, there are several grants to support innovation. These often come from organisations like Innovate UK.
3. Regional or local grants
Many local councils offer grants to support businesses in their area, particularly those that create jobs or boost the local economy. These are more frequently found in areas deemed by the government to be ‘economically’ or ‘socially’ struggling. For example, high unemployment, poor social mobility, and a high level of poverty.
4. Green and sustainability grants
These support businesses investing in energy efficiency, low-carbon technology or other eco-friendly initiatives.
5. Training and skills grants
Available for businesses looking to upskill their teams or invest in apprenticeships and employee development.
While some grants offer small sums (e.g. £1,000–£5,000), others can go up to tens or even hundreds of thousands, especially for research and development projects. So it’s always worth a look at all your options to see what the best grant for your needs is.
Who can apply for a business grant?
Each grant has its own eligibility criteria, so it’s essential to always read the fine print! For example, you may need to meet requirements related to:
- Business size (e.g. SME only)
- Sector or industry
- Location
- Trading history or turnover
- Project goals (e.g. job creation, innovation, green investment)
Many grants also require matched funding, meaning you’ll need to invest a certain amount of your own money, too.
What’s the catch?
While business grants can be a great funding option, they come with a few caveats:
- The competition is high, so you’ll need a strong application and a clear business case.
- Applications take time – so be prepared to fill out forms, provide documents, and meet deadlines.
- You need to stick to the rules – most grants come with reporting requirements and conditions on how the money is used.
In short, a grant isn’t “free money”, but it can be a smart, low-risk way to fund business activity if you meet the criteria.
Where can I find business grants?
Here are a few good places to start your search:
- GOV.UK Business Finance Support Finder
- Your local council or Growth Hub
- The British Business Bank
- Innovate UK (for R&D and innovation grants)
- Local enterprise partnerships (LEPs)
Want to explore grant funding?
Grants can be a brilliant way to inject cash into your business without increasing your debt. Whether you’re just starting, planning to scale, or investing in something new, the right grant could give you the boost you need.
Need help? Contact us today, and we can help you identify your options and choose the best grant for your needs..
