Grants for UK Start-Ups & SMEs
Looking for government funding and need a simple guide to government grants? Funding Guru are experts in providing comprehensive guidance for UK start-ups and small businesses applying for government grants.
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How Can Funding Guru Help You to Get a Grant?
Funding Guru are experts in helping businesses secure government funding. We act as both an adviser and a lender, working with you to secure your government grant and saving you the hassle of applying yourself.
Government grants are enormously competitive and the current economic troubles mean free funding is getting harder to come by. It can also be confusing to know which grants you are eligible for.
We know which grants are available, which are suitable for your business and how to make the application process as painless as possible. We’ll talk you through whether you’re likely to get a grant and we can take care of the application for you.
If you don’t qualify for a government grant, there are still other alternative funding options available, which our advisors can guide you through. Contact Funding Guru today on 0333 006 9141 and we can talk through your options.
What is a government grant?
A government grant is typically a sum of money paid to your business that you do not have to repay. You also don’t have to give away a share in your business to get the funds.Grants are extremely competitive and tend to be very complicated – so having an expert to support your application goes a long way.
You could use the money you receive from a grant for a wide range of reasons – perhaps to buy new equipment, fund a marketing campaign or hire staff. However, most grants have strict conditions on how the money is spent.
There are hundreds of business grants available, with some available if you are in a specific sector or region. Depending on the grant, you may have to put up some of your own money or secure money from another private funding source (matched funding) to receive a grant.
Below we explain how to search for any government grants you may be eligible for, and the alternatives to government grants if there are none suitable.
We’ll also explain how Funding Guru can help you apply for government funding, as the process is tricky to navigate and it’s helpful to have someone with experience guide you through it.
How do I find government grants?
If you’re starting a new business, your first starting point should be to check out the government’s business finance support page. Here, you’ll currently find 150 different funding schemes available to UK start-ups, including 60 government business grant schemes.
These grants include:
- Free guidance for graduates of any UK university to start a business in Staffordshire.
- Advice, workshops and loans for start-ups trading less than two years in Norfolk, Suffolk and London.
- Capital grants to support expansion projects that create jobs in the Leeds City Region area.
- Workshops, mentoring and up to £5,000 for digital SMEs in Tees Valley.
There are different grant options for those outside of England. For Scotland, Business Gateway helps firms across Scotland and can help your business get funding through Scottish Enterprise, Highlands and Islands Enterprise, Skills Development Scotland or your local council. Business Wales has a wealth of guidance to apply for grants in Wales,
If you are based in Northern Ireland, the business support finder is a comprehensive database of financial assistance available to businesses.
Government Grant Application Process
When your business is applying for a government grant, you will need to demonstrate the below:
1. Meet the conditions of the grant
There’s no point applying for a grant if you don’t meet the requirements. You’ll waste time, and sometimes money.
2. Invest in Your Applications
You’ll need to be willing to invest some of your own money, or can secure private funding from elsewhere to match the funds from the grant.
3. Demonstrate How the Money Will Be Used
Government grants can be very specific in the uses for the funding they provide. You’ll need to explicitly show how you would use the funding.
4. Benefits of the Project to the Local Area or Wider Economy
Most government grants are aimed to improve a local area or provide a service to a community. If your business does these things - shout about it!
5. Detailed Business Plan in Place
As with any funding application, you’ll need to have a solid business plan in place to show the application assessors that they’re putting funding where it will make the most impact.
6. Your previous history and experience
Detail why your business should gain funding over someone else’s. What do you bring to the table which shows that you’re going to provide the most value for the funding?
How Do I Write a Business Grant Proposal?
That’s where Funding Guru comes in. We help you with the nuances of different government grant criteria and how you can best demonstrate that your business delivers on these requirements.
Once we have waded through the different grant options and selected one that is appropriate for your business, here are the steps we guide you through:
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Starting with a Punchy Executive Summary:
Executive summaries often appear at the start of an application - but we recommend writing this last (once you have the main points of your application fleshed out). Here you’re condensing why your business is the right fit for the funding -
Explaining How Much You Need & What the Funding Will Do:
You’ll need to clearly state the amount of funding you’re applying for, how you’ll spend the grant, and what that’s going to do for your business and the wider community. -
Communicating Your Strong Business Case:
This is where most start-ups go wrong. You’re not begging for funding, you’re showing why your business is a worthwhile investment. Show your innovation, impact and the clear numbers of how you can prove ROI. -
Clean-Cut Financials & What You’ll Deliver:
Include how much your business is going to need, and what amount the grant will cover. Show financial forecasts and how you’re the person for the job (with notes on your previous experience to make it a success).
If this looks like a lot – or you’re not sure how to communicate yourself in a way that will appeal to the grant decision-makers – Funding Guru are here to help.
Different types of Grants for Businesses in the UK
There are various grants available for start-ups, and below we outline these in detail.
Innovation grants
If you’re a UK-based business or research organisation, you may be able to compete for government-backed funding to research and develop a process, product or service, test your innovation ideas or collaborate with other organisations. These grants are delivered through Innovate UK, the UK’s innovation agency that supports businesses developing new ideas. There are currently grants available for robotics and automation projects, and for firms helping accelerate the UK towards a net zero automotive future.
Prince’s Trust
If you are aged 30 or under and need support growing a business, you could apply to the Prince’s Trust. The charity works with delivery partners across the UK to offer hundreds of free courses, grants and mentoring opportunities.
Local Enterprise Partnerships (LEPs)
There are 38 Local Enterprise Partnerships across England that aim to solve local economic challenges by linking local authorities and local private sector businesses. These LEP Growth Hubs have helped more than two million businesses navigate the cost of living challenges in the past year. If you’re looking for funding or guidance, contact your local growth hub.
The National Lottery Heritage Fund
If you’re a not-for-profit organisation, you could apply for the National Lottery Grants for Heritage. Grants of £3,000 to £5m are available for projects that connect people and communities to the national, regional and local heritage of the UK.
Cons of Government Grants
Obviously the main pro of government grants is the fact your business may receive free money that does not have to be repaid. But there are some cons to government grants:
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Time consuming:
The application process for government grants is extensive and can be confusing if you’re navigating it for the first time. -
Competitive:
Free money is hard to secure. There’s a low chance of you getting accepted for a grant. -
Low availability:
Grants are often given to businesses to solve a local need. There may be no applicable grants available in your local area -
You may have to cough up:
For many grants, businesses have to match the funds provided by the government. -
Proving the money is being used appropriately:
Grants often come with strings attached, and you will have to continually document to the grant provider that the funds are being used appropriately.
What’s the alternative to government grants?
If there is no government grant to support your business, or you think the application process is too time-consuming, the options are to consider equity finance or a start-up loan.
With equity finance, you raise money by selling shares in your business to an investor. The investor then gets a share or your profits and may have a say in how the business is run. At Funding Guru, we can help you raise equity finance through our network of experienced investors and entrepreneurs.
If you want full control of your business, then a start-up loan may be a better option. You’ll get a cash lump sum potentially within days, which you’ll typically repay within two years with interest.
At Funding Guru, we offer up to £100,000 to start-ups looking to grow and expand through a business loan. As well as giving you finance, we’ll also help you with your business plan and can offer guidance from mentors.
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Government Grants Frequently Asked Questions
Do you have to pay back a government grant?
Grants, by nature, are not repayable. That is the key difference between applying for a grant for your business and applying for a loan. Because of this, grants are very competitive and have specific requirements on how the money is spent.
Are grants taxable income to a business?
Grants are considered as taxable income for your business – so you’ll have to declare them on your annual tax return. This is something to keep in mind if you come into considerable amounts of grant funding as you don’t want to be caught out with a large tax bill that you’re unprepared for.
How much does the UK government give in grants?
Each year, there are millions of pounds up for grabs through various government grants. But each grant is specifically designed for a different purpose. That said, there is significant funding available for those in eco-friendly industries, technology and innovation. Navigating the different grants available is the key to finding the right funding for your business.
Are there free government grants for businesses in the UK?
Yes, there are many government-backed grants available that do not require repayment. These are designed to support businesses with specific aims such as job creation, innovation, exporting, or regional development. While they’re often competitive, they can be a great way to fund growth without taking on debt.
What grants are available for startups in the UK?
Startups in the UK can access funding from national schemes like Innovate UK, local enterprise partnerships (LEPs), and various regional or sector-specific programmes. These grants typically support research and development, product innovation, and business growth. Some are tailored for specific industries like tech, manufacturing, or sustainability.
What’s the difference between a startup grant and a business loan?
A grant is usually non-repayable and provided for a specific purpose, such as research, hiring staff, or expanding operations. A business loan, on the other hand, must be paid back – often with interest – and may require collateral. Grants are harder to secure, but they don’t burden your business with debt.
