The best small business grants up for grabs now
Looking for a cash injection to boost your business? Here are six small business grants available now, plus tips on writing a winning application.
What would your business do with an injection of £1000, £10,000 or even £100,000?
Across the UK, there are numerous grants for start-ups and SMBs on offer, meaning a free financial boost to establish or grow your business could be more than just a pipe dream.
These grants encompass both government funding and private sector grants, and are often specific to particular industries, age groups and locations.
Kerry Dwyer of Swoop Funding, a UK finance broker offering grant and loan advice to businesses, explains that grants are often awarded to businesses to support wider aims of improving society, promoting innovation or helping underserved communities reach their potential, and may be highly competitive.
“The advantage of winning a grant is that it does not have to be paid back."
But their benefit to the business itself will be immense. “The advantage of winning a grant is that it does not have to be paid back; it can be used as a nice piece of PR; and if you are looking to sell equity in your business, the fact you have won a grant shows that you have already impressed an awarding body,” she says.
Here are six grants available to small businesses now; if you’re looking for grants in your local area, search the LEP Network website.
Six great grants to know about
For young entrepreneurs aged 30 and under
The Prince’s Trust: Enterprise Programme
For people starting out with a business idea, The Prince’s Trust charity offers support and funding. To qualify for a grant, you need to be aged between 18 and 30 and take part in The Prince’s Trust Enterprise programme, which includes workshops, support for writing your business plan, and help with initial market research. Once you’ve developed your business plan, you can apply for a grant: average funding is approximately £1,000.
"Being able to ask questions and receive support was crucial for my business.”
One beneficiary, Scott Adams, 22, from Leicestershire, was awarded a grant of £500 to buy machinery for his car detailing business. He launched his business Premier Detailing in January 2022. Whilst on the programme, Scott received support to write a business plan and cashflow forecast, and was provided with a business mentor.
He says: “The guidance I received was fantastic. I had tried to research and write a business plan before I started on the Enterprise Programme, but I wasn't sure if what I was doing was right. Being able to talk to someone to ask questions and receive support was crucial for my business.”
Innovate UK Young Innovators Awards
Innovate UK, part of UK Research and Innovation (UKRI), offers funding for young people aged 18 to 30, from anywhere in the UK, with big environmental, societal, and economic business ambitions. You can enter with a business idea, or fully fledged business, in any sector. “There are no time limits on how long an existing business has been operational for before entering the Young Innovators competition,” explains Innovate UK.
Their grants will support up to 100 people for 12 months in the form of a £5,000 grant, a two-day a week living allowance, and one-to-one business mentoring support.
Applications must be made as a sole applicant, even if you are in business with a friend. “This does not mean that you can’t work with one or multiple co-founder/friend/business partner(s) on before, during, and after the programme developing your business idea, simply that only one of you can apply as sole applicant,” says Innovate UK.
They offer advice to applicants, too: “To fit the competition, your project must address a problem, be innovative, be significantly better than what is currently on offer including from existing businesses, meet the eligibility criteria, and have a realistic plan.”
Closing date for the Young Innovators Award: 27th July.
For any age:
Innovate UK Smart Grant
Innovate UK is looking for “game-changing, innovative and disruptive ideas that will lead to new products, processes or services” to award grants between £100,000 and £500,000 for projects between six and 18 months.
To qualify for a grant, Innovate UK says your business needs to be based on: “An idea that is significantly ahead of others in the field, set for rapid commercialisation, with clear potential to positively impact the UK’s position, productivity and competitiveness within the global economy.” If the technology is already available or used in another sector, you won’t be eligible for this funding.
Successful applications need to show a clear, evidence-based business plan and a team with skills and expertise to deliver significant economic impact, return on investment (ROI) and growth through commercialisation, as soon as possible after project completion.
Innovate UK won’t fund projects with links to any Russian entity, under current restrictions.
Closing date for Innovate UK Smart Grant: 27 July, 2022
For businesses looking to export
UK Tradeshow Programme
This government grant is for businesses that are looking to start exporting overseas, so they can attend international trade shows to gain essential market knowledge. Businesses can apply if they are actively investigating export opportunities and are wishing to grow exports in new markets. To be eligible, a business must have a turnover of between £85,000 and £250,000.
For UK businesses with a turnover between £250,000 and £5m, the UK Tradeshow Programme offers grants of between £2,000 and £4,000 to help with exhibition or attendance costs at overseas trade shows and conferences. Winners will also receive training on how to successfully exhibit at trade shows in general, and the specific show they are interested in.
The Tradeshow Programme cautions that you should not commit to attending the event before applying for support.
For businesses with a positive social impact
Grow it Awards
Aimed at entrepreneurs who are hoping to solve a social issue, UnLtd offers up to £15,000 for small businesses that have been established for over a year, and up to £5,000 for those that are still in planning stage or have been running less than a year. Funding is accompanied by one-to-one coaching and mentoring. Grants are awarded every quarter, and to be eligible, your business needs to have the potential to be financially sustainable or have growth prospects with support. In your application you need to demonstrate a clear need for your idea or social business, which must be clearly driven by its social purpose. It also needs to illustrate why you need financial and non-financial support from UnLtd to make it a success.
Business Boost Grant
Every year, Insurance company Simply Business offers a Business Boost grant of up to £25,000 to a business with innovation and a positive social impact at its heart. Previous winners include a sustainable textile label specialising in UK-made baby wraps and slings, Rowan Bay, and Brighton-based diversity and inclusion consultancy business Watch This Sp_ce.
6 secrets to securing a grant
What to know before you apply for funding
1 Plan ahead
Grant applications often end up taking much longer than anticipated, so leave plenty of time to eliminate last-minute panic, and to ensure your best chance for success. “Decisions are often made before the closing date advertised, so put in your application sooner rather than later,” says Dwyer.
“Decisions are often made before the closing date, so put in your application sooner rather than later.”
2 Check the fine print
Check eligibility requirements carefully to avoid investing effort on a grant application that cannot be won. Also be aware that it’s common for grants to require matched funding from elsewhere. So, for example, an award of £10,000 might require £10,000 from another source, whether that’s your own savings, equity or borrowing.
3 Save your responses
Planning on applying for a few grants? Make a copy of each grant application so you can cut, paste and edit your answers and use them when making future applications.
4 Be specific in your application
“Know how you’ll spend the money,” recommends Dwyer. “Be specific, explain clearly why you qualify for the grant, show how you will put the [funding] to use and show how receiving it will impact others.”
5 Be realistic
Competition for grants can be fierce, so don’t factor grant funding into your financial forecasting until you’ve be awarded the cash.
6 Remember reporting
Grants can come with plenty of strings, including requirements to report back regularly on how the money is being spent. Ensure you factor this into your planning and don’t apply for grants that require onerous reporting or challenging conditions relative to the amount of money being awarded.
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