Top UK government grants available for small businesses
If you need to expand your small business, train your staff or revitalize business within your local area, you don't need to burden your pocket with the expenses.
The UK government has made it possible for small businesses to access grants to run these extra business expenses.
What is a small business grant?
Small business grants are sums of money that are given to small businesses to carry out a specific project or achieve a set purpose, like training of employees, expansion of business, or even purchase of new equipment.
According to an article by Nerdwallet, small business grants come from supranational, national, regional, and local sources, and are available for a range of industries. Small business grants are usually non repayable.
It is important to note that each small business grants are very competitive and they have different criteria, protocols and guidelines for application and approval.
In this article, I'll highlight the Top UK Government Grants Available for Small Businesses, their eligibility requirements and features.
Before then, let's quickly run through what you must know and do before you apply for a small business grant.
How to apply for a small business grant.
Each small business grant has it own application process, however, here's a general guide to help you with your small business grant application
- Do your research
Find out exactly what the grant covers, what the eligibility requirements are and tailor your application towards it, it will improve your chance of getting the grant
- Apply as early as possible
The application for some small business grants doesn't last long, when they get the number of applications that is required the registration portal might shut down, so do well to apply as soon as the application portal opens
- Be clear
Keep your proposal as simple and clear as possible, don't bombard it with complicated terms and technical jargons.
- Be specific
Be specific about what you need the money for. Start by describing your business, what it does and how the grant will be of help.
- Be thorough
Provide a detailed business plan, and every other details required during the application process, this will help your business to be considered faster for the grant.
Top UK government grants available for small business owners.
The Kings Trust enterprise programme.
This is one of the oldest government grants available in the UK, it was founded in 1976 by King Charles III (then Prince of Wales) to help young people get their lives on track, so in the modern day UK this grant is dedicated to encourage young people to start their businesses.
The grant usually includes between £175 - £250 to support you with;
- course fees to A level standard
- equipment or tools required for your job or training
- business or job license fees.
To be eligible for this grant, you must be;
- a UK resident
- between 16-30 years old
- unemployed or have less than 16 hours work week
- studying less than 14 hours a week
You can begin your application process here before then, you need to
- Get in touch with their customer care
- Attend their information session
- Make an application
If your application was successful, they’ll confirm your enrollment and invite you to their Business Essentials workshop. If not, you can reach out to their customer support and they'll explain why and also recommend other resources and organization for you.
Flexible Workforce Development Fund (FWDF)
The Flexible Workforce Development Fund supports employers in training employees in their organizations by providing funds for these training programmes
It is only available to SMEs in Scotland and UK Apprenticeship Levy paying employers, FWDF can help improve, teach and support your workforce to deliver better services.
These training programmes are usually delivered in partnership with The Open University in Scotland or an independent training provider
Scottish Funding Council administers the scheme on behalf of colleges and Open University of Scotland with total available funds of about £5,000, while Skills Development Scotland administers the scheme on behalf of independent training providers with total available funds of £2 million.
UK Trade show programme
The UK trade show programme is an SME grant in the UK that was created by the UK government to support businesses to start exporting through trade show exhibitions.
The grant is usually between £2,000 to £4,000 and it helps to cover the cost of Exhibition space, Stand costs, Promotional materials and training on the best ways to exhibit your products or services at a trade show.
To be eligible for the UK Trade Show Programme, you need to
- Attend first trade show or examine new markets
- constantly learn about export opportunities
- have a turnover that is between £85,000 and £25,000
- Apply for the grant, then commit to attendance.
If you've already exported and visited trade shows, you may also apply for the UK Trade Show Programme if you have a turnover that is between £250,000 and £1 million.
PAPI Grant
Product And Process Innovation (PAPI) grant is one of UK’s business grants available to small and medium enterprises around North Yorkshire
The Product And Process Innovation grants offers a collection of 40% grants to businesses that are looking to innovate. The funds is usually between £8,000 to £20,000 for businesses that are eligible.
To be eligible, you must;
- be within North Yorkshire
- be launching a new product or service
- have a capital expenditure costs of over £20,000
- create at least one new job within your business.
UK shared prosperity fund.
According to Local.gov.uk, The UK Shared Prosperity Fund (UKSPF) is the government’s domestic replacement for the European Structural and Investment Programme (ESIF).
It provides local authorities funding for communities, places, businesses, people and skills.
The main objective of the fund is to encourage the people to be more proud of where they live, encourage local businesses and increase life chances across the UK.
From inception, the UK Government has allocated £2.6 billion for this grant for over two years up until 2025. Every season at least, £1million is given to every lead authority.
The lead authorities include combined authorities, district, and unitary authorities and they all have the responsibility of development and delivery of the UKSPF within their local area.
Some of their responsibilities include, deciding level of interference, processing applications, and making sure that grants are delivered to the right bodies.
So to access this grant, you need to get in touch with your local authority, apply and wait for it to be approved.
West Midlands SME Grant
The West Midlands SME Grant is a government grant for SMEs based in the West Midlands Region. The amount allocated for the grant depends on if the business is just starting up or if it's an already existing one.
Start-up SMEs based in the West Midlands Region can apply for a grant of £1,000 to £7,500, while already existing SMEs can apply for grants of £1,000 to £100,000.
Typically, West Midlands SME Grant expects SMEs to apply for funds between £10,000 to £20,000, and not an amount as high as £100,000 this is to ensure that the limited WMGP budget is given to as many businesses as possible, however in exceptional cases, grants of £100,000 can be awarded to few businesses.
The WMGP is only eligible for;
- Birmingham, Solihull MBC and Shropshire based businesses, as a capital only grant programme.
- Cannock Chase based businesses, both as capital and revenue expenditure.
UnLtd Social Enterprise Funding
Unltd Social Enterprise Funding is a grant for entrepreneurs that run social businesses.
A social business is a venture that has a social mission at it center. It's a business that is not just focused on making profit, but on being purposeful and impactful. Because of these, Unltd Social Enterprise Funding doesn't just provide fund, it also provides support to help your social business to start up and grow
For new entrepreneurs or start up SMEs you can apply for a grant of up to £8,000
To be eligible as a start up SMEs, you must;
- be committed to creating social impact in a financially sustainable way.
- be at an early stage or have started to make a difference to people's lives.
- not yet be incorporated or if you already are, it should not be more than four years
- have been selling goods and services for less than a year
For already existing SMEs that wants to scale, you can apply for a grant of up to £18,000.
To be eligible as an already existing SMEs, you must;
- be the founder of a financially sustainable social venture that is making a positive difference to people’s lives.
- have evidence of your social impact and ambitions to build on it.
- be incorporated within four years
- have been selling goods and services between 1-4 years.
As a small business owner in the UK, when you find any grant that interest you and whose eligibility requirements suits your business, it's important for you to apply for the grant as soon as possible because the registration portal for most grants close immediately the required number of application is received.
It is important to note that, if the application for the grant that you're eligible for or interested in is not opened, you can follow the organizers of the grant on social media and subscribe to their email list, so that you'll be the first to know when the application opens.
