What New Business Grants are Available?
There is an ever-evolving selection of new business grants available to business owners across the UK. To find a grant to suit your business, you can find a complete list using the government’s business finance finder and regional funding portals.
Some of the most common types of small business funding and grants include the following.
The new enterprise allowance is a government grant and scheme to support new entrepreneurs. The scheme offers financial support as well as mentoring, a weekly allowance and a business loan to keep finances covered and get your business idea off the ground.
This type of government business grant is available to those 18 years and over, and who either receive Universal Credit, Job Seeker’s Allowance or the Employment and Support Allowance, or be a lone parent or on Income Support for an illness or disability.
With this grant, entrepreneurs can expect to receive an allowance of up to £1,274 for 26 weeks once the business plan has been approved by a mentor.
Designed for business ideas and heritage projects from landscaping design to cultural traditions, the National Lottery Heritage Fund offers a range of grants to suit all types of heritage projects and business plans.
Grants under this scheme can range from £3,000 up to £1 million and above. Visit their website for the full list of grants offered by the National Lottery Heritage Fund.
Taking on an apprentice as a business owner can also make you eligible for a government business grant.
To be eligible for apprentice grants your business will need to have annual bills of fewer than £3 million per year, meaning you are not required to pay the national apprenticeship levy. Under this grant, the government will pay 95% towards the cost of training and assessing your apprentice, you will be required to pay the remaining 5% contribution.
Under this scheme businesses can also claim incentive payments for new apprentices who join your company. This can be up to £3,000 per apprentice who has started their employment with you before 1st April and 30th September.
There are 38 regional ‘Growth Hubs’ across England offering supporting, funding and professional guidance for new business owners across their region. Depending on your area, grants and support can vary widely.
To find a local government business grant to suit your new venture, search for support on the LEP Network website.
Part of UK Research and Innovation (UKRI), the Innovate UK grant is designed to support innovative ideas and business growth through grants and loans.
The list of Innovative UK grants changes regularly and eligibility criteria will differ with each new opportunity. There are some instances where you may only be able to apply to an opportunity 1 time, even if you have been previously unsuccessful and applications reopen for a second cycle.
View the full and updated list of Innovate UK Grant opportunities on the government’s website.
Not all grants are in the form of hard cash. Another government backed business grant is the research and development tax relief, offering periods of discounted corporation tax to businesses who are working on projects for the advancement of science and technology.
This government scheme is broken down into two types of relief, SME R&D relief and Research and Development Expenditure Credit.
To qualify for SME R&D relief, your organisation must have fewer than 500 staff and a turnover of less than €100 million. This scheme allows companies to deduct 230% off of their qualifying costs from yearly profit and claim tax credit up to 14.5% of any losses made.
The Research and Development Expenditure Credit can be claimed by SMEs and larger corporations. Offering a tax credit of 13% of qualifying R&D expenditure.