5 of The Best Grants for Small Businesses

In the UK, there are many small business grants designed to support your SME in boosting its growth, developing its products, and more. Navigating the maze of options can be daunting, but the financial benefits are well worth the effort. To help you, here's our guide to five of the best small business grants available.

What Are Small Business Grants?

Small business grants are sums of money awarded to SMEs (small and midsize enterprises) to support their growth, development, and initiatives. These grants can be issued by government bodies, charities, or corporations. They often target specific industries, regions, or demographics to stimulate economic development or encourage expansion in targeted sectors.

Unlike loans, grants do not require repayment, making them an attractive funding option for eligible businesses seeking to minimise financial risk while expanding or innovating.

5 of The Best Small Business Grants

1. Seed Enterprise Investment Scheme (SEIS)

Seed Enterprise Investment Scheme or SEIS is a UK government initiative designed to help small, early-stage companies raise equity finance by offering tax reliefs to individual investors who purchase new shares in those companies. This scheme can provide SMEs up to £250,000 (gross limit of £350,000).

There are several criteria for UK businesses to be eligible for SEIS, including being involved in new qualifying trade, having fewer than 25 employees and less than £350,000 in gross assets.

2. Innovate UK

Innovate UK offers a range of grants for businesses developing new products, processes or services or improving existing ones through research and development. This activity can cover anything from feasibility studies to collaborative research, both domestically and internationally, providing a substantial boost for innovation-driven enterprises.

Your business can apply for Innovate UK's funding through a competitive process. The organisation runs many different 'competitions', each with its own criteria and scope requirements.

3. The Prince's Trust Enterprise Programme

The Prince's Trust Enterprise Programme supports young entrepreneurs aged 18-30 who are unemployed or working fewer than 16 hours a week. It offers grants of up to £5,000, as well as mentoring, and support to start and grow a business. The Prince's Trust is an excellent resource for young business owners looking to make a mark in their respective industries.

4. The National Lottery Heritage Fund

For businesses focused on heritage-related projects, the National Lottery Heritage Fund is one of the most versatile, offering grants ranging from £10,000 to £250,000. The fund prioritises projects that preserve heritage in the UK for future generations while ensuring community benefits.

Your heritage project could encompass historic buildings or environments, nature and habitats, or cultures and traditions. However, it needs to adhere to the funds' four investment principles: saving heritage, protecting the environment, inclusion, access and participation, and organisational sustainability.

5. R&D Tax Credits

While not a grant in the traditional sense, R&D Tax Credits are a government incentive designed to reward UK companies for investing in innovation. These are available to businesses of all sizes that work on driving advances or overcoming challenges in their scientific or technological field. They can either reduce a company's tax bill or provide a cash sum as part of the corporation tax return. This scheme can significantly reduce the financial burden of research and development.

Navigating the Application Process

The process of applying for grants can be competitive and demanding. It often involves providing detailed business plans and financial forecasts and demonstrating the potential impact of the project or innovation. Furthermore, your business should be prepared to match some of the grant funding, as many grants are not 100% funded.

If you are looking to apply for a small business grant, thorough preparation and a strong understanding of the specific grant requirements are crucial. Engaging with the grant providers directly to gain full insights into the application process, deadlines, and key criteria can significantly enhance your chances of success.

These grants represent just a few options available to small businesses in the UK. By leveraging one or more of these opportunities, your business can gain financial support that could be crucial in scaling operations or bringing new products and services to market.

If you have any questions or need further support, Keith Graham offers a selection of business start-up services that can help your small business grow successfully. Get in touch with our knowledgeable team today and we'll ensure you're equipped with the technical understanding necessary when navigating the modern business landscape.