4 Min. Read

How to Get Small Business Government Grants in the UK

March 22, 2024

If you’re looking to secure funding to start a small business, it’s likely that you’re considering business loans. This is the normal procedure, of course. However, it’s not the only procedure you can follow. In addition to trying to secure loan money, you can also pursue grant money! There are many business grants available, some that only require a grant application! If you want to start a small business off on the right food, keep reading to learn about small business government grants.

Here’s What We’ll Cover:

Business Loans Vs Business Grants: What’s the Difference?

Government Grants Available for Small Businesses

Finding Specific Government Grants

Key Takeaways

Business Loans Vs Business Grants: What’s the Difference?

A business loan is the typical route that people follow when starting a business. Business loans require repayment, often with interest. They also have to be paid back within a certain amount of time. Small business grant funding is different, though. Business grant programs don’t require that the money rewarded is paid back. As such, they’re often preferred over loans when a business meets the eligibility requirements.

Often, small business grant awards require that their investment be matched. This means that if the grant providers offer a £10,000 grant that the grant recipients must have £10,000 in funding themselves. Beyond that, however, grants will have different eligibility requirements.

Government Grants Available for Small Businesses

If you’re in the UK and you’re looking for government initiatives, these should be on your list for review.

The New Enterprise Allowance

The New Enterprise Allowance is a program that provides mentorship and an allowance to start a new business. It also provides the allowance for businesses that are developing. There are some requirements that have to be met before receiving funds, though.

Eligible applicants have to be over 18
They must be receiving Universal Credit, Job Seeker’s Allowance or Employment and Support Allowance (or have a partner who is)
They must be a lone parent, sick or disabled and on Income Support
Business plans are presented to mentors for approval before receiving funds

After meeting all of the requirements and going through the application process, applicants may receive £1,274 a week. The grant lasts for 26 weeks, as well.

Apprenticeship Grants

Financial assistance is available to businesses that take on apprentices. HM Revenue and Customs (HMRC) authority offer £1,000 to businesses that offer apprenticeships. The people taking on the apprenticeship must meet the following criteria:

They must be age 16 to 18
They must be under the age of 25 and have been in local authority career have an education, health and care plan

At this point in time, they’re also offering a £3,000 bonus for new apprentices that started between 1 April 2021 and 30 September 2021. Eligible businesses can also seek training and assessment funding.

Training and assessment funding can be sought by businesses that have an annual wage bill under £3million. This allows them to forgo the Apprenticeship Levy. It also grants you access to the application materials for training and assessment funding. This means that the assessments are mostly paid for by government resources. They’ll pay 95%, and the business only has to pay 5%.

Coronavirus Funding

Thanks to the coronavirus pandemic many business owners have been negatively impacted. As such, HMRC has developed more than one funding opportunity for business owners. If your business has been affected by the COVID-19 pandemic, you may be eligible for the COVID-19 relief fund. Here are a few of the programs offered currently:

Coronavirus Job Retention Scheme: A grant program that helps you pay your employees
Statutory Sick Pay Scheme: A scheme that offers back Statutory Sick Pay for employees affected by COVID-19
Coronavirus Restart Grant: If your business shut down due to the COVID-19 pandemic you may be eligible for this grant

Finding Specific Government Grants

Small business grants can be found in the UK by using the UK.GOV website. They have a specific page dedicated to finding finance and support for your business. Many grants are available based on business initiatives. Some of these include rural businesses, low-income communities, and specific industries. The UK.GOV website is an excellent resource for securing grant funding.

Key Takeaways

Starting a business can be difficult, especially when you’re trying to secure funding to start it. Loans can be intimidating, especially when you consider that they need to be paid back. If you’re looking for an alternative to a business loan, consider applying for business grants! They don’t have to be paid back, and many people are eligible for them. If you’re looking for business advice and information, check out our resource hub! We have plenty of helpful articles available.