The best small business grants 2024/2025

*Updated November 6, 2024.

It’s surprising how unexpected costs can crop up when you’re running a small business, especially when you’re just starting out. But no matter what stage your business is at, it’s likely that you’ll need to take out a business loan or some form of finance option at some point – whether to help with cash flow, update old equipment, or fund an expansion.

But before you compare business loans it’s worth looking at what grants are available.

30-second summary

• A business loan is an amount you borrow and pay back monthly with interest added. A grant is money given to you that you don’t need to pay back.
• There are many grants available if your business meets certain conditions. E.g., Direct grants, resource, and training grants.
• Some businesses can also qualify for tax relief government schemes including NI relief, business rates relief, employment allowance and corporation tax relief.
• Certain business types are eligible for grants including startups, young entrepreneurs, businesses with apprentices and female founders.
• If you qualify for a grant, to make sure you get it – apply as soon as you can, hire a consultant if needed and have evidence of your eligibility on hand to show why you need the funding.
• If you don’t qualify for any grants, you can apply for a business loan. Bionic can help advise the best route to take if you’re considering this option.

What’s the difference between a loan and a grant?

When you take out a loan, you need to repay the amount borrowed plus interest in a set number of repayments, as agreed with the lender. However, if you get money through a grant, then you don’t need to pay it back.

Most loans are offered by private lenders that add interest to the amount you borrow as a charge for their service. The government does offer loans, such as startup loans, which are available to help people start a new business or grow an existing one.

Grants are usually publicly funded schemes awarded to businesses by the government or a charitable organisation or trust. They come with certain conditions attached, as they’re designed to help those who need the money most or promote a public cause. The Prince’s Trust Enterprise program, for example, offers development awards of up to £500 to help younger people access training courses, cover job licence fees, buy tools, equipment or uniforms for a job or qualification, and more.

What types of business grants are available?

A range of business grants are available in the UK, each for different purposes. This includes:  

• Direct grants - Direct grants are those that involve cash being given directly to a business to help fund a specific project. These schemes usually involve fund matching, which means any money you raise to pay for the project will be matched by the same amount of grant funding - essentially, you need to put up half of the money needed. In most cases, there will also be conditions about how the money can be spent. This is to make sure you’re acting in good faith and spending the money on the project it was raised for. 
• Resource and training grants - If you want to invest in skills or need access to resources and expertise to get a project off the ground, then the following resource and training grants are a great option. 

A list of small business grants for 2024/2025

1. Innovate UK Smart Grants - Innovate UK Smart Grants are designed to encourage innovation. This grant funds projects that develop new products, services, or processes. Grants range from £25,000 to £2 million and can be accessed by UK-registered companies in any industry focused on innovation that contributes to the economy or solves global challenges. You can apply for funding directly on Innovate UK’s website. 
2. Gigabit Broadband Voucher Scheme (GBVS): This grant is designed for small businesses needing faster, more reliable internet. It covers partial costs to upgrade to gigabit-capable broadband, benefiting companies in rural and underserved areas where connectivity is crucial. 
3. Research and Development (R&D) Grants: The UK government is committing over £20 billion to R&D and high-growth sectors, especially in engineering, biotechnology, and life sciences. SMEs in these industries will have increased access to funding for innovation and partnerships, potentially benefiting from government support for new product development and market expansion. 
4. Regional Development Funds: Several regional funding programs offer tailored grants across the UK. For example, the Northern Powerhouse Investment Fund and Midlands Engine Investment Fund provide support for growth, development, and job creation in those regions. Each fund has its specific eligibility criteria based on location and business type. 
5. Woodland Creation Planning Grant (WCPG): This grant supports businesses focused on sustainability and the environment, particularly for projects involving forestry. Funds up to £30,000 are available to create compliant woodland designs, encouraging environmentally conscious business practices. 
6. Heritage Enterprise (HE) - UK - Funding to help restore neglected historic buildings and sites and unlock their economic potential. Businesses with buildings in need of restoration can apply. 
7. Flexible AI Upskilling Fund pilot - The Flexible AI Upskilling Fund pilot scheme will support small businesses in the professional services sector by match-funding AI skills training for their employees. 
8. Apprenticeship and Training Grants: These grants help businesses invest in workforce development, covering costs related to training and assessment for apprentices. Some schemes offer funding to businesses that hire apprentices or upskill their employees. 
9. Local Business Support – It's worth checking to see if your local authority offers business support grants to fund training workshops, expert advice, business accelerators, and other forms of training.  
10. Business Support Networks - Sometimes other business owners – or former business owners – are the best people to turn to for expert support. Business support networks help business owners get peer-to-peer advice. This can be especially useful if your business is involved in new technologies or has certain best-practice initiatives. 
11. Business support helplines - You can get advice and financial help for your business from a range of government-backed schemes. This includes things like help with tax, exporting, and writing a business plan. Visit the government site. 
12. Bionic Business Insurance Prize Draw – This is not a grant as much, but could save your business money! Win up to £5,000 for your business insurance policy. Buy a policy with us to be automatically entered into a draw every quarter and to win your policy for a year. Enter until May 2025. Read the terms and conditions. 

What about tax relief?

Despite what the adverts say, tax can be taxing when you’re running a business. That’s why there are a number of government schemes designed to help cut the tax burden on small businesses.

• National Insurance relief – If you have any employees, you might be able to claim National Insurance relief of up to £5,000. However, this is the total allowable relief for each business, not for each employee, and you won’t be eligible if you run a limited company that has only one company director and no other employees. 
• Business rates relief – If your business occupies one property with a rateable value of less than £15,000, then you might be eligible for business rates relief. In 2025, the UK government will provide eligible, occupied, retail, hospitality, and leisure properties with a 40% relief, up to a cash cap limit of £110,000 per business. Alcohol duty for draught products will also be reduced, providing relief for pubs and small brewers, promoting economic resilience within these industries.  
• Employment Allowance - This enables you to reduce the national insurance contributions you pay for your staff by up to £5,000 per year. In 2025, the Employment Allowance will rise to £10,500, reducing National Insurance costs for over 865,000 small businesses. This relief is intended to reduce costs for the micro businesses across the UK.  
• Corporation Tax relief – The current main rate of Corporation Tax is 25% on company profits, as of April 2023. This was previously 19%. But you may be able to claim 'Marginal Relief' if your business has taxable profits of less than £50,000, meaning you could still pay the 19% rate (small profit rate). Marginal Relief works in gradual increases between the small profit rate and the main rate of 25%. So, if you have taxable profits between £50,000 and £250,000 you could be eligible.

Check the government website for information on allowances and reliefs.

Who is eligible for grants? (Offer types of grants for each group)

In some cases, the type of business grants you’re eligible for depends on your current circumstances.

Grants for startups

Not to be confused with Startup loans, which are government-backed unsecured loans that can be used to help start a new enterprise or grow an existing one, startup grants are available for a range of business needs. 

• The Prince’s Trust Enterprise Program: Targeting young entrepreneurs aged 18-30, this program offers grants alongside mentorship, especially for those starting new ventures. It's aimed at providing foundational support to overcome financial and operational barriers. 
• Seed Enterprise Investment Scheme (SEIS): Although a tax relief program, SEIS is a valuable resource for startups wanting investment. It provides tax relief to investors in early-stage businesses, making it easier for startups to attract investment. Businesses can raise up to £150,000 under SEIS, which is great for potential investors because of the tax advantages. 
• Social Enterprise Funding: For startups focused on social impact, UnLtd offers funding and support for social entrepreneurs addressing community issues. Their "Starting Up" awards offer up to £5,000, while the "Scaling Up" awards provide higher funds. These grants are suitable for entrepreneurs creating positive social or environmental change. 

Regional grants may also be available. For more information, check the 'finance and support for your business' page on the government's website. 

Grants for young people

As well as The Prince’s Trust, there are a number of other grants available to people aged 18 to 30 who are looking to start their own business, including: 

• UnLtd – Provides funding and support for social entrepreneurs with social change at the heart of everything they do. 
• Shell LiveWIRE - Provides access to knowledge, skills, networks and resources to help young people realise their business goals, create jobs, provide sustainable income, and drive innovation. 
• ARFOR Programme Support Fund - Grants of £5,000 to £75,000 are available, to fund up to 70 per cent of total project costs in Welsh speaking communities. All projects must be completed by December 31, 2024. 

Grants for businesses with apprentices

You can get funding from the government to pay for apprenticeship training and assessment or as an incentive payment for other costs. If your business pays the Apprenticeship Levy, you’ll get a grant to spend on training and assessing your apprentices and the government will add 10% to this.

If your business doesn’t pay the levy, you’ll pay 5% towards the cost of training and assessing your apprentice and the government will pay the remaining 95%, up to a funding maximum. This money will be paid directly to the training provider, and you’ll need to arrange how and when to pay your 5% directly to them.

Grants for women

With male-owned businesses more likely to attract funding, organisations are increasingly looking to fund women in business and give them a more even opportunity to succeed.

You can check out the business grants available specifically to women in our guide to grants for female entrepreneurs.

Grants by region 

You might be able to get a grant, or some support based on where your business is based. Many counties have their own initiatives to help the area, whether that’s creating more jobs or assisting graduates. Often, there are pools of money put towards these initiatives that you could qualify for.   

• Energy Efficiency Grants for East Sussex - East Sussex businesses focused on reducing energy use can access grants between £200 and £1,000, covering up to 40% of project costs. This funding supports energy-saving measures, like improved lighting, heating, and other energy-efficient upgrades, to lower overall energy expenses. 
• Birmingham Commercial Vehicle Grant - For small businesses in Birmingham, this grant assists businesses in upgrading their vehicles to meet Clean Air Zone (CAZ) standards. The grant provides up to £180,000 per applicant, with a maximum of £15,000 per heavy goods vehicle or £4,000 per light vehicle. This funding helps small businesses cover costs related to purchasing or upgrading low-emission vehicles. 
• Scottish Growth Scheme - In Scotland, small businesses can apply for financial support through the Scottish Growth Scheme, which offers loans and equity funding. The scheme supports growth for all types of businesses, with funding of up to £500 million for business expansion and job creation within Scotland. 
• Cardiff Growth Fund - This fund provides grants of £2,500 to £10,000 for Cardiff-based SMEs to cover up to 50% of project costs. It is aimed at helping local businesses expand and make new investments, and improving Cardiff’s regional development. Applications close on December 31, 2024. 

Find out if there are any local grants in your area by visiting your local city council’s website. 

Grants for energy-efficient workspaces 

There are many government incentives and grants for business owners who think ‘green’.  Essentially, this means improving energy efficiency in the workplace and reducing carbon emissions. So, if you were planning to refurbish anytime soon, if you go green you could get funding towards it.  

• The Clean Growth Fund: Established by the UK government and private investors, this fund aims to support early-stage companies that can help the UK reach its net-zero target by 2050. It focuses on startups and SMEs developing clean technologies in sectors such as energy, waste management, and sustainable manufacturing. Investments range from £500,000 to £5 million. 
• The Energy Entrepreneurs Fund: This scheme, also part of the UK’s Net Zero Innovation Portfolio, provides grants to SMEs developing low-carbon technologies, with a focus on renewable energy, carbon capture, and energy efficiency improvements. 

Tips for getting a grant

You should only ever apply for a business grant once you’re sure you meet all the eligibility criteria, but there are some things you can do to help your application.

Contact the awarding body before applying

It might help to get in touch with the awarding body to let them know a little more about your business. This could be especially useful if there’s an issue that’s holding up your application as you’ll have a contact who will know your business and can offer advice on the next steps.

Apply as soon as possible

As you can imagine, awarding bodies get inundated with applications. This means it’s best to get your application in as early as possible.

If you apply as soon as the grant opens, competition won’t be as fierce as it’s likely that fewer people will know about it. The key to applying early is to keep searching to see when suitable grants become available.

Consider a consultant

If you don’t have time to keep an eye on upcoming grants or to search what’s currently out there, a grant consultant can do the work for you. 

Consultants will know the best ways to apply, keep track of applications, and even communicate with awarding bodies. This can be useful if you’re applying to a large body that’s more difficult to contact.

Although consultants can be quite expensive, it could be a price worth paying if their expertise helps you land the funds you need. A word of caution though, some awarding bodies don’t accept applications submitted through consultancies.

Pay close attention to the grant’s objectives

It’s important that you know exactly what you’re applying for and that you’re sure your business can meet the requirements of the grant. You’ll need to show evidence of this and explain why you need the funding and how you’ll use it.

Is any other government support available for businesses?

Aside from grants, there are various other government schemes that can help with funding and business costs, including:

• Northern Powerhouse Investment Fund - Delivered by the British Business Bank and available to businesses in the north of England, the Northern Powerhouse Investment Fund can provide funding to help get your micro business off the ground or grow your business through debt finance or equity injection.
• Venture Capital Schemes - The government has four schemes that offer tax relief to investors. This can help you attract investment to raise money and help with business growth plans. You can find out more, including eligibility criteria, on the government website. 

What are the alternatives to business grants?

If you aren’t eligible for a grant or you’ve had an application turned down, it might be worth considering a business loan. Working with Think Business Loans, the finance division of Bionic, you can compare a range of loans and lenders to find finance that fits your business.