Grants available for small businesses and how to apply for them
Securing grants for small businesses can be a challenge. It can be challenging looking for them and a challenge applying for them – particularly if you’re a new business owner. If successful, however, they can provide some financial support and create quite the confidence boost.
Grants available for small businesses are constantly opening and closing, it can be hard to keep track. This blog contains the grants that are currently available to UK businesses at the time of publishing (April 2021). These grants range from government funding to private franchises.
What type of funding is available?
Grants and funding opportunities are available to SMEs (small and medium enterprises). Often, they are based in specific geographical locations, in a specific sector or have certain objectives that need to achieve. These aims and objectives could range from lowering carbon emissions to job creation.
Small businesses are defined as:
- An organisation with fewer than 50 employees.
- A turnover of less than £6.5million and a balance sheet totalling £3.26million.
Medium sized businesses are defined as:
- A business with no more than 250 employees.
- A turnover of £25.9million and a balance sheet of no more than £12.9million.
Some grants available for small businesses may not be monetary. Some service providers offer free mentoring to develop a business and workshops.
Available Grants for Research and Development
Innovate UK
Innovate UK Smart Grants is part of UK Research and Innovation investing up to £25 million in innovative solutions. All proposals must be business-focused and grants are available for small businesses. Applicants can come from any area of technology. They can be applied to any part of the economy such as:
- The arts, design and media
- Creative industries
- Science and engineering.
Deadline: The Innovate UK Smart Grant is open until 26th May 2021 at 11:00am.
Project size:
- Projects of 6 – 18 months must have total eligible project costs between £25,000 and £500,000. They can be single or collaborative.
- Projects of 19 – 36 months must have total eligible costs between £25,000 and £2 million and must be collaborative.
Note: All applicants must complete the equality, diversity and inclusion (EDI) survey.
How to apply:
The application process is split into three sections:
- Project details
This can include:
- Application details
- Equality, diversity and inclusion
- Research category
- Project summary
- Public description
- Scope.
- Application questions
The application questions will include:
- What is the business need, technological challenge or market opportunity behind your innovation?
- What approach will you take and where will the focus of the innovation be?
- Who is the project team and what are their roles?
- What does the market you are targeting look like?
- How are you going to grow your business and increase your productivity in the long term as a result of the project?
- What impact might this project have outside the project team?
- How will you manage the project effectively?
- What are the main risks of this project?
- What impact would an injection of public funding have on the businesses involved?
- How much will the project cost and how does it represent value for money for the team and the taxpayer?
-
Finances
Each organisation in your project must complete their own:
- Project costs
- Organisation details
- Funding details.
You can start your application here. If you’re unsure about how to go about your grant proposal, a Grant Writing Consultant can help. They’re well versed in the field of funding proposals and know what funders are looking for. They can accurately convey this information, giving you an edge over your competitors. A Grant Writing Consultant can help secure grants for businesses including grants for charities, cash grants for small businesses and even council business grants.
Now is a great time to get involved and start applying to research and development (R&D) funding opportunities. UK government R&D funding is at the highest level in four decades. There are opportunities for grants for small business start-ups, grants for limited companies and more. They can help subsidise, support and enable new businesses to get involved with innovative research and development opportunities.
Other Innovate UK funding opportunities include:
- SBRI competition – Improving Hip Fracture Outcomes Using Data, phase 1
- ISCF TFI: large collaborative R&D projects
- Commercialising Quantum Technologies: feasibility studies round 2
- African agriculture knowledge transfer partnerships (KTP): 2020 to 2021, round 5
- Knowledge transfer partnerships (KTP) 2020 to 2021, round 5
- SBRI: Improving Multimorbidity Acute Care Using Data Analytics, phase 1
- ATF: moving the UK automotive sector to zero emissions.
Grants available for small businesses
Gigabit Broadband Voucher Scheme
The Gigabit voucher scheme is a little different to a traditional grant. The vouchers are essentially a grant for small business owners in rural areas. They will go towards the cost of installing gigabit-capable broadband connections.
SMEs can claim £3,500 for the cost of connection. You can find out if you are eligible by using the postcode checker on their website. Voucher funding can only be used through a broadband supplier registered to this scheme.
Kickstart Scheme Grant
The Kickstart Scheme provides funding to create new jobs for 16 to 24 year olds on Universal Credit. A business can apply for this scheme to cover:
- 100% of the National Minimum Wage (or National Living Wage depending on the age). 25 hours per week for a total of 6 months
- Associated employer National Insurance contributions
- Any relevant workplace pension contributions (automatic enrolment).
This is one of the grants available for small businesses that can provide subsidies for hiring vulnerable people. Employers can spread the job start dates until 31st December 2021. You will receive funding until 30th June 2022 if a young person starts their job on the 31st December 2021.
Further funding is available to provide support so that young people on the scheme can get a job in future.
How to apply:
You can apply for a Kickstart Scheme grant by either:
- Applying online yourself
- Applying through a Kickstart gateway who is already working with the Kickstart Scheme. This could be any time of organisation such as a local authority, charity or trade body.
What you’ll get:
You will receive funding of £1,500 per job. This should be spent on setup costs and supporting the young person to develop their employability skills. Such as:
- Training and employability support (provided by you, a Kickstart gateway or another provider)
- Uniform or PPE
- IT equipment and software.
Job criteria:
The jobs that are created with Kickstart Scheme must be new jobs. They must not:
- Replace existing or planned vacancies
- Cause existing employees, apprenticeships or contractors to lose work or reduce their working hours.
Jobs must:
- Be a minimum of 25 hours per week for 6 months
- Pay at least the National Minimum Wage or National Living Wage for the employees age group
- Only require basic training.
You need:
- Your Companies House reference number, Charity Commission number or Office or the Scottish Charity Regulator number if you have one
- Details of the jobs and their location
- Your organisation’s address and contact details.
Grants for small business start-ups
New Enterprise Allowance
The New Enterprise Allowance is for unemployed people who want to start a business. This grant for small business start-ups will provide a weekly allowance worth up to £1,274 over 26 weeks. You’ll also be provided with a mentor and can apply for a loan to help with start-up costs.
You need to be receiving certain benefits and have a business idea that could work. For support, you may be eligible if you’re over 18 and either:
- You or your partner get Universal Credit, Jobseeker’s Allowance or Employment and Support Allowance
- You get Income Support and you’re a lone parent, sick or disabled.
Do It Award
UnLtd is offering up to £5,000 grant to help you start a social enterprise. They also provide up to £15,000 grants for social venture owners to support and grow your venture. They’ll provide training and assign you a dedicated award manager who is an expert in growing and starting social enterprises. They are committed to 50% of their awards going to entrepreneurs from:
- Black
- Asian
- Minority ethnic
- Disabled backgrounds.
Criteria:
- Aged 16 and over
- Living in the UK
- Willing to participate in a learning experience
- Have a real social impact
- Working to benefit people living in the UK
- Fulfil a clear demand and need
- Have a clear output and goals.
Application deadline: 30th June 2021 at 23.59pm.
Fantastic Services £5,000 (Re)start Grant
Fantastic Services, a home services franchisor, has a programme offering up to £1 million of cash grants to start a business. Each £5,000 will enable 200 people to start up their own business within the domestic service industry. They are providing a home services business grant for those who have been affected by the pandemic.
This grant for small business start-ups is open to applicants in all parts of the UK. The grant can go towards initial business start-up costs such as equipment, supplies, branding and more. They will also provide a training programme to help entrepreneurs with the skills they need to successfully run their own franchise.
Grants for the self-employed
Self-Employed Income Support Scheme (SEISS)
The SEISS is a grant scheme for the self-employed or eligible to those who are a member of a partnership. This scheme is now into its fourth round and
Eligibility criteria:
You must have traded in both tax years:
- 2019 – 2020 and submitted your tax return on or before 2nd March 2021
- 2020 – 2021.
You must either:
- Have been trading but are temporarily unable to do so due to Coronavirus
- Be currently trading but are impacted by reduced demand due to Coronavirus.
You must declare that you intend to continue trading and believe there’ll be a significant reduction in your trading profits.
Application deadline: 30th April 2021.
Grants for businesses in England
Covid Business Recovery Fund, City of London
The City of London has launched the Covid Business Recovery Fund worth up to £50 million. The grants will offer funding support to SMEs that contribute to the Square Mile’s vibrancy at street level. It will be for businesses that provide services to returning city workers, visitors and residents. Individual grants will not exceed £100,000 and is on a first-come, first-served basis. This grant for small business owners must be submitted on their online portal.
Applicants will need to demonstrate they provide an in-person service to the general public in either:
- Retail
- Hospitality
- Medical
- Leisure sectors.
Other requirements include businesses that have:
- Had trading premises in the City of London since at least 20th March 2020
- Taken steps to reduce its costs as far as practical
- Taken up all available grants or loans
- Actively engaged with their landlord and agreed to a rent-free period or reduction in rent
- Pays the Living Wage.
Application deadline: 11th June 2021
Business grants in Wales
Caerphilly Business Start-Up Grant
This business start-up grant helps newly formed businesses in all sectors. The applicant must be setting up in the Caerphilly County Borough. Businesses must not have started trading before application and approval. A discretionary grant can provide up to 50% of eligible project costs to a maximum of £500.
Funding can be used to go towards:
- ICT equipment
- Marketing
- Capital equipment
- Website development
- Training building works to business premises
How to apply:
The applicant must provide a business plan with a minimum of one-year cash flow forecast, projected profit and loss. Two comparable quotes are also required for each capital item. The business must provide full-time employment for the applicant.
Grants available in Scotland
In Scotland, there are a number of larger organisations that offer funding opportunities. It includes Scottish Enterprise, Business Gateway and Better Business Finance.
Open Fund: Sustaining Creative Development
The Open Fund has funding available for both individuals and organisations within the creative industries. The fund is open all year round with no deadlines. It aims to enable businesses to explore ways of working that will help them adapt to current changing circumstances. All applicants must have a UK bank account.
Funding for individuals: Freelance and self-employed artists and creative practitioners in Scotland. They can apply for projects supporting the development of their practice. You can apply for a grant to work collaboratively with others, or if your practice is collaborative.
Funding for organisations: For organisations and groups who are Scotland-based, whose work or project involves the arts, screen and creative industries.
Funding available: Between £1,000 and £100,000.
Northern Ireland Business Grants
Proof of Concept Grant Fund
The Proof of Concept Grant Fund from Techstart is a pre-commercial grant awarding fund. The grant supports entrepreneurs in Northern Ireland. The grants can be used to explore the commercial potential and viability of an innovative concept. Grants are awarded on a quarterly basis.
Funding available: ‘Concept Grants’ of up to £10,000 and ‘Concept Plus’ Grants of up to £35,000 are available.
Need help with writing your grant application?
Our Grant Writing Service is for businesses who want to start applying for grants, but don’t know where to begin. If you don’t have the resources or the time in-house to write a winning grant – we can help. Our Grant Consultants have over 60 years of bidding experience and can help you bid for funding efficiently. They can take care of the whole thing for you – they’ll even submit it on your behalf.
Get in touch to find out how we can help your business grow!
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