Are you an aspiring entrepreneur?, Or looking to start a small business in the UK? If so, you might be thinking of where to get funding for your business, right?
Here comes small business grants for startups in 2025. Small business grants can be an absolute game-changer for your small business.
The UK business grants landscape is teeming with opportunities, especially for new entrepreneurs. However, with various small business grants, it can be difficult to choose the right one for your business.
If you initiate a small business or run a start-up, you can take advantage of a range of business grants.
To know more about small business grants available in the UK, continue reading this article.
Be with the article and explore what business grant is suitable for you!
What is a Small Business Grant?
Small business grants for startups are an amount of money that is offered to small businesses. Sometimes, small businesses undergo difficult situations where they can not complete a specific task due to lack of money.
In that case, small business grants rescue them. Small businesses or startups can accomplish specific projects with small business grants.
For example, small businesses can apply for small business grants to cover the cost of training, research, recruitment, property improvements, and more. National, regional, or local sources offer small business grants to startups.
Small business grants are available for an extensive range of industries. Usually, small business grants are nonrepayable. However, each small business grants have different eligibility criteria and different guidelines.
What is The Difference Between a Small Business Grant and a Small Business Loan?
the most significant difference between a small business grant and a loan is that a loan should be repaid. In small business loans, the interest is added to the repayment of the borrowed amount.
Small businesses should agree with this term before proceeding with the loan. Moreover, there is a timeframe, within this, the small business should make the repayment of the fund to the lender.
On the other hand, usually, a small business grant is nonrepayable. So, the small business grants are more competitive than a small business loan.
However, you should keep in mind that some small business grants come with a repayment option.
So, you need to check through the terms and conditions before applying for a small business grant.
What Types of Business Grants Are There In The UK?
There are hundreds of small business grants available in the UK to support startups. Have a look at the several types of business grants.
Direct grants: Direct grants are offered to businesses to cover start-up costs. These costs include recruitment, staff, training and development, equipment, and more. if you are looking to get off the ground then direct grants can help you in your way.
In-kind grants: in-kind grants offer resources, or services instead of money to small businesses. These resources include software, expert consultancy, and more. If you need specific tools or advice then you can opt for in-kind grants.
Voucher schemes and discounts: These grants offer discounts or vouchers to small businesses. small businesses can use these vouchers to purchase services or products for their operation.
Top 5 UK Small Business Grants For Startups in 2025:
1. Innovate UK:
Innovate UK is one of the best small business grant bodies in the UK that offers a range of grants for businesses. If you are planning to develop new projects, products, or services, or improve the existing ones, you can go for it.
The grants will cover anything from collaborative research to training and studies. Thus, the grants can provide a substantial boost to forward-thinking enterprises.
The process of application for the grants of Innovative UK is very competitive.
Eligibility Criteria:
You must be a UK-registered business
Must carry out all business-purpose project work in the UK
Have an intention to utilize the project outcomes for the UK and global benefits.
2. The National Lottery Heritage Funds:
If you aspire to launch a heritage-related project or run the same, you can consider the National Lottery heritage funds. The body is most versatile and offers business grants ranging from 10,000 Pounds to 250,000 pounds.
The authority prioritizes the projects that focus on preserving the heritage in the UK. So, if your business aim is preserving the heritage in the UK for future generations, you can get eligible for the small business grant.
Eligibility Criteria:
Your project must focus on preserving historic buildings, or the environment for the community.
Your business project should encompass preserving nature, cultures, and traditions. T
here are four investment principles in the authority such as saving heritage, protecting the environment, organizational sustainability, and access the participation. So, your business needs to adhere to the organization’s four investment principles.
3. AD: VENTURE Business Growth Grant:
The Business Growth Grant aims to offer business grants to new ambitious entrepreneurs. This business grant aims to provide the grants that are working for three years.
This funding body offers grants between 1,500 Pounds to 10,000 pounds. You can use the funds of the grant for tools and production equipment, It equipment, office furniture, initial marketing, training, and development.
Eligibility Criteria:
Your business should have less than 250 full-time employees
Your business’s annual turnover must be less than 43 million Pounds.
4. Elmbridge Business Boost:
The Elmbridge Business Boost focuses on offering small business branches to support the local businesses in the Elmbridge area.
Businesses of various sectors such as retail, trade associations, chambers of commerce, and community organizations can opt for business grants from this organization.
The business grants help you improve your physical presence and operational efficiency. The authority provides you with a grant for business up to 2,000 pounds.
You can use the funds to modify the shop fronts and modify the vacant shops for reuse. You can also use the fund to promote sustainability and community benefits.
Eligibility Criteria:
Your business should operate in the Elmbridge area
You can enhance your business’s physical presence
Support sustainable and community benefits
5. Gigabit Broadband Voucher Scheme (GBVS):
Gigabit broadband voucher scheme (GBVS) is one of the best UK small business grants that supports small businesses. The grant is designed for small businesses in rural sectors.
If your business needs to upgrade its IT infrastructure, you can consider a GBVS grant for your business. The grant helps your business in upgrading government-funded projects to improve connectivity.
If your business is struggling with sub-par breadboard, you can get up to 210 million Pounds on offer. You can apply for a 4,500 Pounds grant voucher to cover the cost of installing a gigabit-capable connection. This connection is likely to improve your business’s smooth operation.
Eligibility Criteria:
Your business must be situated in the UK’s rural area
It tends to enhance its IT infrastructure
Desire to Improve its connectivity
Wrapping It Up:
Every penny matters for startups. According to some reports, 20% of startups in the UK face failure due to lack of money. This means a financial helping hand can save a small business from failure. Whether you want to modify your shop or expand your business, a cash injection can be a crucial funding source for small businesses.
However, some entrepreneurs do not go forward with taking help from grants. They do not have detailed knowledge about the grants, eligibility criteria, or more. So, to help you, on your way, here, in this article, we have discussed the top 5 UK small business grants for startups. You can pick one grant from the list that perfectly aligns with your business’s needs and ambitions. Let someone help your business with grants when you need it!
