Table of Contents
- What are small business grants?
- Start-up business grants in England
- Creative and cultural small business grants in England
- Business energy and climate grants in England
- General growth and expansion business grants in England
- Other small business grants in the UK
- Other ways to finance your small business or start up
Whether you’re launching a brand new start-up or hoping to grow an existing small business, the question of how to fund your enterprise is likely to be a big one.
From start-up business loans to crowdfunding campaigns and angel investors, there are a dizzying number of funding options for small business owners to consider.
While all of these options have their merits, small business grants and start-up business grants are often viewed as one of the best ways to secure the funding you need to launch or expand your business.
The good news is that firms throughout the UK can take advantage of a range of small business grants and start-up business grants. Here, we walk you through some of the grants specifically available for small business owners based in England.
What are small business grants?
Small business grants are sums of money that are usually awarded to small or medium-sized firms in order to help them achieve a specific aim.
You may be able to use a grant to hire new employees, for example, or to expand your premises. Or you may be able to secure a location-specific start-up grant to help you launch a wholly new business in a certain part of the country.
Small business grants often come from the government or other public sector bodies, but you may also be able to find grants which come from private sector organisations.
The key thing about small business grants is that they are non-repayable. That means that, unlike small business loans, grants provide a free source of funding – though your business may have to contribute some money itself . And unlike when you raise money by selling shares in your business, you don’t need to give up part of your business in exchange for a grant.
This makes small business grants desirable, and it’s why small business grants may be more likely to come with certain strings attached, like strict eligibility requirements or stipulations about how or where the money can be spent.
Small business grants can also be very competitive, with the British Business Bank estimating that over 90% of business grant applications ultimately end up being rejected.
However, don’t let that deter you. There are many grants available specifically for businesses based in England and, as with anything else in business, persistence is crucial.
To stay up to date with all the grants available in England, you can always search for your local Business Board Network Growth Hub or use the government’s nationwide business funding search tool.
Alternatively, you can read on for a rundown of some of England’s best business grants and start-up business grants.
Start-up business grants in England
You should be able to find start-up business grants in almost every corner of England. These are grants which have been designed to help get new ideas off the ground.
Start-up grants in England include:
- Central Bedfordshire Start-up Grant: Eligible new businesses in Central Bedfordshire can access a start-up grant worth between £300 and £3,000. Grants can be used to cover start-up costs and must be 20% match-funded by your business, meaning you’ll contribute 20% of the cost and the grant will cover the rest.
- Elmbridge Start-up Boost: Start ups in Elmbridge, Surrey, can apply for a one-off grant worth up to £1,000 to cover 50% of eligible costs related to getting your business up and running.
- Hertfordshire Local Enterprise Partnership: If you are hoping to start a new business in Hertfordshire, or have been running your business there for fewer than five years, you may be eligible for a package of fully-funded specialist support designed to help early-stage businesses grow.
- Mansfield Business Start-Up Grant: If you are looking to start a new business in the Mansfield district in Nottinghamshire, you may be eligible for a start-up grant worth up to £2,500. This grant can be used towards start-up costs, including marketing expenses and the purchase of machinery and equipment.
- Scarborough Business Development Grant Scheme: Start-up business grants worth up to £1,000 in the financial year have previously been available in the Yorkshire town of Scarborough for new businesses and those trading for less than 18 months. Business owners will need to match any amount they receive by 50%. While the scheme is not currently accepting new applications, it might be worth checking back every now and then if you think your business could benefit.
- West Midlands SME Grant Programme: New businesses in Birmingham, Cannock Chase and Solihull can apply for grants worth between £1,000 and £7,500 to help them get off the ground.
- Worcester City Council Business Start-up Grant: If you are based in Worcester, and are at the start-up stage or have been trading for less than 12 months, you can apply for funding from the city council worth up to £1,500. This grant can be used to cover one-off start-up costs, such as web design fees or building works, and must be fully match-funded by your business.
Creative and cultural small business grants in England
If your business operates in England’s creative or cultural sectors, then you may be able to take advantage of the following grants:
- Arts Council England Funding: There are a number of grants available for cultural organisations through Arts Council England, including National Lottery Project Grants between £1,000 and £100,000.
- Big House Grants: If you are a business in the Creative and Digital Industries sector based in Derbyshire or Nottinghamshire, you can access Big House grants between £1,000 and £2,500. Meanwhile, SMEs in these areas looking to hire external expertise (in the form of freelancers or talent) to help their businesses grow can take advantage of the Big House Elevator programme. Elevator grants can cover up to 30% of the total project cost, provided the spend for expertise is between £3,500 and £7,000.
Business energy and climate grants in England
The following business grants relate to climate-change measures and energy efficiency for businesses based in England:
- Energy Efficiency Grants: If you are based in Coventry or Warwickshire, you can get grants of between £1,000 and £100,000 to cover up to 50% of the costs of making your business more energy efficient.
- LEAP Small Business Grants: Small business owners and founders based in Horsham District can apply for a grant worth up to £2,000 to cover the costs of future-proofing your business. Green LEAP grants of up to £5,000 are also available for climate-friendly projects, which will help future-proof businesses in the Horsham area and achieve their wider climate ambitions. While the current round of funding is oversubscribed and no longer open for applications, it may be worth checking back soon in case the fund re-opens.
- Net Zero Bucks: Businesses in Buckinghamshire can access a fully-funded package of support aimed at helping you make your business more climate friendly. Businesses can find out their carbon footprint, receive a net zero report and help to develop a climate action plan. This is also a way to boost the green credentials of your business, while reducing energy bills and waste.
General growth and expansion business grants in England
Just as there are a range of grants designed to support start-up businesses across the length and breadth of England, there are also grants available to help established small businesses grow and expand.
These include:
- AD:VENTURE Growth Grant: If your SME is based in West Yorkshire, and if you have been trading for fewer than three years, you may be able to access a Growth Grant to cover 50% of costs relating to growth and job creation in your business. Match-funded grants start at £1,500 and go up to £10,000.
- Chichester District Council Grant Programme: If you run an SME in Chichester, in West Sussex, looking to implement growth projects or improve publicly owned spaces, you can access grants both under and over £1,000.
- East Sussex Invest Programme: If your business is based in East Sussex, you can apply for business grants from £10,000 up to £25,000. Grants are usually awarded in conjunction with a loan, and you will be expected to match 60% of the funding. This grant is temporarily closed to new applications, so check back again soon if you’re interested.
- Elmbridge Business Boost Grants: If you are a retail business in the Elmbridge area in Surrey, you can access grants worth up to £2,000 to improve your shop front or restore a shop to commercial use. Locals can also access grants of up to £1,000 to help town or village projects aimed at driving new footfall, investment and streetscene, or sustainability improvements. All applications require at least 50% match funding.
- The Business Growth Fund: Businesses in Gateshead, the North East Combined Authority and Sunderland that are looking to expand or establish new operations may be eligible for capital funding. Grants are available to cover 30% of expenditure on projects, which couldn’t succeed without grant support. Your business must be planning capital investment of at least £67,000 to be eligible.
- Invest to Grow: If you are based in the East Midlands, and work in one of the eligible sectors (such as manufacturing, life sciences, construction, and engineering), you can access grants worth from £15,000 to £250,000 for projects with a minimum cost of £50,000.
- Malvern Hills Growth Grant: If you run a business in the Malvern Hills district in Worcestershire that has been trading for at least three years, you may be able to access a growth grant worth up to £2,500. Note that grants must be fully match-funded by your business and are only available for businesses that are not able to receive support through other European funded schemes.
- Mansfield Business Growth, Shop Front Improvements and Vacant Shops Grants: Grants worth up to £2,500 are available to Nottinghamshire businesses in the Mansfield district. These can be used to expand and grow your business, make shop-front improvements, or to occupy a vacant retail property. For established local businesses, a Business Growth Grant worth up to £2,500 can be used to develop and implement a growth plan.
- Nelson Town Deal Grants: Businesses in the Nelson Town Deal area, in Lancashire, can apply for grants to help them become more resilient and to grow. Awards can total up to 50% of eligible project costs, up to a maximum of £100,000. For every £10,000 your business receives in grant money, you are expected to create one new full-time job. Funding priorities are geared around investing in plant and machinery, increasing energy efficiency and improving or adapting business premises.
- North East Business Support Fund: If you’re a business owner in the North East, you may be eligible for a grant to help cover the costs of improving your business. Grants have been designed to help with the cost of projects requiring external expertise, from marketing and web design to engaging the services of HR or finance consultants. Businesses in Northumberland and Tyne and Wear can access grants to cover up to 35% of the cost of projects priced between £3,000 and £8,000. For firms in County Durham, funding can cover up to 40% of the cost of projects priced between £2,500 and £8,000.
- West Midlands SME Grant Programme: Existing businesses in Birmingham, Cannock Chase, Solihull, and Shropshire can apply for growth grants from £1,000 to £100,000. Among other things, grants may be used for expanding and growing existing businesses, inward investment and product development.
- Worcester City Council Business Growth Grant: If you are based in Worcester and your business has been trading for longer than 12 months, you may be able to apply for a grant of up to £2,500 (if you run your business from home) or £5,000 (if you have commercial premises). The grant can be used to cover some of the costs of one-off expenses necessary to help your business grow. For example, you could put the grant towards the cost of equipment, machinery, building works, premises’ refurbishment, fixtures and fittings, website construction or software. To be eligible, you will need to demonstrate that you wouldn’t be able to fund the project in question without a grant.
Other small business grants in the UK
Businesses in England may also be able to benefit from nationwide grants on offer to firms throughout the UK.
If you run a business anywhere in the UK, consider checking out our guide to the UK’s small business and start-up business grants.
Similarly, there are specific small business and start-up grants available to firms in the other regions of the UK.
To find out more about start-up grants and small business grants in Scotland, try our dedicated guide to small business grants in Scotland.
For information on the various grants available for small businesses and start ups in Wales, you can always turn to our guide to business grants and start-up grants in Wales.
And for a summary of some of the grants on offer for small businesses and start ups in Northern Ireland, there is always our guide to small business and start-up business grants in Northern Ireland.
Other ways to finance your small business or start up
While small business grants and start-up grants can be a great way to cover the costs of launching or expanding your business, grants aren’t the be-all and end-all of small business funding.
For some businesses, the best funding option may be a traditional small business loan. For start ups, you may be able to find a suitable start-up business loan that aligns with your vision.
Like grants, loans can provide your business with an injection of capital, without the need to give up any equity. The key difference, of course, is that loans must be repaid with interest – so make sure you budget for this before you apply for one.
Aside from loans, you may be able to raise money for your business through crowdfunding or by winning the backing of an angel investor. A business credit card, meanwhile, could help your firm’s cash flow, provided you use it responsibly.
Established businesses may also be able to benefit from asset finance, invoice finance, or equity financing, depending on the specific circumstances of your business.
With so many options available, it’s easy to see why even the most savvy founders can get tied up over business funding. That’s where our guide to funding a UK small business could come in handy.
Image source: Getty Images
About the Author
DIVE EVEN DEEPER
Is Etsy the Right Platform for Your Business? Four Questions to Help you Decide
by Amy Knight
Public Liability Insurance: What is it and What Does it Cover?
by Duncan Ferris
by Tim Leonard