Checked 2 October 2026

Small Business Grants UK

What a UK small business can actually apply for in 2026, and which of the schemes still quoted elsewhere have closed.

What grants are available for small businesses in the UK?

UK small businesses can get non-repayable grants from two main public sources in 2026, plus tax relief and loans that are often confused with grants. Innovate UK funds innovation through sector-specific competitions and its Growth Catalyst programme, after closing Smart Grants to new applications in January 2025. Local and combined authorities run business support that Local Enterprise Partnerships handled until April 2024, and your local growth hub can say what is open. The government's Find a Grant service lists government grants across the UK. Alongside these, R&D tax relief gives a 20% credit on qualifying spend under the merged scheme, Start Up Loans lend up to £25,000 at a fixed 7.5% with free mentoring, and export help comes as free advice, training and UK Export Finance guarantees rather than grants. Most grants pay only part of a project's cost, so plan to fund the rest yourself.

Jon PrescottMBA

Founder, EchoGrant

Published: 12 July 2025

Updated: 3 October 2026

Unlike loans, grants do not need to be repaid, which makes them an attractive source of non-dilutive funding. The difficulty is that much of what is written about them online is out of date: Smart Grants, Local Enterprise Partnerships and several export grants still appear in guides long after they closed. Everything below was checked against gov.uk, UKRI and the scheme operators' own sites on 2 October 2026. The key to winning is the same as ever: pick schemes that genuinely match your business, meet every eligibility rule, and answer the published assessment criteria directly.

Types of Funding Available

The main routes open to UK small businesses, including the ones that are not grants

Innovate UK competitions

Varies by competition

Innovate UK now funds businesses through sector-specific competitions and the Growth Catalyst programme. Smart Grants, the old open competition, have been closed to new applications since January 2025.

Eligibility: UK registered businesses; scope and limits set by each brief

Timeline: Most close at 11:00am on the closing date; the brief gives the decision date

Learn more →

Start Up Loans

Up to £25,000

A government-backed personal loan through the British Business Bank, not a grant. No arrangement or early repayment fees, and 12 months of free mentoring for first-time recipients.

Eligibility: New and early-stage UK businesses

Timeline: Fixed 7.5% a year, repaid over 1 to 5 years

Learn more →

Local growth funding

Varies by area

Local Enterprise Partnerships lost central funding in April 2024 and their functions moved to local and combined authorities. Local business support now flows through those authorities, and your local growth hub is the place to ask what is open.

Eligibility: Set by your local or combined authority

Timeline: Varies by programme

Learn more →

R&D tax relief

20% credit under the merged scheme

Not a grant, but money back on qualifying R&D. Loss-making SMEs spending at least 30% of total costs on R&D can claim enhanced support instead: an extra 86% deduction and a payable credit of up to 14.5% of the surrendered loss.

Eligibility: UK companies doing qualifying R&D

Timeline: Claimed through your company tax return

Learn more →

Export support

Free advice and training; guarantees

There is no current government “export grant” for SMEs. What exists is the Export Support Service, the free UK Export Academy, and UK Export Finance guarantees and insurance that help you borrow and get paid.

Eligibility: UK businesses exporting or planning to

Timeline: Ongoing

Learn more →

Find a Grant

Search service

The Cabinet Office’s official search for government grants. Start here before paying anyone to find grants for you: legitimate government grants are free to apply for.

Eligibility: Organisations and individuals across the UK

Timeline: Updated as schemes open

Learn more →

Eligibility Checklist

Most UK small business grants share common eligibility requirements:

UK registered company

Must be incorporated in England, Wales, Scotland, or Northern Ireland

SME status

Under 250 employees, turnover below €50m or balance sheet below €43m

Trading history

Requirements vary - some need 12+ months trading, others accept pre-revenue

Project viability

Clear plan for how the grant will be used and what outcomes expected

Your share of the cost

Most grants pay only part of project costs, at a rate set by the scheme, so plan to fund the rest

Sector alignment

Many current competitions target specific sectors, such as advanced manufacturing or engineering biology

5 Tips for Successful Applications

Match the Funder

Only apply to grants where you clearly meet eligibility criteria and your project aligns with funder priorities.

Lead with Impact

Start applications with the problem you solve and outcomes you will deliver, not your technology or product.

Be Specific

Quantify everything possible - market size, customer numbers, job creation, revenue projections.

Show Capability

Prove your team can deliver. Include relevant experience, track record, and how you will fill any gaps.

Get Feedback

Have someone outside your industry read your application. If they do not understand it, neither will assessors.

Frequently Asked Questions

How do I get a grant for my small business UK?

Start with the government’s Find a Grant service, which lists government grants across the UK, and with your local growth hub for local support. For innovation projects, look at Innovate UK’s open competitions, each of which has its own brief, scope and closing date. Most grants need a formal application showing your project plan, expected outcomes and how you will use the money, and they are scored against published criteria, so answer those criteria directly rather than describing your business in general.

Are there free grants for small businesses in the UK?

Yes. Government grants from Innovate UK, UKRI and local authorities are non-repayable if you meet their conditions. Most pay only part of the project cost, at a rate set by each scheme, so you fund the remainder yourself. Beware of websites charging fees to find grants: legitimate government grants are free to apply for, and the government’s Find a Grant service lists them at no cost.

What is the easiest grant to get for a small business?

Smaller local schemes run through local and combined authorities usually face less competition than national innovation competitions; ask your local growth hub what is open in your area. R&D tax relief is not a grant, but it is the most accessible form of government support for companies doing qualifying R&D, because it is an entitlement rather than a competition: if you qualify and claim correctly, you receive it. Start Up Loans are loans rather than grants, but come with free mentoring.

How much grant money can a small business get UK?

It depends entirely on the scheme. Local grants are often in the thousands of pounds, while Innovate UK competitions each set their own limits in the brief, and an application outside them is made ineligible. Start Up Loans lend up to £25,000, repayable at 7.5%. Under R&D tax relief, the merged scheme gives a 20% credit on qualifying spend. Check the limits in the specific scheme before you plan a budget around a figure.

Do I have to pay back a small business grant UK?

Genuine grants do not need to be repaid - that is what distinguishes them from loans. However, grants come with conditions: you must use the money for the stated purpose, deliver promised outcomes, and often report on progress. If you misuse funds or fail to complete the project, you may need to return some or all of the grant. Some programmes are loans, not grants, so always check the terms carefully. Start Up Loans must be repaid, while Innovate UK grants are non-repayable if you meet the conditions.

How long does it take to get a small business grant UK?

Each scheme sets its own timeline. For Innovate UK, the competition brief gives the decision date: for example, the Advanced Manufacturing Measurement and Sensing pilot closing on 7 October 2026 tells applicants by 18 December 2026, roughly ten weeks later. Local schemes are often quicker. Factor in your own preparation time as well, and if partners are involved, the time they need to complete their own sections.

Checked on 2 October 2026 against gov.uk (R&D tax relief, the transfer of LEP functions, export support, Find a Grant), UKRI and Innovate UK guidance, startuploans.co.uk and the British Business Bank. Schemes change; check the operator's own page before you apply.