Starting a business takes a lot of courage, and there are many difficulties that you have to face, one of which is finances.
Understanding that multiple small business grants for startups are available in the UK can help you, as an entrepreneur, get your business off the ground.
Whether you’re an aspiring young business owner, a tech innovator, or someone working on a creative project, these grants provide invaluable financial support and resources.
That’s why this article is to help you out, we have the top 5 small business grants for startups in the UK.
Top 5 UK Small Business Grants for Startups
Start-Up Loan
The startup loans program in the UK is a government-backed initiative designed to provide financial support to individuals who want to start or grow their small businesses.
This loan is not like a business loan, but it is an unsecured personal loan for which you have to go through a credit score check.
The loans have a fixed interest rate of 6% per annum, making them affordable for the business owners.
Individuals can borrow between £500 and £25,000. If there are multiple directors or partners in the business, then each can apply and take a loan with a maximum total of £100,000 per business.
The best part of this grant is that you will get free support and guidance to help discuss and execute your business plan, and if you are a successful applicant, you will get up to 12 months of free monitoring.
Eligibility:
- The Applicants must be at least 18 years old.
- Must be a citizen of the UK and have the right to work there.
- The business must be either a new venture or have been trading for less than 36 months.
Innovate UK Smart Grants
The Innovate UK Smart Grant is designed to support and fund innovative project that has the potential to drive economic growth in the UK.
This grant fund is investing up to £25 million in the best and leading startup business ideas.
Eligibility:
There is an eligibility criterion that the business owners have to keep in mind.
- The applicant for the Grant must be a UK-registered company that has project activities in the UK.
- At least one small or medium-sized enterprise (SME) must be involved in the project.
- Innovations should be completely new or propose a perfectly designed demonstration, unique features, and product differences from existing products or processes.
- Then, while applying for the Grant, for projects lasting 6 to 18 months, the total eligible costs must be between £100,000 and £500,000, and they can be either single or collaborative. Then, for projects lasting 19 to 24 months, the total eligible costs must be between £100,000 and £1 million, and they must be collaborative.
Currently, the Smart Grant program is paused, but within a few months, it will be re-launched to better align with National priorities while keeping in mind the current challenges SMEs face.
The Prince’s Trust Programme
If you are between the ages of 18 to 30 and need a brand for your business in the UK, then you can apply for The Prince’s Trust Enterprise Programme.
This Programme is designed to support young entrepreneurs at multiple stages, like information sessions, workshops, and mentorship.
Through this grant, the young businessperson can take advantage of financial support of up to £30,000.
This fund includes a start-up grant of up to £5,000, which is non-repayable, and a start-up loan ranging from £500 to £25,000, which you have to repay with interest.
Also, you will get the guidance you need to develop and launch your business idea.
Eligibility:
- Aged between 18 and 30
- Unemployed or has to work fewer than 16 hours per week
- Required to complete a graduation or post-graduation degree before applying for funding
- Must have a business plan
Seed Enterprise Investment Scheme (SEIS)
For small businesses, paying taxes is a big issue.
That’s why the Seed Enterprise Investment Scheme (SEIS) is a UK government initiative designed to encourage small business owners or early-stage startups to work stress-free by offering tax relief.
This tax relief also applies to individual investors who buy shares in the company.
That’s not it, you can raise £150,000 for your company through SEIS. Then, Investors can receive significant tax benefits, such as income tax relief of 50% on investments up to £100,000 per tax year.
Eligibility:
- Must be a UK-based business.
- The company must not have been trading for more than 2 years.
- The company must have fewer than 25 employees and less than £200,000 in gross assets.
- The business must be a “trading company” and have activities that include technology, manufacturing, or other areas.
National Lottery Project Grants (Arts Council England)
In the UK, you’ll also find funds that are designed for businesses, artists, and organizations that are connected with the arts, culture, and heritage sector.
So it’s a very helpful grant as it provides financial assistance for a wide range of artistic projects and disciplines such as Theatre, Dance, Visual arts, Literature, Museum practices, Library activities aligned with Universal Library, etc.
This leads to increased engagement with arts and culture among the public.
Through this Grant, you can get a range from £1,000 to £100,000, with the possibility of funding for projects lasting up to three years. The maximum amount available is £100,000 for specific project costs.
Eligibility:
- Must be based in England.
- Applicants can be individuals over 18 or from organizations.
- Projects must focus on arts, culture, or heritage.
- The project should engage and benefit the public.
- Applicants must demonstrate financial viability and project management capability.
Conclusion
In the end, you can understand that for startups, businesses, money is important, and how helpful SME grants can be.
These grants not only provide funding but also mentorship, training, and networking opportunities, which are very important for the growth of the businesses.
So, carefully review the eligibility requirements and application processes for each grant, and take full advantage of the support you can get from the grant to help your business succeed.
