Best Government Grants for Startup Business in UK 2023

The trend for new startups and small-scale businesses has extensively surged in recent years. Entrepreneurs across all UK regions are coming forward to commence their businesses and make it to the big economic world. 

The Government of the United Kingdom too welcomes this trend and powers up these small-scale businesses by offering various beneficial grants. However, many entrepreneurs stay unaware of these schemes and struggle to obtain funds for their businesses. 

That is why we thoroughly researched and assembled a list of best government grants for startups that can aid small businesses with vital funding to grow their enterprises. 

What is a Small Business Grant?

Start up business grants, commonly known as small business grants, are non-repayable amounts of money that are provided to small businesses as an initial investment for their business growth. The grants can be private, local, funding-based, or offered by the government. 

Each government start up grant comes with different guidelines and eligibility criteria. Also, the procedure to obtain a grant can be fairly lengthy in some cases due to the increased competition levels. 

Government Business Start Up Grants You Can Avail Of in 2022

Below given are some of the crucial small business grants offered by the government in the UK: 

1. Seed Enterprise Investment Scheme (SEIS)

This start up business loan from government helps small-scale businesses to raise money for their organisation. Individuals who invest in a company can obtain a tax relief of a maximum of £150,000 through SEIS investments. However, there are specific rules to comply with to receive the benefit of this scheme. 

Eligibility

An individual is eligible to apply for this scheme only if:

• The business is carrying out ​​a new qualifying trade. 
• The business is established in the UK. 
• The company is a standalone entity and not controlled by any other company. 
• The enterprise does not have gross assets of over £200,000 at the time of issuing of shares. 
• The company has fewer than 25 full-time equivalent employees when the shares are issued. 

Scope for the Business

It is a highly beneficial scheme for small-scale businesses as the tax benefit provided in the scheme entices a high number of individuals to participate in it. More individuals investing in your company means a higher number of funds that can help power your business. 

Active Dates

The scheme is still active with no closing dates. 

How to Apply?

The fundamental requirement to enrol your company for this scheme is to issue shares of your organisation. Next, you need to complete a compliance statement (which is SEIS1) and further, send it to HMRC. The application can be emailed at enterprise.centre@hmrc.gsi.gov.uk or posted at:

Address:

Venture Capital Reliefs Team 

WMBC 

HM Revenue and Customs 

BX9 1BN 

If your application is successfully accepted, HMRC will send you back a letter along with compliance certificates (form SEIS3) to give to your investors.

You can get the detailed information regarding the guidelines for this scheme in the link below:

Link to SEIS   

2. Enterprise Investment Scheme (EIS)

The EIS scheme is quite similar to the SEIS start up business loan from government scheme. It is designed for small businesses to raise capital for their organisation by offering tax relief to investors (individuals) who purchase new shares in the company. However, this scheme too has certain guidelines that need to be fulfilled to avail of the scheme, such as:

Eligibility

Your business or the individual would be eligible for this scheme only if:

• Your company can only raise capital up to £5 million yearly and a maximum of £12 million for a lifetime. 
• The company must receive the investment within seven years of its first commercial sale.
• The company must comply with the rules for at least three years after investing.
• The money raised by the new share issue needs to be leveraged within 2 years of the investment.
• The money should not be used to buy or purchase another business. 

Scope for the Business

This government funding for startups is highly advantageous in bringing good funds to companies which the businesses can invest to make a sustainable growth environment for their corporation. 

Active Dates

The scheme is still active with no closing dates. 

How to Apply?

Primarily, the enterprise needs to issue its shares to enrol in this scheme. Next, a compliance statement (E1S1) must be completed and sent to HMRC. Your application can be sent by email to enterprise.centre@hmrc.gsi.gov.uk or mailed to:

Venture Capital Reliefs Team 

WMBC 

HM Revenue and Customs 

BX9 1BN 

For more detailed information about this scheme, check out the link given below:

Link to EIS

3. Invest to Grow, Lincolnshire

It is a government funding for startups program initiated by The University of Derby which provides grants to startups and small-scale businesses. The loan and the grant amount can be anywhere between £15,000 to £250,000. This scheme supports businesses across the East Midlands and helps them innovate, grow and create jobs. 

Eligibility

To enrol for this scheme, your business should meet the following criteria:

• East Midlands must be the location of the company.
• The business has to create new jobs in the company. 
• The scale and scope of the company’s activity must be amplified. 
• The business must be related to the improvement or development of products and related services. 

Scope for the Business

This startup loans government grant is highly beneficial in kick starting your business. The scheme also provides loans which, if taken, can increase your chances of getting a grant as well. The funding provided under this scheme is sufficient for a small-scale business to start its initial operations. 

Active Dates

The scheme is still active with no closing dates. 

How to Apply?

The first step to putting forward your application requires filling out and submitting an Expression of Interest form. The University of Derby will check the form and revert back to you with an appropriate response. For any other specific details, you may reach out to them on +44 (0)1332 597907 or email at investtogrow@derby.ac.uk.

Link to Invest to Grow

4. The Smart Concept Fund, Wolverhampton

It is a highly innovative government start up grants scheme which is essentially designed to support the commercialisation of new technologies. The scheme offers grants of up to £16,500 at an intervention rate of up to 55% of approved project costs. You need to provide a proof of concept to avail of this scheme.

Eligibility

Here are a few eligibility criteria that need to be fulfilled to get this scheme:

• It is only available to businesses present in the regions of The Black Country, The Marches, Stoke on Trent, and Staffordshire Local Enterprise Partnership areas.  
• The business must be independently owned. 
• The company must employ no more than 250 people. 
• The turnover for the company should be less than €50 million per annum. 

Scope for the Business

Though this scheme offers substantially lower funding as compared to some other grants, it has a few great merits. On commence of your application, the organisation allocates advice to support the development of the grant application via an effective business plan. 

Active Dates

The dates would be closed in late 2022. 

How to Apply?

To apply for this scheme, the primary step is to submit an Expression of Interest form. The organisation will then assess your eligibility and provide further information. During the time your application is in processing, an advisor will be allocated for your application that will help develop your grant application for its success. After the review of Investment Decision Group (IDG), you will be awarded the grant amount. 

Link to The Smart Concept Fund

5. Start-Up Business Grants, Newport City

This start up business loan from government is purposefully designed for small-scale businesses and aims to raise economic development in the city. The organisation provides grants to businesses that they can use to provide their yearly rents and purchase new equipment for the business of up to £10,000.

Eligibility

Here are the eligibility criteria to avail of this scheme:

• The business should be newly registered.
• The business must create a new full-time equivalent job.
• The funds must be used for rental payments and purchasing of machinery. 

Scope for the Business 

This government funding for startups will help start-ups get push toward their growth by getting a substantial amount of funds ranging between £5,000 – £10,000. As compared to other schemes, the eligibility criteria for this scheme are simple, and hence the demand for it is also high. 

Active Dates

April 2022 – March 2023

How to Apply?

The business opting for this grant scheme must create a quotation stating the nature of their business with all necessary details such as its time of establishment, current number of employees, business plan, etc. This application needs to be sent to business.services@newport.gov.uk. The organisation will verify the details and provide a suitable answer to your proposition.

Link to Start-Up Business Grants

6. Open Fund: Sustaining Creative Development

This is one of the best startup loans government offers that help small-scale businesses explore ways to sustain their businesses in current changing circumstances. To help solve this purpose, the organisation provides funds between £1,000 and £100,000 for an activity that lasts up to 12 months. 

Eligibility

The following are the eligibility criteria to enrol for this scheme:

• The funds can only be availed of by organisations and groups based in Scotland.
• The business must be based on the arts, screen, and creative industries. 
• If the company is not established in Scotland, it can apply but needs to prove how its business benefits Scotland.

Scope for the Business

The scheme is perfect for businesses based in Scotland as it provides all the necessary support for a business to help it expeditiously grow in the market. 

Active Dates

There are no deadlines for this grant, and the scheme is still active. 

How to Apply?

The business needs to fill out an application form and send it to the corresponding organisation where its eligibility will be checked. For detailed information, you can contact the Open Fund team directly at www.creativescotland.com/contact-us.

Link to Open Fund

7. Invest4 Grant Fund

This is undoubtedly one of the most prominent government start up grants  schemes in the UK region. It is designed to help new small-scale businesses to grow more effectively. The fund is open for most business verticals based in the coast-to-capital area. The best part about this scheme is that it is offered to over 90% of applicants. The grants provided under this scheme range from £1,000 to £6,000.

Eligibility

To qualify for this programme, you must fulfil the following requirements:

• The business will have to agree to pay 70% of the cost of your business project. 
• The remaining 30% of the balance amount shall be covered by the scheme. 

Scope for the Business

The scope of this scheme for your business is limited as the amount provided by the grant is only sufficient to start a few operations but can not be banked upon. 

Active Dates

August 1, 2022 – 3rd October, 2022

How to Apply?

Primarily, a request needs to be raised to get the application form for the project from the project manager. Next is to fill out the application and submit it to the organisation. The further procedure is then carried out after checking your eligibility for the scheme. 

Link to Invest4 Grant Fund

8. Adur and Worthing Small Business Grants

This is a good government grants for startups scheme initiated by Adur & Worthing Councils specifically designed for very small-scale businesses that have less than ten employees. They offer a grant of up to £2,500. A business can avail of a maximum of 50% of funding contribution from this scheme. That means that if you buy equipment priced at £5,000, you will only be eligible for a grant of £2,500.

Eligibility

• The business must be present in the UK region. 
• The applicant must be an independent organisation.
• There should not be over ten employees in the enterprise. 

Scope for the Business

Your business can get significant gains by enrolling in this scheme. Adur & Worthing Councils Group keep bringing new schemes for the small-scale businesses to grow. Once you are present on their list, your business can learn from experienced leadership and get financial gains.  

Active Dates

The scheme will open in September 2022.  

How to Apply?

To apply for this grant scheme, you need to send an application to economyteam@adur-worthing.gov.uk with your business proposal. The application is to be sent only after the scheme becomes active in September. 

For any other queries, you can reach out to the Adur & Worthing Councils.

Link to Adur and Worthing Small Business Grants

9. New Anglia Growth Through Innovation Fund

It is one of the leading start up business loan from government schemes in the UK. It offers a grant value of up to £25,000 to help your business invest in research, development, and innovation. The grants pay up to 50% of the total eligible costs of your projects.

Eligibility

Here are the eligibility guidelines for this scheme:

• The business must be a sole entity and established in the UK. 
• The business must have less than 250 people in the organisation.
• The business turnover should be less than EUR 50m/£43m. 
• The business must be spending the grant money for research purposes.

Scope for the Business

It is a moderate-level scheme with moderate benefits and scope. It will help you get funding of £1,000-£25,000, depending upon your requirement. It is an ideal scheme for companies that are interested in higher research and development.

Active Dates

The scheme is active with no last dates. 

How to Apply?

An application needs to be filled out to apply for this scheme. You can email your application to growthhub@newangliagrowthhub.co.uk. For any other details related to the scheme, you may contact 0300 333 6536. 

Link to New Anglia Growth Through Innovation Fund

10. Accelerated Growth Programme Wales

It is one of the finest government start up grants programs running in the UK region that aids in developing an entrepreneurial culture, digital support, and high growth prospects for small-scale businesses. The program offers financial support and coaching services to enterprises to help them scale up their businesses. 

Eligibility

The following are the eligibility criteria to enrol in this scheme:

• The business must be present in Wales. 
• The employee count should be less than 250. 
• The business must be able to present how its business is scalable and what opportunities it can provide to interested people. 

Scope for the Business

This government grants for startups scheme is specifically designed to boost businesses to a higher growth rate. Hence, investing your business time in this scheme can help you get beneficial advice from the councils and support to scale your business. 

Active Dates

The scheme is active with no closing dates. 

How to Apply?

An application needs to be processed to the corresponding organisation to avail of this scheme. They will check your eligibility and respond with a suitable course of action. For more details, you can get in touch with Business Wales Service.

Link to Accelerated Growth Programme Wales

Is a Business Grant Different from a Business Loan?

Many people often confuse themselves with a business loan and a business grant. However, both these are two separate things with a similar purpose to aid business growth. 

A business loan is the sum of money lent by a financial corporation to a small-scale business for a specific time period. The money provided by the financial institution needs to be repaid with interest. 

However, in the case of a small government start up grants, an enterprise is offered money by the government or a private financial institution with no intent of getting the money back. 

However, some grants are offered with some set of rules. It may include that the organisation taking the money will have to invest the equivalent amount of granted money into their business.

How to Apply for Small Business Grants?

Every government grants for startups has its own application process that must be fully understood before proceeding with the application. However, there are a few general guidelines to consider that will help you present your application in the best possible way. Keep a note of the following things:

1. Research

Do in-depth research about the organisation providing the grant and try to find out what they are expecting from their applicants. 

2. Apply as Early as Possible

Many grant schemes are provided on a first-come, first serve basis. Therefore, apply for the grant process as soon as you are done with your research.  

3. Never Miss a Deadline

Missing a deadline signifies you aren’t serious about your business or the funding organisation. So make sure that you apply soon enough and do not miss the deadline for the application.

4. Be Clear and Specific

Make your proposal application crystal clear, specific, and easy to understand. Overly complicated language can confuse the grant holders and may turn negative for you. 

5. Have a Sustainable Business Plan in Hand

Make sure you have a good future plan for your business with you. It will show your determination toward the business and help you get grants more easily. 

How Do I Write a Business Grant Proposal?

When writing a business grant proposal, make it simple and interesting for the reader. Here are some of the tips:

• Build a financial forecast for your business to showcase its business potential. 
• Test and conduct a quality check for your application before it is submitted. 
• Follow clear instructions (if any) provided by the grant organisation. 
• Provide a piece of evidence that your enterprise is capable of delivering the work.
• Show how their grant will be helpful for your organisation. 

The Bottom Line

To sum it all, there are various start up business loan from government available for startups and small-scale businesses in the UK. So, check out your eligibility for the grant that suits you the most, spend some time researching it, and file an application. The grants will surely help you get a boost for your organisation and set it on the trajectory of growth.