What Government Grants Are Currently Available to Small Businesses?

If you’re planning to launch your own business, there’s no harm in asking for help.

There are hundreds of government-run grants available to British entrepreneurs who want to lower their start-up costs, invest in innovation, and achieve much faster growth.

If you’re keen to take advantage of government grants for opening a small business, here’s our pick of some of the most useful schemes available right now in the UK.

Follow the links provided to learn more about the criteria for each initiative and find out if you are eligible to apply.

Key Takeaways

• The Seed Enterprise Investment Scheme (SEIS) offers tax-efficient incentives for investors who back early-stage start-ups, providing capital and industry expertise.
• The Prince’s Trust Enterprise Programme supports 16–30-year-olds with training, mentoring, and grants of £175–£250 to launch business ideas
• British Council Grants fund international research and partnerships, focusing on areas such as climate change, education, and public health
• The Growth Guarantee Scheme is designed to help small and medium-sized businesses access the finance they need to grow
• The Secure Innovation Security Review helps SMEs operating in critical or high-risk sectors strengthen their defences
• The Electric Vehicle Infrastructure Grants support the adoption of electric vehicles.
• The Boiler Upgrade Scheme helps replace old fossil fuel heating systems with low-carbon alternatives
• The UK Games Fund supports independent games developers in creating new prototypes
• Enterprise Capital Funds combine private and public investment to support growing businesses
• Enterprise Finance Guarantee enables lenders to provide loans by guaranteeing a portion of the risk.
• Local Enterprise Partnerships (LEPs) connect businesses with regional Growth Hubs to encourage investment, boost jobs, and develop local skills.
• UnLtd Awards provide up to £18,000 in funding and support for social entrepreneurs running profit-for-purpose businesses.
• Innovate UK and the R&D Tax Credit Scheme help small businesses fund research, development, and innovation projects, even if they are not ultimately successful

Seed Enterprise Investment Scheme (SEIS)

As one of the government’s most popular schemes for small businesses, SEIS provides tax efficient benefits to investors who provide early-stage funding to start-ups. If you’re successful, you’ll get access to much-needed capital, plus the skills and experience of investors with contacts and expertise in your sector.

The Prince’s Trust Enterprise Programme

The Prince’s Trust provides training, mentoring and financial support to help businesses develop great ideas and launch their products or services with confidence. The programme is open to UK citizens between the ages of 16-30 and offers grants of between £175 and £250. To be eligible, you will need to be working less than 16 hours a week (or unemployed) or studying for less than 14 hours a week.

British Council Grants

British Council government grants deliver finance for research, travel, and workshops through Going Global Partnerships. Funds can be used to support partnerships with universities, colleges, education policy makers and other bodies in the UK and internationally. These partnerships tend to be focused on projects relating to climate change, public health, and teaching opportunities.

Growth Guarantee Scheme

The Growth Guarantee Scheme is a government-backed initiative designed to help small and medium-sized businesses access the finance they need to grow. It offers lenders a government guarantee, which means they can provide loans and other types of finance to companies that might otherwise struggle to secure funding.   

This scheme can be particularly useful for businesses looking to invest in new equipment, expand their operations, or simply manage cash flow. With around £500 million in additional capacity made available, the Growth Guarantee Scheme is one of the largest government efforts to support UK businesses in accessing affordable finance.

Secure Innovation Security Review

Cybersecurity is becoming an increasingly important concern for small businesses. The Secure Innovation Security Review funded through Innovate UK, helps SMEs operating in critical or high-risk sectors strengthen their defences. The programme provides up to £2,500 towards expert cybersecurity reviews, with businesses contributing £500 themselves.

By taking part, companies can safeguard sensitive information, protect their intellectual property, and reduce their exposure to cyber threats. This grant is especially valuable for businesses working in areas such as defence, renewable energy, and artificial intelligence, where security risks can be higher.

Electric Vehicle Infrastructure Grants

With the UK pushing towards net zero, government funding is available to support the adoption of electric vehicles. The Electric Vehicle (EV) Infrastructure Grant provides financial support for the installation of charging points in workplaces, enabling businesses to prepare for the future of transport.

Grants can range from £350 up to £30,000 depending on the size and scope of the project. These funds can help cover the cost of purchasing and installing charging points, making it easier for staff and fleets to transition to electric vehicles. Applications are open until March 2026, so businesses are encouraged to take advantage of the support while it is available.

Boiler Upgrade Scheme (Non-Domestic)

The Boiler Upgrade Scheme is a government initiative designed to help replace old fossil fuel heating systems with low-carbon alternatives, such as air source or ground source heat pumps. While often associated with domestic properties, the scheme is also available to some non-domestic buildings, including commercial spaces.

Eligible businesses can receive grants of £5,000 to £7,500 to cover the upfront cost of switching to greener heating systems. The scheme runs until December 2027 and represents a significant opportunity for companies to reduce both their carbon footprint and long-term energy costs.

UK Games Fund

The UK Games Fund, backed by the Department for Culture, Media and Sport, is designed to support independent games developers in creating new prototypes. This government-funded programme provides non-repayable grants to help cover development costs, enabling creative businesses in the gaming sector to bring new ideas to life.

The fund is particularly valuable for small teams or start-ups, as it provides early-stage financial support that can help them secure further investment or publishing deals. For developers working in one of the UK’s most dynamic creative industries, this scheme can provide the vital boost needed to get a project off the ground.

Enterprise Capital Funds

Enterprise Capital Funds are a government-backed initiative that combines private and public investment to support growing businesses. Managed by the British Business Bank, these funds are designed to bridge the equity gap, making it easier for small and medium-sized companies to access venture capital.

Businesses can benefit from investments of up to £5 million, providing the resources needed to scale operations, hire new staff, or invest in innovation. By blending government support with private investment, Enterprise Capital Funds encourage long-term growth and sustainability.

Enterprise Finance Guarantee

For businesses that struggle to secure loans due to a lack of security or financial track record, the Enterprise Finance Guarantee offers a lifeline. This government-backed scheme enables lenders to provide loans by guaranteeing a portion of the risk.

Companies can borrow between £1,000 and £1 million, with the government providing a guarantee to the lender. This makes finance more accessible to businesses that might otherwise be unable to obtain credit, supporting growth and stability.

Local Enterprise Partnerships (LEPs)

There are 38 Local Enterprise Partnerships (LEPs) between local authorities and businesses in the UK, which are organised and managed within various regional Growth Hubs. According to the LEP website, LEPs exist to empower local companies, generate private investment, and boost jobs and skills, amongst other benefits.

UnLtd Awards

Comprised of both funding and support, UnLtd Awards are for social entrepreneurs: those who have started, or are looking to start, a business with a distinct social cause (sometimes called a profit for purpose organisation). There’s up to £8,000 available for new organisations, and up to £18,000 available for more established companies between 1-4 years old that need help scaling up their operations.

Innovate UK

Innovate UK is the UK’s national innovation agency, which supports business-led innovation in all sectors, technologies, and regions across the country. It helps small companies hit their research and development goals by providing funding at various points throughout the year.

Research & Development Tax Credit Scheme

Research and development (R&D) tax credits aren’t considered government grants as such – but this type of tax relief is a brilliant option for businesses that can prove they are investing in new products, services, systems, or processes that have not yet been explored in their industry.

You can apply for R&D tax credits if you are embarking on a project that is scientifically or technologically uncertain, and you may even be eligible for this relief if your project is unsuccessful. Find more information on R&D tax credits on gov.uk.

The grants listed here represent the tip of the iceberg when it comes to everything the UK government can offer start-ups and smaller businesses. Whichever scheme you choose, we wish you the best of luck with your application!