How to find and win small business grants
Grants are money you don't pay back, so they're worth the effort — but most are competitive, short-lived and full of small print. Here's how to find the ones you can get and put in an application that stands out.
What a business grant is
A grant is funding for a specific project, such as new equipment, cutting your energy use, training staff, research and development or selling abroad. You agree what you'll spend it on, and you don't repay it as long as you stick to the conditions.
Most grants have a few things in common:
- They pay for a project, not running costs. Rent, wages you'd pay anyway and everyday bills are rarely covered.
- They often pay only part of the cost. Expect to put in some of your own money — this is called match funding.
- You usually can't claim for costs you've already spent. Wait for the written offer before you order anything.
- They close. Many local schemes are open for a few weeks, or until the money runs out.
Where to find grants
- GOV.UK Find a Grant — the government's own list of national grant schemes. Many are for charities or public bodies, so filter for ones businesses can apply for.
- Your council — local grants for things like shop fronts, energy saving, start-ups or taking on staff. These are often only on the council's own website.
- Growth hubs and devolved agencies — in England, your local growth hub; in Wales, Business Wales; in Scotland, Business Gateway and the enterprise agencies; in Northern Ireland, Invest NI and your council.
- Innovation and sector funders — Innovate UK for research and new products, plus bodies for arts, screen, farming and other sectors.
TendersNearMe brings these together: every grant on Find a Grant, plus local schemes we check for every night. Search open grants.
Check you're eligible before you write a word
Most rejected applications fail on the basics. Before you start, check:
- Where you are. Local grants usually need your business — sometimes your premises — to be in the area.
- What kind of business you are. Some schemes are for limited companies only; others welcome sole traders. Some are only for charities or social enterprises.
- Your size and history. Look for limits on staff numbers, turnover or how long you've been trading.
- What you'll spend it on. The project must match what the grant is for, and the costs must be on its list of eligible spending.
- Timing. Can you start and finish the project, and claim the money, within the funder's dates?
- Other public funding. Most business grants are subsidies, and there's a limit on how much "minimal financial assistance" a business can get over three years. Funders will usually ask what else you've had.
On TendersNearMe, the eligibility check reads a grant's rules against your business profile and tells you what could rule you out, so you know whether it's worth the time.
Writing a strong application
- Use the funder's own words. Read the aims of the scheme and show, point by point, how your project meets them.
- Be specific. "A second van will let us take on 40 more jobs a year and hire one apprentice" beats "this will help us grow".
- Get real quotes. Most funders want quotes for the main costs, and some want two or three.
- Show the benefit beyond your business. New jobs, training, lower carbon emissions or money spent with local suppliers often score well.
- Keep to the word limits and answer every question. Assessors mark against a scoring guide — make their job easy.
- Have your evidence ready. Accounts or bank statements, proof of address, insurance and any policies they ask for.
Professional and Business members can get a first draft of the application built around the funder's aims, with the budget lines and evidence to have ready.
After you apply
Decisions can take a few weeks to a few months. If you're offered a grant, read the offer letter carefully: it sets out what you must spend, by when, and what proof you'll need to claim. Most grants are paid after you've spent the money and sent invoices, so plan your cash flow. If you're turned down, ask for feedback — it helps with the next one.
Questions
Do business grants have to be paid back?
No. A grant is not a loan, so you don't repay it as long as you meet its conditions. If you don't spend it on what was agreed, the funder can ask for it back.
Can I get a grant for something I've already bought?
Usually not. Most grants only pay for costs you take on after your application is approved, so don't order anything until you have the offer in writing.
What is match funding?
Many grants pay only part of the cost — often half — and expect you to pay the rest. That share is your match funding, and you may need to show you can afford it.
Can sole traders get grants?
Yes, many grants are open to sole traders as well as limited companies. Some ask for a minimum number of staff, a trading history or a business bank account, so check the rules for each one.
This guide is general information, not financial advice. Each funder's own guidance is the final word.