Guide: How to apply for a business grant

Business grants can be a valuable source of funding – whether they’re used to launch a business or to stay afloat during challenging periods. There are a variety of options available for small businesses looking to apply for a small business grant.

In this guide, we’ll cover:

• What is a business grant?
• Who can apply for a business grant?
• How much funding is available?
• How to apply for a small business grant
• Alternatives to business grants
• How Dojo can help
• FAQs

What is a business grant?

A business grant is money awarded to companies that typically don't need to be repaid. 

Businesses can apply for a business grant, free from the need to pay it back. These grants are available through government bodies, private organisations, or charitable foundations and – unlike loans – are usually provided to support specific business initiatives or sectors.

Who can apply for a business grant?

Most SMEs – especially small businesses, start-ups, sole traders, and entrepreneurs – can apply for a small business grant. Eligibility usually depends on a few key factors, like industry, location, business size, and what the funding will be used for.

Those looking to apply for a business grant free of repayment obligations often use this funding to support innovation, growth, or stability.

How much funding is available?

• Small business grants typically offer a few hundred to a few thousand pounds for start-up costs or equipment.
• Local council grants often range between £1,000 – £5,000¹.
• Innovate UK Smart Grants can award up to £2 million for high-impact R&D projects².

For those looking to apply for a business start-up grant, businesses will usually need to co-fund part of the project.

The step-by-step guide: How to apply for a business grant

UK businesses have access to a wide range of grants and schemes, provided through both public and private sources. A good starting point is the GOV.UK Business Finance Support Finder, which lists national schemes tailored to different business types and sectors.

1. Research available grants:

To apply for a grant to start a business, check out the following: 

• GOV.UK Business Finance Support Finder: A central database of available government funding and support schemes.
• Local councils and regional development agencies: Many offer area-specific grants and guidance for small businesses.
• Business support organisations and trade associations: These groups often share relevant grant opportunities within their networks.
• Private grant schemes and competitions: Some banks, corporations, and charities run funding schemes for innovation, sustainability, or start-ups.
• Well-known programmes: The Prince’s Trust (for young entrepreneurs), local Enterprise Partnerships (LEPs), and the New Enterprise Allowance (NEA), provide tailored support and funding depending on the stage or focus of the business.

Common types of grants include:

• Innovation and R&D grants
• Start-up and early-stage business funding
• Green energy and sustainability initiatives

2. Check eligibility requirements

Funding schemes have their own criteria and can vary quite a bit, so it’s a good idea to scope out exactly what’s needed to qualify. Eligibility when applying for small business grants often depends on a few key factors, such as:

• The size and type of the business (for example, start-ups, sole traders, or SMEs)
• where the business is based since some grants are limited to specific regions
• the sector or industry it operates in
• what the funding will be used for, such as innovation, sustainability projects, or creating jobs.

Understanding how to apply for a small business grant begins with aligning business goals with the grant’s purpose.

3. Prepare a business plan and proposal

To successfully apply for a business grant, a business plan is arguably one of the most important parts of the application – a chance to showcase the business's value and potential. 

Here’s what’s included: 

• Executive summary of the business
• clear objectives aligned with the grant’s purpose
• budget breakdown showing how the funds will be used
• evidence of market demand, growth plans, or innovation.

Businesses looking to apply for a grant to start a business should make a clear case for long-term impact.

4. Submit the application

Those looking to apply for a business grant online should keep the following in mind:

• Use the official platform or portal.
• Double-check that all the necessary documents are included.
• Pay close attention to formatting rules and word limits.
• Don’t miss a deadline – this usually leads to an automatic disqualification.
• Try not to leave sections incomplete.
• Make sure all key documents are attached.
• Stay away from vague answers – especially when it comes to how the funding will be used.

Taking the time to prepare properly can boost the chances when businesses apply for a business grant online – and make the process much smoother.

5. Follow-up and next steps

Once submitted, keep an eye out for updates and be ready to respond if the grant provider asks for additional information or documents.

If rejected – don’t worry – the proposal can be refined and resubmitted for other opportunities to apply for small business grants.

Alternatives to business grants

• Equity finance: Raise capital by offering shares in the business to investors.
• Government-backed loans: Schemes like Start Up Loans offer accessible funding with fixed interest rates.
• Purchase order finance: Access funds to fulfil large customer orders before receiving payment.
• Crowdfunding: Secure small investments from a large number of backers through online platforms.

Sources

¹ Finance and support for your business – GOV.UK

² Smart Grants funding guidance – UKRI