Business Grants & Support

Business grants provide valuable access to funds that don’t have to be repaid. Use our business grant finder tool to discover what funding and support is available to your business. Hundreds of grant options for SMEs across the UK.

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What is a business grant?

Unlike a business loan where there’s a set repayment schedule, a business grant is funding for your business that you don’t need to pay back. Small business grant funding is a popular way to inject cash into your business or get some new equipment. Organisations (like the government) offer a variety of business grants, including business grants for women, sector-specific grants, tax relief grants and more.

Business grant finder

With so many grants available for small businesses, finding the best ones for your business can be difficult. That’s where our business grant finder tool comes in handy. Our tool is completely free for you to use and helps you research all business grants available to you.

Here at Capalona, we’re on hand to help you with any questions you might have about applying for grants.


How are business grants paid out?

Not all business grants are in the form of finance; a grant can help you secure new equipment for your business or vouchers to support its growth. If your business grant is in the form of finance, you’ll usually receive the grant amount in full via a BACs payment transfer.

It’s important to be aware that If your business grant is a cash injection, some lenders expect the business to contribute the same amount of money as the grant, but others don’t. Lender criteria vary - that’s why it’s essential to understand your options thoroughly.


What different types of business grants are available to startups and small businesses?

There are many business grants out there, but just because they’re available doesn’t mean you’re eligible to apply for them all.

Here are five of the main types of business grants available for your startup or small business:

Direct grant

This type of grant might be the one you’re most familiar with - they’re given as a sum of money that you don’t have to repay. Instead, you usually have to match the amount given with your own money. They’re also likely to come with restrictions or conditions for spending the sum.

Access to resources

Having access to resources that larger companies have can help you grow your small business further. And that’s exactly what this type of grant is for. You can access business advice, and if you have fewer than 19 employees, you can tap into mentoring and workshop services.

Equity finance

With this type of finance, you don’t have full control over your business; instead, an investor will take some of the ownership. This type of business grant relies on your ability to forecast consistent business growth. You can get tax relief for investors through the Enterprise Investment Scheme.

Tax reliefs

If you’re looking for ways to ease financial burdens for your business, then tax relief could help you cut costs. With Employment Allowance, for example, you could reduce your annual National Insurance liability by up to £4,000 - if you’re eligible.

Soft loan

Unlike the grants we’ve been talking you through, a soft loan needs to be paid back. They’re government-backed loans which means they’re more flexible than your traditional bank loans with better interest rates and flexible repayment options.


Covid-19 Government support grants

Since August 2020, £7.8 billion in business grant funding has been issued by the UK government to help small and medium businesses during coronavirus. Even as restrictions ease and relative normality returns, you can still access financial support through COVID grants. Grants including the Recovery Loan Scheme (ends December 2021) and the scheme to protect businesses from eviction (extended until March 2022).

Grants have already helped many businesses; is it time to see how they could help you? Use our business grant finder.


What are the benefits of business grants?

There are many advantages to getting a business grant, including the obvious fact that you don’t have to repay them. You’re essentially getting a free cash injection or access to business advice to help support business growth. You don’t have to part with any business shares, either - you can remain fully in control of your business. Another pro of business grants is you gain credibility amongst other businesses. Why? Because being awarded a grant gives you business idea weight.


Are there any disadvantages to getting a business grant?

There are also some negatives to business grants, not least that they’re seriously competitive. Every small business wants one (and there were 5.94 million small businesses at the start of 2020, so you’ve got stiff competition). There are usually always conditions you have to abide by with a business grant, too, so be prepared for that. And get comfortable, applying for a business grant is a lengthy, time-consuming process. So if you need the money quickly, you might be best looking at getting a business loan.


Are small business grants taxable?

Yes, they are. If you’ve received any grants from schemes set up to help businesses and the self-employed through coronavirus, they are taxable. Why? Because they’re classed as a type of income. But the good news is there’s a whole host of tax relief options for small businesses, including business rates relief, employment allowance and R&D Tax Credit.


What can I use a business grant for?

Many businesses applied for grants over the pandemic to help them maintain a semblance of cash flow. However, some grants will come with conditions and restrictions on how you can spend them. So you must understand these terms and conditions before you make your application.

How you spend your grant depends on which grant you apply for and the grant body you apply through, but you can use a business grant for many things, including:

  • Hire apprentices and additional staff
  • Research and development
  • Access training, mentorship and innovation advice
  • Generally investing in your business

How can I get a grant for my business?

Applying for a business grant can seem daunting, so we’re here to answer any questions you might have about the grant application process.

You can apply for a grant following these steps:

  • Make sure you’re informed about the grant options available to you; you can use our free business grant finder tool.
  • Work on your business plan. Grant awarding organisations will need to see how you plan to use the grant to develop your business.
  • Take time to understand the grant conditions and make sure you understand what that means for your business.
  • Don’t give up. The grant process can be a long one, and the criteria can be tough. Many businesses struggle to get funding the first time, so try not to let it deter you.

If you’re left wondering what kind of business grant you could access, check out our free business grant finder tool, or ask our impartial team for advice.