Top Small Business Grants: How to Apply and Secure Funding
Discover the best grants and loans available for small businesses and how to successfully apply for them this year.
Securing finance is a vital step in launching a business, and a grant could be just what you need to get started or breathe new life into your venture.
It can help you invest in essential tools, equipment, or services to keep operations running smoothly, or simply provide the financial support needed to achieve your business ambitions.
Setting up a business can be particularly challenging at the moment, especially with inflation, the cost-of-living crisis, and ongoing economic uncertainty. However, the number of new businesses has risen steadily over the years, with around 5.5 million businesses recorded in the UK as of January 2024.
Thankfully, there are now a wide variety of finance and funding options available. Business grants remain one of the most sought-after routes, with numerous schemes open for applications. In this article, we’ll explore the grants that could benefit your business and how you can successfully apply for them.
Understanding Small Business Grants
Small business grants are funds awarded to entrepreneurs and business owners by the government or private organisations. Unlike business loans, they don’t require repayment, accrue interest, or involve giving away equity in your company. However, most grants are still subject to tax.
These grants can be used to invest in key aspects of your business, such as training, equipment, staffing, materials, and professional development.
Different Types of Business Grants
There are various types of grants available to support businesses, including:
Direct grants – A lump sum provided to a business, often with conditions requiring it to be spent on a specific project or initiative.
Resource and training grants – These offer access to mentorship, training, and other resources to help businesses grow and develop.
Green grants – Funding aimed at businesses implementing environmentally friendly initiatives and reducing their carbon footprint.
Soft loans – While not strictly a grant, these loans come with more favourable repayment terms compared to traditional bank loans, making them a more accessible funding option.
Grants and Support for Women Entrepreneurs
For years, the gender funding gap has made it more difficult for women to access finance for their business ventures. In 2024, reports showed that women-led companies received just 5.8% of all investments, while the majority of funding—including from angel investors, private equity, and venture capital—was directed towards male-founded businesses.
To address this imbalance, several organisations have introduced grants and funding initiatives specifically for female entrepreneurs. Below, we’ve highlighted some key opportunities available.
Innovate UK (Women TechEU Award)
Innovate UK provides various funding opportunities, including the Women TechEU Award, which supports female-led businesses in the technology sector. In 2025, 160 winners will receive €75,000 (around £62,000) alongside a personalised development programme. Applications are open until 17th March 2025.
Female Founders Fund
This seed-stage venture fund invests exclusively in women-led businesses, accepting applications throughout the year. Entrepreneurs can apply by completing an online application form and submitting their business pitch.
Astia
With 25 years of experience, Astia is a venture capital firm that supports high-growth, female-led businesses. It accepts applications year-round, and businesses can apply directly via the Astia online portal.
Cartier Women’s Initiative
The Cartier Women’s Initiative provides financial support to female entrepreneurs through several award programmes, including the Impact Awards, Regional Awards, and Science & Technology Pioneer Award. Applications will be open from 18th April to 24th June.
Support Programmes and Business Development for Women Entrepreneurs
HATCH Support Programmes
HATCH focuses on helping underrepresented entrepreneurs—including women—develop the skills and knowledge needed to grow their businesses. It offers three programmes: Launchpad, Incubator, and Accelerator. Graduates may also be eligible to apply for grants through the HATCH funding scheme.
Anita Borg Institute
Although not a traditional grant provider, the Anita Borg Institute recognises and supports female founders in the tech industry. Entrepreneurs can apply for funding through three award programmes: Abie Awards, Pass It On Awards, and PitcHER, with winners receiving up to $50,000 (around £40,000). Details on applications for 2025 are yet to be announced.
With multiple funding opportunities available, women entrepreneurs now have more support than ever to help grow their businesses. Be sure to check eligibility requirements and application deadlines to make the most of these resources.
Grants for Social Entrepreneurs: Funding Opportunities to Make a Difference
Social enterprises and startups working to tackle societal issues can benefit from various grant programmes designed to support their impactful work. Below, we’ve highlighted some key funding opportunities available to social entrepreneurs in the UK.
Key Fund
The Key Fund is a social investment fund that offers funding between £5,000 and £30,000 to social enterprises, charities, and community businesses aiming to create positive social change. It’s particularly beneficial for businesses that may face difficulties accessing traditional finance, especially those operating in disadvantaged communities. Applications can be submitted online at any time of the year.
Big Issue Invest Social Impact Debt Fund IV
Launched in September 2023, the Big Issue Invest Social Impact Debt Fund IV focuses on businesses addressing housing and social care issues in the UK. Eligible social enterprises can apply for loans ranging from £1 million to £4 million. Applications can be made online.
UnLtd Scaling Up Award
The UnLtd Scaling Up Award is aimed at social ventures that have been trading for more than a year. This award offers up to £18,000 in funding to help expand your impact. To apply, create an account with UnLtd and complete the application process through their platform.
Invest Impact Fund
A collaboration between Big Issue and UnLtd, the Invest Impact Fund offers soft loans up to £1,500,000. This fund gives entrepreneurs the flexibility to choose between three types of funding: equity, revenue share, and patient debt. Applications can be submitted through its online form.
Big Issue Invest Impact Loans
The Big Issue Invest Impact Loans programme offers soft loans ranging from £20,000 to £200,000 (or up to £400,000 in some cases) to social enterprises and charities. Entrepreneurs can register their interest online, after which a member of Big Issue’s investment team will guide you through the process and assess your eligibility.
Pounds for Purpose
Pounds for Purpose, under property management company Firstport, is a fund that supports young social entrepreneurs in Scotland. The programme offers grants up to £500 for individuals exploring ideas that address social issues. You can apply online via their portal.
UnLtd Starting Up Award
The UnLtd Starting Up Award is for early-stage social enterprises that haven’t yet started trading. It provides up to £8,000 to help support the launch of socially-conscious ventures. Applications can be made by creating an account with UnLtd and completing the application form through their platform.
For social entrepreneurs aiming to make a positive impact, these grants provide valuable opportunities to secure the necessary funding to grow and scale their businesses. Be sure to check the eligibility criteria and deadlines to make the most of these programmes.
What Do You Need to Secure a Business Grant?
Each business grant has its own application process, criteria, and requirements. While the process may vary, the effort you put in is often well worth the reward.
Before applying, it’s essential to research thoroughly to identify the grant that best aligns with your business. Applying for a grant that you’re not eligible for or suited to can waste your valuable time, so it’s important to find the right fit.
Once you’ve found the perfect grant for your business, you can begin the application process. To give yourself the best chance of success, ensure you have the following prepared:
An up-to-date and detailed business plan
A clear and comprehensive spending plan
Previous company accounts (which can be downloaded from your accounting software)
An explanation of why your business qualifies for the grant
Tips for Applying for a Business Grant
To increase your chances of securing a grant and standing out from the competition, it’s important to stay organised, be prepared, and stay on top of deadlines. Here are some helpful tips for your application:
Apply as Early as Possible: Many grants are awarded on a first-come, first-served basis, so keep a close eye on deadlines and application windows to ensure you don’t miss out.
Stay Organised with Project Management Tools: Applying for grants requires managing multiple deadlines, documents, and communications with stakeholders. Using project management software can help you keep track of important dates, set reminders, and ensure you don’t miss any vital steps.
Contact the Awarding Body: Reach out to someone from the organisation offering the grant for personalised advice, especially if you encounter any issues during the application process.
Consider Hiring a Grant Consultant: If you're struggling to find the right grants or need guidance, a grant consultant can help. However, be aware that some grant bodies may not allow third-party applications, so always check the rules first.
Focus on the Grant’s Objectives: Ensure you understand the specific objectives of the grant so you can clearly explain how you will use the funds to meet these goals.
Be Honest: Don’t try to manipulate the facts to make your business fit the grant’s criteria. If you find yourself doing this, it’s likely not the right grant for your business.
By staying organised and putting effort into your application, you can improve your chances of success in securing the business grant that will help you take your venture to the next level.
For support with your business finance, contact the experts at Zyla Accountants today.