If you have started your own small business in the UK, you might be eligible for a number of grants designed to help you run your company and expand your operations. We prepared some information to help you research available grants.

What are small business grants?

Government grants for small businesses can have many forms. The most popular types are:

Direct grants – when money is given directly to a new company to help them start operating
Soft loans – offer more favourable repayment terms, lower interest rates, and longer repayment periods than loans offered by banks
Equity finance – reductions on income tax and investments for start-ups and small businesses that employ less than 25 people.

What is the difference between grants and loans?

Loans and grants are the two most popular ways for small businesses to get money for their activities.

Many people confuse grants with loans and decide against applying for them thinking that they will have to pay all the money back. Have a look at the table below to find out what the difference between grants and loans is.

grants	loans
Grants are non-repayable, which means you can treat the money you receive as a gift. Grants can be awarded by the government, trusts, or corporations. There is a limited number of grants available to businesses so applying for them is very competitive.	A loan for small businesses refers to money that you will have to repay within a certain timescale. Loans are usually given by banks or private lenders. When repaying the loan, you will have to pay it back with interest. If you fail to pay back the loan money, the lender can retain something you used as a deposit.

Sometimes grants are offered to businesses on the condition that business owners invest the equivalent amount into their company. For example, if you receive a grant of £15,000, you also have to have £15,000 to invest.

Where to find grants for small businesses?

If your business is based in the UK, you should check out the government’s Finance and support for your business tool available online. There you can enter information regarding the number of your employees, your industry, and the region of your operations. Based on that, the tool will show you grants that you are eligible for.

In addition to that, have a look at the table below to find more country-specific information regarding looking for small business grants.

England	On the website of the Local Enterprise Partnerships (LEP) network, you can find information on 38 local Growth Hubs that provide businesses with funding and support.
Scotland	Businesses in Scotland might be able to apply for business grants from Scottish Enterprise. Visit the Scottish Government’s Funding Opportunities to browse more than 600 funding options and small business grants.
Wales	Sources of funding for businesses operating in Wales include the Welsh Government, the UK Government, local authorities, and charities. Use the Welsh government’s Funding Locator online to find out more about available grants.