Reviewed by Omer Farooq, Chartered Certified Accountant (ACCA). This guide is general information, not financial advice. Funding programmes change frequently, so check every official scheme page before applying.
Grants, loans, reliefs and investment are different
A grant is normally non-repayable but tied to a defined project, conditions and evidence. A government-backed loan must be repaid. Tax relief changes a company's tax position when statutory rules are met. SEIS and EIS are investor tax-incentive schemes that can help qualifying companies raise equity. A funding plan may use more than one route, but each carries different obligations.
Main funding routes to check in 2026
1. Innovation competitions and Innovate UK
Innovate UK runs competitive opportunities for projects developing significantly improved products, processes or services. Competition scope, eligible costs, funding rate and deadlines vary. Search current opportunities and read the competition guidance before preparing an application.
2. Government-backed Start Up Loans
The official Start Up Loans programme currently offers eligible applicants between £500 and £25,000 at a fixed 7.5% annual interest rate, over one to five years, with mentoring and no application or setup fee. It is a personal loan for business purposes and remains subject to assessment.
3. R&D tax relief
For accounting periods beginning on or after 1 April 2024, HMRC's merged R&D expenditure credit and enhanced R&D intensive support replaced the earlier schemes. A qualifying project must seek an advance in science or technology by resolving scientific or technological uncertainty. Claims need accurate cost analysis and technical evidence.
4. SEIS and EIS
SEIS and EIS offer tax reliefs to qualifying investors who buy new shares in eligible companies. HMRC's 2026 statistics confirm the SEIS company investment limit is £250,000. Advance assurance may give prospective investors an indication of whether a planned share issue is likely to qualify, but it is not a guarantee of final relief.
5. Regional and local support
Regional and local schemes often focus on skills, digital adoption, sustainability, exports or specific places. Use the official GOV.UK Find a Grant service and your local business-support organisation. Scotland, Wales and Northern Ireland operate their own support ecosystems.
6. Sector and theme-specific opportunities
Some programmes focus on manufacturing, creative industries, net zero, technology, research, exports or workforce development. The strongest applications start with a real project need rather than trying to reshape the business around a grant.
Common eligibility questions
- Is the business size, sector and location eligible?
- Does the project begin after the permitted start date?
- Is match funding required and genuinely available?
- Are the proposed costs eligible?
- Can you evidence demand, delivery capacity and outcomes?
How to strengthen an application
- Define the project, outcomes, milestones and budget clearly.
- Answer every eligibility and scoring criterion directly.
- Use realistic forecasts that reconcile with your accounts.
- Explain why public support is needed and what changes because of it.
- Leave time for approvals, evidence and submission checks.
Article FAQs
Are UK grants free money?
Most grants are non-repayable, but they are usually restricted to an agreed project and may require match funding, evidence and reporting.
Can a new business get a grant?
Some schemes support startups or pre-revenue businesses, while others require trading history. Eligibility varies by scheme.
Do R&D tax credits need to be repaid?
R&D tax relief is a Corporation Tax relief, not a loan. A claim must meet HMRC rules and may be reviewed.
How long do applications take?
Small local schemes may decide within weeks, while larger innovation competitions can take several months. Always check the official timetable.