Business Funding: Underrated Grants That Are Really Worth It
Let’s be honest — when you’re running a business, every bit of cash helps. But beyond the classic bank loans and investor pitches, there’s a whole world of funding options out there that fly under the radar. Seriously, some of them are surprisingly generous… and barely anyone talks about them.
So, if you’re tired of hearing the same old advice — “raise capital”, “talk to your bank”, “bootstrap harder” — this one’s for you. Here’s a rundown of lesser-known business grants and funding programs that, in my opinion, really deserve more attention.
1. Local authority grants (yes, they exist… and they can be gold)
Most people overlook local councils when it comes to business help. Big mistake. I’ve seen small cafés in Sheffield get £3,000 to upgrade their outdoor seating. One guy I met at a networking event in Birmingham got a £5,000 grant just for setting up energy-efficient lighting in his warehouse.
Sure, these grants aren’t always heavily promoted. You have to dig a bit — check your local council’s website, subscribe to their business newsletters, or (pro tip) call the business support office directly. Sometimes, they’ll even help you fill out the forms.
2. Innovation grants: not just for tech geeks
The word “innovation” sounds intimidating. Like, unless you’re building AI or flying cars, it doesn’t apply to you, right? Not true.
UK Innovate offers funding for any business developing *new or improved* products, services or processes. That could be a new app, a smarter logistics process, or even a fresh take on an old business model. One bakery in Leeds got funding for rethinking their supply chain with local farmers. No robots involved.
3. Start Up Loans: technically a loan, but with real perks
Okay, this one’s a loan, not a grant — but hear me out. Start Up Loans from the British Business Bank offer up to £25,000, with a fixed interest rate (currently 6%) and no fees. Plus, you get free mentoring. That alone is worth its weight in gold if you’re new to running a business.
I know someone who used this to open a mobile bike repair service. Two years later, he’s got a team of three and a waiting list. Not bad.
4. Apprenticeship support for SMEs
If you’re hiring — or even thinking about it — the government offers real support for taking on apprentices. We’re talking £1,000 grants, full or partial funding for training, and sometimes even tax incentives.
It’s not just for construction or trades, by the way. Marketing agencies, cafés, beauty salons — anyone can benefit. And let’s be honest, having a motivated apprentice who’s learning the ropes can be a serious boost to productivity.
5. Grants for green improvements (and they’re getting serious)
Sustainability is a hot topic, and there’s funding behind it. Whether you’re switching to LED lighting, improving insulation, or investing in electric delivery vans, there might be money available to help you make the shift.
These schemes change often, but they’re out there. For example, the Low Carbon Workspaces grant in certain parts of the UK can cover up to £6,750 for green upgrades. That’s not pocket change.
6. Don’t forget sector-specific grants
Some grants are laser-targeted. Hospitality, creative industries, social enterprises — each of these sectors has its own pool of funding, often from specialised organisations or regional development funds.
You’d be amazed what’s out there. I once helped a friend running a small theatre group get funding for marketing campaigns *and* new lighting rigs. Total game-changer.
How to find these hidden gems?
It’s not always easy — I won’t lie. But it’s doable. Here’s where I recommend starting:
- Your local council or Growth Hub
- Gov.uk’s finance and support for your business tool
- Business support newsletters (sign up for a few, even if they’re a bit dull)
- Talk to your accountant — seriously, some know about funding you’ve never heard of
Final word: don’t assume you’re not eligible
So many business owners — especially solo founders or tiny teams — assume grants are for someone else. Big companies. Tech startups. People who know how to write 40-page applications.
That’s just not true. If you’ve got a real project and can explain it clearly, you’ve got a shot.
Is it a bit of work? Yeah.
Is it worth it? Absolutely.
So, go get that money. Your business deserves it.