Key takeaways

  • There is no general UK government grant for starting a business in 2026; most start-up funding from government is a loan, not a grant.
  • The King's Trust Enterprise programme offers 18 to 30 year olds a start-up grant of up to £5,000 and a Test My Business Grant of up to £500, according to GOV.UK.
  • Start Up Loans lend £500 to £25,000 per founder at a fixed 7.5% for applications from 1 April 2026, with 12 months of free mentoring.
  • Innovate UK paused its Smart Grants in January 2025; it still runs themed competitions listed on Innovate UK Business Connect.
  • GOV.UK's business finance and support finder listed 196 schemes when checked on 6 November 2026, filterable by grant, stage and region.
  • Most local and innovation grants fund a specific project, often need match funding, and pay out after you have spent the money.
  • No genuine government grant asks you to pay a fee upfront to receive it.

There is no general UK government grant for starting a business in 2026. What is genuinely available is narrower: King’s Trust grants for people aged 18 to 30, local council and Growth Hub grants for specific projects, Innovate UK competitions for innovative firms, and the government-backed Start Up Loan. This page sets out each one with the figures from official sources, checked on 6 November 2026.

Is there a government grant to start a business?

No, not one that any new business can apply for. The government’s main start-up product is the Start Up Loan, which you repay with interest. Business.gov.uk points people starting out to that loan, not to a grant.

Grants that do exist are targeted. They usually depend on your age, location, sector or a specific project, and most are competitive.

What start-up funding is available?

This table summarises the main routes and whether you repay them.

SchemeWho it is forRepayable?
King’s Trust start-up grantAges 18 to 30 on the Enterprise programmeNo
Test My Business GrantAges 18 to 30, testing an ideaNo
Local council and Growth Hub grantsBusinesses in that area, often for a projectUsually no
Innovate UK competitionsInnovative firms with a defined projectNo
Start Up LoansFounders 18+, trading up to 60 monthsYes, at 7.5%
SEIS investmentCompanies raising equityNo, but you give up shares

King’s Trust grants for 18 to 30 year olds

The King’s Trust Enterprise programme is the main start-up grant open to individuals. GOV.UK, in a page last updated on 20 June 2025, says eligible people can get start-up funding of up to £30,000, made up of:

  • a grant of up to £5,000
  • a loan of between £500 and £25,000
  • a separate Test My Business Grant of up to £500

To be eligible you must:

  1. be on the King’s Trust Enterprise programme
  2. be aged 18 to 30
  3. plan to start a business within the next 12 months
  4. have the right to work in the UK, with the business operating in the UK
  5. own, or plan to own, at least 50% of the business

You cannot apply if you have been trading for more than a year. GOV.UK says no funding is guaranteed. The programme also gives workshops and one-to-one mentoring.

Local council and Growth Hub grants

Local grants are the most common source of start-up grant money, but they vary by area and change often. They are usually run by councils, combined authorities and the Growth Hubs in England, and by Business Gateway in Scotland, Business Wales and Invest NI.

These grants typically:

  • pay for a named item, such as equipment, a website or energy efficiency work
  • cover only part of the cost, with you funding the rest
  • pay after you have bought the item and sent invoices

Use GOV.UK’s business finance and support finder, which listed 196 schemes on 6 November 2026, and filter by grant and your region. See small business grants by region for the four nations.

Innovate UK grants

Innovate UK grants are for innovative projects, not general start-up costs. Innovate UK paused its open Smart Grants scheme in January 2025, and we found no official announcement that it has reopened.

It still runs themed competitions. Innovate UK Business Connect listed opportunities with closing dates from October 2026 into early 2027 when we checked. GOV.UK’s Find a grant service also lists government grants with eligibility checks. See Innovate UK grants for how competitions work.

Start Up Loans: the main alternative

If no grant fits, the Start Up Loan is the government-backed option for new founders. According to Innovate UK Business Connect’s summary of the British Business Bank scheme:

  • you can borrow £500 to £25,000 per founder, up to £100,000 per business
  • the rate is fixed at 7.5% a year for applications from 1 April 2026
  • you repay over one to five years
  • you must be 18 or over, UK resident and trading for up to 60 months
  • you get 12 months of free mentoring

It is a personal loan, so you are liable for it even if the business fails.

Which applies to you?

  • If you are 18 to 30 and not yet trading, start with the King’s Trust Enterprise programme.
  • If you need a specific item, such as equipment, look for a local council or Growth Hub grant.
  • If your business is built on a new product or technology, check Innovate UK competitions.
  • If you need general start-up cash, compare a Start Up Loan with your own savings.
  • If you are setting up a company to raise investment, read SEIS and EIS for founders.

What to do now

  1. Search the GOV.UK finder for grants by region and stage.
  2. Contact your local Growth Hub or enterprise agency.
  3. Get quotes for the item you want funded before you apply.
  4. Write a short business plan with costs and cash flow.
  5. Do not buy anything before a grant offer letter, unless the scheme allows it.
  6. Ignore anyone asking for a fee to release a grant.

For writing the bid itself, see how to write a grant application.

Frequently asked questions

Can I get a government grant to start a business?

Not a general one. Grants exist for specific groups, such as King’s Trust grants for 18 to 30 year olds, and for local or innovation projects. The main national start-up product is the Start Up Loan.

How much is the King’s Trust start-up grant?

GOV.UK says up to £5,000 as a grant, plus a Test My Business Grant of up to £500, for people aged 18 to 30 on the Enterprise programme.

What is the Start Up Loan interest rate in 2026?

A fixed 7.5% a year for applications from 1 April 2026, on loans of £500 to £25,000 repaid over one to five years.

Are Innovate UK Smart Grants still open?

Innovate UK paused Smart Grants in January 2025 and we found no official notice of a reopening. Themed competitions continue.

Where can I search for start-up grants?

Use GOV.UK’s business finance and support finder and the Find a grant service, then check your local Growth Hub or enterprise agency.

Sources

Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance on 6 November 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.