Business expansion and growth grants are non-repayable funding to help established UK businesses scale — investing in equipment, premises, jobs and new markets. They’re available through the business support finder, growth hubs, councils and devolved programmes, are often tied to job creation and other growth outcomes, usually require match funding, and combine well with finance for ambitious projects. Quantify your growth outcomes to win.
Key takeaways
- Expansion grants fund capital investment, job creation and scaling operations.
- Many are tied to growth outcomes such as jobs and investment.
- Sources include the business support finder, growth hubs, councils and devolved programmes.
- Regional growth funding is common — check local sources too.
- They usually require match funding and combine well with finance.
- Quantify jobs, investment and productivity to strengthen your application.
For an established business ready to scale, expansion and growth grants can reduce the cost of investing in the equipment, premises, people and markets that growth requires. Unlike support aimed at new founders, these grants target trading businesses with credible plans to grow — making them a natural fit for firms with a track record. This guide explains what expansion grants fund, where to find them, who qualifies, and how to combine grants with finance to scale.
What are expansion grants?
Business expansion grants are non-repayable funding to help established businesses grow — for example by investing in equipment or premises, creating jobs, entering new markets, or scaling operations. They are offered by government, devolved administrations, local bodies and agencies, and target growth outcomes the funder cares about. As with all grants, they come with conditions on how the funding is used and what it must achieve.
What growth grants fund
Common eligible costs and purposes include:
| Purpose | Examples |
|---|---|
| Capital investment | Equipment, machinery, premises. |
| Job creation | Investment that supports new employment. |
| Productivity | Technology and process improvements. |
| Market entry | Expansion into new markets or regions. |
The eligible costs depend on the scheme and the outcomes it targets.
The job-creation link
Many growth grants are tied to job creation, because employment is a common outcome funders want to support. A grant may be linked to the number of jobs your expansion will create, or to investment that supports employment. If your project will create jobs, quantify them clearly — it is often central to both eligibility and a strong application.
Who is eligible?
Eligibility varies by scheme and may depend on your size, sector, location, growth plans and the jobs or investment involved. Many growth grants are aimed squarely at established, trading businesses with credible expansion plans — which is good news for firms with a track record. Check each scheme’s criteria, and ensure your project delivers the growth outcomes it targets.
Where to find them
Check the government’s business support finder, your local growth hub, your local authority, devolved programmes, and relevant sector bodies. Regional growth funding is particularly common, so local sources are well worth checking alongside national ones — a growth hub conversation is a sensible, free starting point.
Match funding and combining with finance
Many growth grants require match funding, covering only part of a project’s cost. For ambitious expansion, a grant can be combined with a loan or government-backed finance to fund the rest, subject to the rules and any subsidy limits. A coordinated package — a grant for an eligible part, your own funds, and finance for the rest — often funds growth more effectively than any single source alone.
Grants are competitive and slow; finance is faster and more flexible. For timely or larger expansion, many businesses use a grant where they can and finance for the rest.
How to win an expansion grant
- Find growth grants that genuinely fit your business and plans.
- Align your project with the funder’s growth objectives.
- Quantify the outcomes — jobs, investment, turnover, productivity.
- Evidence your case with realistic costings, a credible plan and supporting proof.
- Confirm your match funding and submit complete and on time.
The bottom line
Business expansion and growth grants help established UK businesses scale by reducing the cost of investing in equipment, premises, people and markets. They’re often tied to job creation and other growth outcomes, usually require match funding, and combine well with finance for ambitious projects. Find well-matched grants through national and regional sources, quantify your growth outcomes, and consider a coordinated funding package to turn your expansion plans into reality.
Frequently asked questions
What are business expansion grants?
Business expansion grants are non-repayable funding to help established businesses grow — for example by investing in equipment or premises, creating jobs, entering new markets, or scaling operations. They are offered by government, devolved administrations, local bodies and agencies, and target growth outcomes.
What do growth grants fund?
They commonly fund capital investment (equipment, machinery, premises), job creation, productivity improvements, and sometimes market entry or innovation tied to growth. The eligible costs depend on the scheme and the outcomes it targets.
Who is eligible for expansion grants?
Eligibility varies by scheme and may depend on your size, sector, location, growth plans and the jobs or investment involved. Many growth grants are aimed at established, trading businesses with credible expansion plans. Check each scheme’s criteria.
Where can I find growth and expansion grants?
Check the government’s business support finder, your local growth hub, local authorities, devolved programmes and sector bodies. Regional growth funding is common, so local sources are particularly worth checking alongside national ones.
Do expansion grants require match funding?
Often, yes. Many growth grants cover part of a project’s cost, with the business funding the rest. Confirm the match-funding requirement and that you can afford your share, possibly with finance, before applying.
Are growth grants linked to creating jobs?
Many are. Job creation is a common outcome funders seek, so grants may be tied to the number of jobs your expansion will create, or to investment that supports employment. Quantifying job outcomes can strengthen an application.
Can I combine an expansion grant with a loan?
Yes, commonly. A grant might cover part of an expansion project, with a loan or government-backed finance funding the rest, subject to the rules and any subsidy limits. This is a practical way to fund ambitious growth.
How competitive are expansion grants?
They can be competitive, as growth funding attracts demand. A well-matched application that quantifies the growth outcomes — jobs, investment, productivity — and demonstrates deliverability stands the best chance.
How long do expansion grants take?
As with other grants, expect an application and assessment process, sometimes in rounds, so they take longer than loans. Plan ahead and do not rely on a grant for an urgent growth need.
Are expansion grants taxable?
The tax treatment depends on the grant’s nature and purpose — some are taxable as income, others (such as certain capital grants) are treated differently. Confirm with your accountant, as it affects the net value.
Can a growth hub help me find expansion funding?
Yes. Growth hubs offer free local support and can signpost relevant growth grants and other funding, and advise on combining grants with finance. They are a sensible first step for an expanding business.
What evidence supports an expansion grant application?
Realistic costings, a credible growth plan, evidence of demand, quantified outcomes (jobs, investment, turnover), and supporting proof such as quotes or market data. A strong business case lifts your application above competitors.
Should I use a grant or finance to expand?
If a suitable grant is available and you can meet the criteria and match funding, it reduces the cost of growth. But grants are competitive and slow, so finance — including government-backed finance — may be more practical for timely or larger expansion. Many businesses use both.
Can I fund a larger expansion with a coordinated package?
Yes. A coordinated package — a grant for an eligible part, your own funds, and a loan or government-backed finance for the rest — often funds ambitious expansion more effectively than any single source alone.
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