The thought of becoming your own boss is exciting, but starting a business takes more than just ambition—it also takes funding.
If you don’t have the capital to launch your dream venture, you might think your only option is finding a job, freelancing, or working a side hustle. Fortunately, in the UK, there are plenty of grants available to help budding entrepreneurs get started.
We’ve got everything you need to know about business grants for immigrants in the UK that can provide you with financial support, mentorship, networking opportunities, and training to help you build a sustainable business. Plus, when your new venture goes global, Remitly is here to help make international payments easy.
Understanding Business Grants in the UK
Finding funding is one of the biggest challenges that many immigrants in the UK face when they decide to start a business. Fortunately, business grants can offer a much-needed leg up. Let’s explore how these grants work and what they can do for you.
What are business grants?
Business grants are a type of funding designed to give businesses financial support without requiring them to pay the investment amount back. Unlike loans, which must be paid back with interest, or investments, which often require you to give up a share of the ownership of your business, grants provide financial support with no strings attached.
In the UK, grants are usually offered by government bodies, local councils, or private organisations. They’re often intended to encourage entrepreneurship, economic growth, or innovation. Some focus on specific industries, while others are aimed at underrepresented groups, including immigrants, women, or minority-owned businesses.
One downside is that grants are highly competitive and often come with strict eligibility criteria. Some require businesses to operate in certain sectors, create jobs, or meet sustainability goals. Others may offer partial funding, meaning recipients must contribute some of their own capital.
While securing a grant can take time and effort, it’s one of the best ways to get a financial head start without taking on debt.
The Benefits of Grants for Immigrant Entrepreneurs
Business grants can be a game-changer for immigrant entrepreneurs. Starting a business in the UK can be especially challenging as you have to navigate unfamiliar legal requirements, build a customer base, and access funding without an established credit history.
Grants provide financial support without the burden of repayment, making them a risk-free way to cover startup costs, hire staff, or invest in marketing. Some grants even offer mentorship, networking, or training opportunities, helping entrepreneurs build strong foundations.
In this way, grants can help you to turn your business ideas into reality, contribute to the UK economy, and create opportunities for your community.
Grant Eligibility Criteria for UK Immigrants
Whether you’re eligible to apply for a business grant in the UK will depend on a few key factors, including:
- Your visa status
- The type of business you want to start
- The industry that you’re planning on operating in
In general, immigrants on UK work visas, like the Skilled Worker, Innovator, Start-up, and Global Talent visas, as well as Spouse visas, are eligible to apply for business grants. Those with settled or pre-settled status under the EU Settlement Scheme also qualify.
Many grants also have specific business-related requirements. Some are limited to certain industries, such as technology, sustainability, or manufacturing, while others support small businesses, social enterprises, or minority-owned startups. Some grants even require businesses to create jobs, meet sustainability targets, or contribute to local economic growth.
Before applying, it’s essential to carefully check the specific criteria for the grant that you’re interested in to ensure your business aligns with its goals and requirements.
Top 5 Business Grants Available to Immigrants in the UK
Below, we’ve highlighted five of the best grant schemes that immigrants can apply for. These programmes offer financial support, mentorship, and resources that can help turn your business ideas into reality.
1. The King’s Trust
The King’s Trust offers the Enterprise Programme is designed to assist young people aged 18 to 30 in starting and growing their businesses. Participants receive a comprehensive support package that includes access to skills development, knowledge resources, networks, finance, and mentoring.
The programme also provides funding opportunities, like a £500 grant to test business ideas during the planning stage as well as a start-up grant of up to £5,000 and a start-up loan of up to £25,000 to help during the business launch and advancement stages.
Since its inception, the King’s Trust has supported over 90,000 young entrepreneurs in transforming their business ideas into reality, contributing significantly to the UK’s entrepreneurial landscape.
2. UnLtd
UnLtd is a UK-based foundation that supports social entrepreneurs: individuals who create businesses to tackle social challenges.
The organisation offers two main funding programs: the Start Your Venture Award, which provides early-stage social enterprises with up to £8,000 in funding, and the Grow Your Venture Award, which offers up to £18,000 to help established ventures expand. UnLtd also provides mentorship, expert guidance, and business development workshops to small business owners.
The foundation prioritizes diversity, aiming for 50% of its awards to go to Black, Asian, and minority ethnic entrepreneurs, as well as disabled entrepreneurs.
3. National Lottery Open Fund for Organisations
The National Lottery Open Fund for Organisations is aimed at helping creative entrepreneurs in Scotland develop and deliver projects that enrich the UK’s cultural scene and support organisational growth.
Eligible organisations can apply for funding between £1,000 and £100,000 for specific projects and productions, periods of research and development, longer-term programmes of work, and business and organisational development.
Applications are assessed against six key criteria, including quality and ambition, and applicants are required to demonstrate how their plans address these areas.
4. Innovate UK
Innovate UK is the UK’s national innovation agency. It’s dedicated to driving business-led innovation across all sectors and regions. The organisation offers a range of grants, loans, and support services to help businesses develop and commercialize new products, processes, and services.
Funding opportunities include Smart Grants, which support disruptive innovations across various industries, and sector-specific grants for areas like clean energy, healthcare, and AI. Plus, Innovate UK provides mentorship, business advice, and networking opportunities to help businesses scale.
5. National Lottery Heritage Fund
The National Lottery Heritage Enterprise Grants are designed to help community and commercial organizations across the UK rescue and transform neglected historic buildings and sites into commercially viable ventures.
Grants range from £250,000 to £5 million, aiming to bridge the “conservation deficit” – the gap between the cost of restoring a heritage asset and its end value after redevelopment. This funding not only preserves cultural heritage but also stimulates economic growth by bringing unused spaces back into productive use.
Applicants must demonstrate a clear plan for the sustainable commercial use of the restored asset and show how the project will deliver economic and social benefits to the community.
The Application Process for Business Grants
Applying for a business grant can be complicated, but the effort is worth it if it helps secure funding for your business. To improve your chances of success, it’s important to understand what information you might be required to apply and steps you might need to take.
Required Documents
Having the right documents ready when you want to apply for a business grant in the UK can make the process smoother. The exact requirements will vary by grant, but there are some common documents you’ll likely need to provide:
- Proof of immigration status: A copy of your visa, residence permit, or proof of settled/pre-settled status.
- Business plan: A detailed plan outlining your business idea, target market, revenue model, and growth strategy.
- Financial records: If your business is already operating, you may need to submit financial statements, tax returns, or proof of income.
- Grant-specific forms: Some grants require applicants to fill out custom forms, including funding proposals or impact assessments.
- Registration documents: If your business is already registered, you may need to provide proof of this, such as your company registration certificate or VAT details.
Preparing these documents in advance can help you submit a complete and compelling application.
How to Apply
The application process you’ll have to follow varies from grant to grant. That said, most follow a similar process. Below is a general guide to help you navigate the steps.
1. Research available grants
Start by finding grants that match your business type, industry, and immigration status. In addition to the resources we’ve provided above, government websites, local councils, and business support organisations are good places to look.
2. Check eligibility criteria
Before applying, carefully review the grant’s requirements, including the required visa status, business location, and any specific conditions like sustainability goals or job creation.
3. Prepare your documents
Gather your paperwork. This may include your visa or residence permit, business plan, financial records, registration documents, funding proposals, and impact statements.
4. Complete the application
Fill out the grant application form, ensuring all details are accurate and all necessary documents are attached. This is incredibly important as missing information can lead to delays or rejection.
5. Submit and wait for review
Once submitted, your application will go through a review process, which may require you to sit an interview or provide additional information further down the line. This process can take weeks or even months.
If approved, you’ll be notified of the next steps, including how and when funds will be distributed. If unsuccessful, don’t be discouraged—consider refining your application and applying again.
Tips for Successful Applications
There’s lots of competition for business grants in the UK, but there are a few tips and tricks you can use to improve your chances of securing the funding you need:
- Apply early: Many grants have limited funds and deadlines, so don’t wait until the last minute.
- Follow instructions carefully: Read the application guidelines thoroughly and provide all required details.
- Tailor your application: Customise your responses to match the grant’s goals and selection criteria.
- Create a strong business plan: A clear, well-structured plan shows funders that you’re serious about your business succeeding.
- Show impact: Explain how your business benefits the economy, local community, or industry you’re operating in.
Doing all of these things can help your application to stand out from the crowd and make it more likely that your business will receive a grant.
Alternatives to Grant Funding
The competitive nature of grant funding is highly competitive, which means that not every application will be successful. Fortunately, that doesn’t need to mean your business dreams. There are plenty of other ways to secure funding, from loans to investment opportunities.
Seed funding
Seed funding is an early-stage investment that helps startups develop their business before they generate revenue. Unlike grants, which don’t require repayment, seed funding typically comes from investors who receive equity in return.
The Seed Enterprise Investment Scheme (SEIS) is one UK organization that provides this type of funding. It’s a government initiative designed to help early-stage startups attract investment by offering tax incentives to investors.
It enables businesses to raise up to £250,000 in funding, making it a valuable resource for immigrant entrepreneurs aiming to establish or expand their ventures.
Loans
Business loans are a great way to get the funding you need to get started. There are several types to consider:
- Government-backed start-up loans: The UK government offers unsecured loans of up to £25,000 for new businesses, along with mentoring and support.
- Bank loans: Traditional lenders provide business loans, though they often require a strong credit history and a solid business plan.
- Microloans: Small, short-term loans from alternative lenders can be easier to access for new entrepreneurs.
Each loan type has different terms, so it’s important to compare options and choose one that fits your business needs.
Charitable support
Some UK charities and regional organisations in the UK offer financial assistance, mentorship, and resources to help immigrant entrepreneurs succeed. These groups focus on helping those who may not be able to access grants or other traditional types of funding.
- The Refugee Entrepreneurship Network: REN helps refugees and asylum seekers start businesses through funding, training, and networking opportunities.
- The Hatch Enterprise Foundation: Supports underrepresented entrepreneurs, including immigrants, with business incubators, mentoring, and funding opportunities.
- West of England Combined Authority: Provides funding and business support programmes for entrepreneurs in the west of England, including grants and advice for startups.
Most charitable organisations prioritise businesses that contribute to social good, so if your business aligns with their mission, this could be a great route to securing funding.
Conclusion
Starting a business in the UK as an immigrant might seem daunting, but it’s entirely possible when you have the right support.
From government-backed grants to charitable funding and investment schemes, there are plenty of opportunities to secure the financial backing you need. With a strong business plan and determination, you can turn your entrepreneurial dreams into reality.
Beyond funding, managing your business finances effectively is key to long-term success. Whether you’re paying international suppliers or sending profits back home, Remitly helps you wire money online safely, so you can focus on growing your business with confidence.
Frequently Asked Questions
How to get startup funding in the UK?
Startup funding in the UK can come from government grants, startup loans, angel investors, venture capital, crowdfunding, and bank loans. Grants are an excellent option as they’re non-repayable and you don’t have to give up any portion of ownership of your business.
Do you have to pay back business grants in the UK?
Business grants in the UK are typically non-repayable, meaning you don’t have to pay them back. Of course, that’s provided you adhere to the terms and conditions set by the grant provider. This is one of the major advantages of grants over loans.