Rural Business Development Grant Scheme to Support Micro Enterprises Growth (UK)

The focus areas of the scheme are supporting the sustainability and growth of rural micro-businesses based in rural areas, providing small capital grants of between £500 and £7,500, assisting businesses that are actively trading commercially, encouraging employment and income growth, promoting environmental sustainability, and supporting businesses impacted by rising costs.

The Rural Business Development Grant Scheme is funded under the Department of Agriculture, Environment and Rural Affairs’ Tackling Rural Poverty and Social Isolation Programme and is administered by local councils. The grant can cover up to 50% of capital item costs, with maximum grants of £7,500 and capital projects costing between £1,000 and £30,000. Eligible applicants are micro-enterprises based in rural areas with fewer than 10 full-time equivalent employees and evidence of active commercial trading. Sports clubs and community groups can apply only for their commercial trading elements. The scheme excludes urban-based businesses, new startups, agricultural businesses undertaking mainstream activity, and projects not yet trading in farm diversification.

Eligible expenses include new capital equipment or machinery and setting up e-commerce websites, such as computers, laptops, software (excluding licenses), machinery including mobile machinery like forklifts, and e-commerce set-ups. Ineligible costs include second-hand equipment, servicing, maintenance works, building work requiring planning permission, motor vehicles, resource items such as marketing materials or training, and general business running costs like salaries or rent.

Applicants must attend a mandatory pre-funding workshop before applying. The grant funding is retrospective, reimbursing costs only after items are purchased, operational, and paid for. Awarded applicants will sign a Letter of Offer, attend a grant workshop, and must submit claims with proper invoices and bank payment evidence. Projects must be completed by March 23, 2026, with claims submitted by that date. Monitoring, audits, and post-project surveys are part of the programme to ensure proper use of funds and impact.

Applications are competitively assessed based on project need, economic impact, management strength, environmental sustainability, and prior funding. Only projects scoring at least 65 points out of 100 are considered for funding, with funding allocated based on rank order.

For more information, visit DAERA.