Applications open for Young Business Capital Grant Program (UK)

Young Business Capital Grant Fund aims to stimulate an increase in productivity, innovation and employment in the Highlands and Islands through capital investment in young businesses and social enterprises who have been trading for less than five years.

They are looking to support projects that help businesses and social enterprises grow, for example through investment enabling new market entry, enabling an increase in sales or quality employment opportunities.

Funding Information

• The funding is a non-repayable grant of up to £75,000 which will cover between 20% and 50% of the total cost of a project.
• The minimum grant award is £10,000.
• Projects with a total cost of £20,000 or less are therefore unlikely to be eligible.

Eligible Expenses

• The funding can be used towards capital investment, including but not limited to, purchasing equipment, fixtures, fittings and installation costs. You will need to demonstrate that the funding will help to grow and develop your organisation. Suggested uses include:
  • Development of new business premises
  • Expansion or upgrading business premises
  • Investment in new technology and capital equipment e.g. manufacturing equipment, machinery, tools or associated infrastructure.

Ineligible Expenses

• The funding can NOT be used for:
  • Projects that have already started at the time of submitting an expression of interest. Any costs that have been invoiced to the applicant or paid by the applicant prior to submitting an expression of interest will not be eligible for funding.
  • The purchase of electric vehicles including bikes and cars.
  • Housing upgrades or developments.

Eligibility Criteria

• To be eligible for the grant your organisation must:
  • Be a small or medium-sized enterprise (SME) as defined by the European Commission. Enterprises that are part of a group (e.g. they are owned/controlled by another enterprise with a 25% or more stake in them, or they own/control one or more other enterprises with a holding of 25% or more) are eligible if the whole group meets the qualifying criteria for an SME. If you are unsure, please consult your accountant or legal adviser or contact them for further guidance.
  • Have been trading for less than 5 years (start date determined by date of incorporation or registered with HMRC if an unincorporated organisation).
  • Own its own premises in the Highlands and Islands or have written permission from your landlord to make changes to the premises and seek planning permission from your Local Authority to implement the works detailed in your application. Evidence should be provided along with planning permissions and any other building consent required.
  • Applicants from most sectors can apply but there are exceptions.
  • Undertake its business activity in the Highlands and Islands and be liable for non-domestic rates.

Ineligible Applicants

• The following organisations are NOT eligible for this fund:
  • Individual enterprises, or those who are part of a group, that are large enterprises, are not eligible (definition of a large enterprise noted above).
  • Businesses and social enterprises operating primarily in the retail, food and beverage service or personal services sector e.g. shops, pubs, cafes, restaurants, hairdressers, beauticians, alternative therapist etc. or business services sector e.g. lawyers, accountants etc.
  • Accommodation and other types of businesses operating from an applicant’s own home e.g. B&B or AirBnB type businesses are not eligible.
  • Organisations which are primarily core funded by the public sector are not eligible (core funding does not include project funding and service level agreements with the public sector).
  • Religious and political organisations.

For more information, visit Highlands and Islands Enterprise.