Grant

Also called Grant funding, Innovate UK

Money you do not repay and do not give equity for. Competitive, slow, and rarely for what you actually want to spend it on.

What it means

A grant is funding awarded for a defined purpose, usually against specific outcomes and conditions, with no repayment and no equity given up.

UK sources include Innovate UK, local growth hubs, combined authorities, sector bodies and some charitable trusts.

Why it matters

It is the only genuinely non-dilutive, non-repayable funding most businesses will see, and for research and development it can be substantial.

The costs are real though: the application takes serious time, most are match-funded so you need your own money too, and payment is often in arrears against evidenced spend.

What it looks like in practice

Start with your local Growth Hub — they know what is open regionally and it is free.

Read the eligibility and the assessment criteria before writing anything. Most rejected applications are rejected for not answering the question asked.

Budget for the cash flow: if the grant pays in arrears, you fund the work first.

What to watch out for

Consultants charging significant fees on a contingent basis for applications you could make yourself.

Conditions that persist after the money arrives — reporting, subsidy control limits, clawback if the project changes, restrictions on where the resulting IP can be exploited.

Subsidy control rules cap what a single business can receive over a period.

Where to get proper advice

Your local Growth Hub and the GOV.UK business finance support finder. Innovate UK's own guidance for R&D competitions is detailed and worth reading in full.