Business grants in Scotland

Business grants in Scotland come mainly from three enterprise agencies, each covering its own part of the country, with Business Gateway and councils supporting start-ups and small firms. Scottish Enterprise’s main grants are for projects of at least £1 million.

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Which agency covers your business

Scotland splits economic development by geography. Scottish Enterprise covers most of the central belt, the north east and Tayside. Highlands and Islands Enterprise covers the Highlands, the islands, Moray and Argyll. South of Scotland Enterprise covers Dumfries and Galloway and the Scottish Borders. Each runs its own grants and its own subsidy schemes and decides on applications from businesses in its area. A business with sites in more than one area talks to the agency where the project will take place, because that is where the investment, the jobs and the conditions attached to the grant will sit.

Below the agencies, Business Gateway gives start-up and small business support through local offices run by the councils. Scottish Enterprise’s own funding is aimed at established businesses with plans to grow, and it sends new and micro businesses to Business Gateway. The Scottish Government’s Find Business Support site lists schemes from all of them in one search.

UK-wide schemes apply in Scotland too. Innovate UK competitions are open to Scottish businesses, and the UK export support team, UK Export Finance and the British Business Bank cover the whole UK. Our grant finder lists the central government grants open today, and Swoop’s platform matches businesses with grants as part of a funding search.

The funders

Scottish Enterprise
Research and development grants, a capital grant for investment projects and the Smart Scotland feasibility grant, which is on hold. Also runs the Scottish Loan Scheme and its own investment funds, and Scottish Development International for exporters.
Highlands and Islands Enterprise
Grants for capital investment, innovation and young businesses in its area. It publishes every approval each quarter, which shows the size and type of awards it makes.
South of Scotland Enterprise
Grants under its economic development scheme, plus programmes such as Pathways, which gives micro grants of up to £1,000 to people exploring starting a business. It publishes its grant awards each quarter.
Business Gateway and councils
Advice for start-ups and small firms, and local grants that each council funds and sets its own rules for.

Scottish Enterprise grants at November 2026

Research and development grantCapital grantSmart Scotland
What it fundsA significant innovation projectCapital investment that raises productivity and wagesFeasibility studies
Rate for a small business35% to 50% working aloneUp to 40%Up to 70%
Rate for a medium business35% to 50% working aloneUp to 30%Up to 60%
SizeGrants from £250,000; projects of at least £1 million of company spendGrants from £250,000; projects of at least £1 million of company spendUp to £100,000 over 6 to 18 months
StatusBy enquiry; discretionaryBy enquiry; discretionaryOn hold; a new fund is due in late autumn 2026
Large companies can receive 25% to 40% of research and development costs and up to 20% of capital costs. Regional Selective Assistance has closed to new enquiries and the capital grant now covers investment projects.
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Fair Work and net zero conditions

A Scottish Enterprise grant comes with conditions on how you run the business. Companies awarded funding must meet the Scottish Government’s approach to Fair Work and net zero, which includes paying at least the real Living Wage to every employee over 16, apprentices included, and having a credible plan to cut operational greenhouse gas emissions to net zero by 2045 at the latest.

The real Living Wage is set by the Living Wage Foundation and is higher than the statutory National Living Wage, so check your payroll against it before you apply. Scottish Enterprise also says work that has already started, or where commercial contracts are already in place, is not eligible, so the enquiry comes before the purchase order.

  • Real Living Wage for every employee over 16
  • A plan to reach net zero by 2045
  • No work started before approval

Smaller businesses and energy projects

If your project is smaller than Scottish Enterprise’s thresholds, start with Business Gateway and your council. Highlands and Islands Enterprise and South of Scotland Enterprise work with smaller businesses in their areas, and their published approval lists show awards well below £250,000.

For energy projects, Business Energy Scotland runs the SME Loan and Cashback Scheme: loans of up to £100,000 at 0%, with cashback of 75% of costs, up to £20,000 for energy efficiency and £10,000 for renewable heat, while funds last. The Boiler Upgrade Scheme does not apply in Scotland. More on energy efficiency grants.

Every Scottish Enterprise grant needs match funding for the rest of a project of at least £1 million, and a lender will look at the grant offer when it assesses a loan for the balance. See business loans, asset finance and commercial mortgages.

Questions people ask

Who gives business grants in Scotland?

Three enterprise agencies, each for its own area: Scottish Enterprise, Highlands and Islands Enterprise and South of Scotland Enterprise. Business Gateway and the councils support start-ups and small firms, and UK-wide schemes such as Innovate UK competitions are open to Scottish businesses. Find Business Support lists schemes from all of them.

Is Regional Selective Assistance still available?

No. Scottish Enterprise says Regional Selective Assistance is closed to new enquiries. Its capital grant covers investment projects of at least £1 million of company spend, with grants from £250,000 at up to 40% for a small enterprise, 30% for a medium one and 20% for a large one.

Is Smart Scotland open?

Scottish Enterprise says it is not accepting new applications for Smart Scotland and that a new fund will be launched in late autumn 2026. Its past terms paid up to 70% of eligible costs for small enterprises and 60% for medium ones, up to £100,000, for feasibility studies of 6 to 18 months.

Can a start-up get a grant in Scotland?

Start with Business Gateway, which councils run, and your council’s own schemes. South of Scotland Enterprise’s Pathways programme gives micro grants of up to £1,000 to people exploring starting a business. Scottish Enterprise’s grants are for established businesses. See funding a start-up.

Do Scottish Enterprise grants have conditions?

Yes. Companies awarded funding must meet the Scottish Government’s approach to Fair Work and net zero, including paying at least the real Living Wage to all employees over 16, apprentices included, and having a credible plan to reach net zero operational emissions by 2045. Work must not have started, and commercial contracts for it must not already be in place, when you apply.

Finance is subject to status and to the lender’s terms. A personal guarantee makes you liable for the company’s debt if it does not repay, and it can be enforced against your own assets, including your home. Nothing here is a personal recommendation.

Grants

Research and development grants

R&D grants, R&D tax relief, and how one affects the other since April 2024.

Read more →

Energy efficiency grants for business

Heat pump and chargepoint grants, Scotland’s cashback loans and Wales’s green loans.

Read more →

Business grants in England

Central government, mayoral authorities, councils and growth hubs, and where to look.

Read more →

How do I write a grant application?

Scoring, the project plan, budgets, match funding, additionality and a checklist.

Read more →
All business funding

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