Business loans and grants in Wales for limited companies

Most public money for Welsh limited companies comes as loans, not grants. The Development Bank of Wales lends £1,000–£10m, Business Wales is the free route to Welsh Government grants, and council grants now come from the Local Growth Fund. Many grants open in short rounds, so each scheme below shows its status, checked on 12 October 2026.

Worth knowing: grants in Wales usually cover only part of a project and pay out after you've spent the money. So the real question is how you'll pay suppliers before the grant arrives. The SMART Capital Equipment Fund, for example, asks for evidence of defrayed (already paid) spend before the final claim.

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Which Welsh schemes are open, closed or run in rounds

Development Bank of Wales loans and Start Up Loans are open all year. Most grants open in short rounds, and several closed in 2026, including every grant funded by the UK Shared Prosperity Fund.

Welsh companies can also apply for UK-wide small business grants, such as Innovate UK competitions, on the same terms as the rest of the UK.

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Business Wales is the place to start for grants

Business Wales, the Welsh Government's free business-support service, runs the Finance Locator and can put you in touch with an adviser who knows which rounds are open. Call the helpline on 03000 6 03000 (10:00–16:00, Monday to Friday) or start from its Finding Finance page.

Most grants are for a specific project rather than day-to-day running costs, and each one sets its own conditions. The Development Bank of Wales lists the usual ones:

• Size: many grants are only for small and medium-sized businesses (under 250 employees), or smaller.
• Sector: many grants are for one industry.
• Purpose: the project has to meet the scheme's aim, such as jobs, productivity, or lower carbon.
• Location: some grants only cover one county or town.
• Age: some are for start-ups, others for businesses that have traded for a few years.

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SMART Capital Equipment Fund grants are £50,000–£250,000

The SMART Capital Equipment Fund gives Welsh businesses grants of £50,000–£250,000 towards new equipment that raises productivity, usually up to 50% of eligible capital costs. The latest call closed on 25 September 2026, with decisions due in the week commencing 26 October 2026.

Projects need eligible capital costs of at least £100,000, and the equipment must be in Wales. The fund pays for productivity-raising machinery, automation, and advanced manufacturing kit. It won't pay for working capital, vehicles, property, or assets bought on hire purchase or leasing. Successful companies must show evidence of defrayed spend by 31 January 2027 and report results by 31 March 2028. Watch Business Wales for the next call.

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Council grants now come from the Local Growth Fund

The UK Shared Prosperity Fund grants that Welsh councils ran until March 2026 are closed. Council business grants now come from the Local Growth Fund, a £546.5m programme for 2026–2029, and each council sets its own scheme and dates.

In 2026–27, four councils lead the fund for their regions: Rhondda Cynon Taf, Swansea, Ceredigion, and Gwynedd. The Welsh Government doesn't take project bids from individual businesses, so you apply to your council's scheme when it opens. Ceredigion's Cynnal y Cardi Business Capital Grant, for example, offered £2,500–£50,000 for capital projects between 1 July and 14 August 2026, and is now closed. If an older page lists a council grant, check the council's own site before you plan around it.

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Start-up grants are mostly for individuals

Welsh start-up grants are mostly paid to individuals starting out, not to existing companies. The Young Person's Start Up Grant gives up to £2,000 to people under 25 and is available until 2027, while the Barriers to Start-Up Grant for over-25s has closed.

If you've already set up a limited company, the more realistic public options are Development Bank of Wales loans and the project grants above.

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How do you fund your share of a grant?

Most grants pay part of the cost, and you fund the rest. Many also pay after you've paid your suppliers, so you need the whole amount up front, not just your share.

Here's an illustrative example. Say your company wins a 50% grant towards a £100,000 equipment project. The grant covers £50,000 and your company covers the other £50,000. But you usually pay the full £100,000 to suppliers first, then claim the grant back with proof of payment.

You have three main ways to fund your share and the timing gap:

Grants don't have to be repaid and loans do, so it's worth seeing how grants and loans compare before you commit to either.

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The Development Bank of Wales lends rather than gives grants

The Development Bank of Wales doesn't offer grants, but its loans can be combined with them. It lends £1,000–£10m to businesses based in Wales or willing to relocate, with micro loans of £1,000–£100,000 over 1–10 years.

Its main options for a limited company are:

• Micro loans: £1,000–£100,000 over 1–10 years at a fixed rate, with no arrangement fee on micro loans up to £100,000.
• Larger loans: up to £10m over terms of up to 15 years.
• Green Business Loan Scheme: £1,000–£1.5m for energy-saving projects, for businesses trading at least two years with one set of filed accounts.
• Wales Tourism Investment Fund: loans of £100,000–£5m over 10–15 years for standout tourism projects, as listed in the funds it manages.

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Start Up Loans are personal loans at 7.5%

Start Up Loans are government-backed, unsecured personal loans of £500–£25,000 at a fixed 7.5% a year, repaid over one to five years. You borrow as an individual, so you're personally liable, and your business must have been trading for less than five years.

You need to live in the UK, be 18 or over, and pass a credit check. There's no application fee or early repayment fee, and you get up to 12 months' free mentoring. Start Up Loans sit alongside other government-backed business loans, and our guide to start-up business loans covers the private options for a new company.

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How to apply for a business grant in Wales

Check the conditions first, then get written approval before you buy anything, because spending committed before approval usually can't be claimed. Applications that win show a clear plan, full costings, and how you'll fund your share.

1. Check you meet every condition. Read the scheme rules and ask a Business Wales adviser if anything is unclear.
2. Wait for written approval. Don't order, sign for, or pay a deposit on anything before the funder agrees.
3. Prepare the project detail. Include a project description, the benefits, a work plan with full costings, and your team's experience.
4. Show your share and your cash flow. Explain where your match funding comes from and how you'll pay suppliers before the grant arrives.
5. Declare other public support. Many schemes ask about other public funding you've received, and awards are subject to subsidy control rules.

If your application is turned down, ask the funder for feedback. Business Wales lists the usual reasons: the project doesn't fit the scheme, claims aren't backed by facts, or you can't prove your share of the funding.

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When a loan from a lender like iwoca makes sense

A private loan can help when a grant pays in arrears, when you need to fund your share quickly, or when no grant fits. It can cost more than Development Bank of Wales finance, so compare the total cost of both, and check the grant's rules allow borrowed match funding.

iwoca isn't part of any Welsh or UK government scheme. We're a private lender that has funded 100,000+ businesses and lent £5bn+ in the UK. An iwoca Flexi-Loan can fit a grant project if:

• You need to pay suppliers before the grant is paid.
• You need your share of the project funded quickly.
• No current grant or public loan fits your project.

A Flexi-Loan is for UK limited companies. You can borrow £1,000–£1m over terms of up to five years, and get a decision within 24 hours. It's a business loan with flexible repayment options: you draw what you need, and you can repay early with no penalty when the grant arrives. Every new Flexi-Loan needs a personal guarantee from at least one director, so make sure you're comfortable with that commitment.

Before you apply for any finance, the free iwoca Credit Compass shows your Equifax business credit score plus four more scores, with areas to improve.

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Frequently asked questions

Can I combine loans and grants?

Yes, you can usually combine a grant with a loan. The Development Bank of Wales says its loans can be combined with grants from other providers to complete a funding package.

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Does the Development Bank of Wales give grants?

No. The Development Bank of Wales doesn't offer business grants. It lends and invests, and points businesses to Business Wales for grants.

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Can I get funding to move my business to Wales?

Yes, in some cases. The Development Bank of Wales lends to businesses willing to relocate to Wales, and it can cut the interest rate on its micro loans by up to 2% for businesses in, or moving to, a Welsh Enterprise Zone.

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Is a business grant free money?

A grant doesn't have to be repaid, but it isn't free of conditions. It usually covers only part of the cost, often pays after you've spent the money, and you may have to show the funder how the project is going.

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Are there similar schemes in Scotland and Northern Ireland?

Yes, each nation runs its own. See our guides to business loans in Scotland and business grants in Northern Ireland.