The Young Business Capital Grant fund from Highlands and Islands Enterprise (HIE) provides grants to young businesses and social enterprises that have been trading for less than 5 years.

The funding can be used to help pay for capital investment – that is, the purchase or upgrade of physical assets such as land, buildings or equipment.

The funding is offered as a non-repayable grant of up to £75,000. This is intended to cover between 20% and 50% of the total cost of a project. The minimum amount you can apply for is £10,000, so projects with a total cost of £20,000 or less are unlikely to receive funding.

The amount of funding you receive will depend on your business or social enterprise's financial need.

The funding cannot be used for:

• projects that have already started at the time you submit your expression of interest
• the purchase of electric vehicles, including bikes and cars
• housing upgrades or developments

To be eligible, your organisation must:

• be a small or medium-sized business or social enterprise 
• have been trading for less than 5 years from the date you were incorporated or registered with HMRC
• own its own premises in the Highlands and Islands, or have written permission from your landlord to make changes to the premises
• have planning permission from your local authority and any other building consents required for your project
• carry out its business activity in the Highlands and Islands
• pay non-domestic or business rates

You must also comply with HIE’s fair work conditions to receive a grant.

Businesses from most sectors can apply, but there are exceptions. Your business is not eligible if you are:

• a large enterprise, or part of a group made up of large enterprises
• a business or social enterprise that operates primarily in the following sectors: 
  • retail (shops)
  • food and beverage service (including pubs, cafes and restaurants)
  • personal services (such as hairdressers, beauticians and alternative therapists)
  • business services (such as lawyers and accountants)
• an accommodation business operating from your own home 
• an organisation primarily funded by the public sector
• a religious or political organisation

The grant will cover between 20% and 50% of your eligible project costs. You'll need to cover the rest of the costs through other sources.

The maximum amount you can receive is £75,000. The minimum amount you can apply for is £10,000. This means that projects with a total cost of £20,000 or less are unlikely to receive funding.

Business and social enterprises in the Highlands and Islands that have been trading for less than 5 years.

The application process has 2 stages.

The first stage is to complete and submit the online expression of interest form on HIE’s website. The deadline to submit your expression of interest is 31 December 2025. You'll hear the outcome within 4 weeks. 

If you're unsuccessful, you'll be told why and directed to other forms of support if possible.

If you're successful, you'll be assigned to a development manager who will guide you through the full online application process. The time required to do this will vary on a case-by-case basis. The deadline to submit your full application is 31 March 2026.

The deadline to submit your expression of interest is 31 December 2025. The deadline to submit your full application is 31 March 2026.

The amount of funding you get will depend on your business or social enterprise's financial need. You'll need to provide financial information to help HIE assess your application.

If you're invited to submit a full application, you'll need to supply supporting documents including:

• copies of your past accounts
• financial projections
• business plans
• evidence of quotes for goods and services

You'll also need to provide evidence that you:

• own the premises that will be used for the project, or have written permission from your landlord to make changes to the premises
• have planning permission from your local authority to carry out the works detailed in your application 
• have any other building consent required

You must also comply with HIE’s fair work conditions to receive a grant.

Visit the HIE website for more information and to submit an expression of interest form.