Capital grant

The capital grant is a discretionary grant aimed at encouraging capital investment and wage growth to deliver a step change in Scotland’s economy.

If you’ve got a project involving capital expenditure, our capital grant could provide support to help with project costs. We’re looking to support projects that deliver against our focus on economic transformation, particularly around:

• Creating an internationally competitive energy transition industry in Scotland: we will look to support the projects that best help position Scotland as a leader in clean energy by attracting investment, scaling supply chains, selling globally and accelerating commercial deployment
• Scaling the impact of Scotland’s innovation strengths into high-growth industries of the future: turning investment in cutting-edge innovations into world-leading businesses of scale in key future industries, from life sciences to quantum, FinTech and space
• Driving capital investment to deliver a step-change in Scotland’s productivity: ensuring Scottish businesses can unlock capital investment to boost company productivity and supporting our ambitions to make Scotland a high-wage economy

Find out more about our priority areas for funded activity 

Funding is discretionary, so even if your project meets all the minimum requirements it does not mean your project will be funded. We support the projects that, in our view, deliver most strongly against our strategic ambitions. 

Different levels of funding are available, depending on the size of your business. The level of support we'll offer depends on how much support your project needs and on the economic benefits of your project. 

To deliver the scale of economic transformation that we seek, we are looking for projects that represent at least £1 million of company spend. 

The amount of funding we'll offer depends on: 

• The size of your business
• Our assessment of how much is needed for the project to go ahead

The minimum grant we'll consider is £250,000. 

Depending on the size of your business, different levels of funding are available. 

We can support: 

• Up to 40% of the eligible costs for a small enterprise
• Up to 30% support for a medium enterprise
• Up to 20% of the eligible costs for a large enterprise

The actual grant awarded may be less than the maximum. How much you’ll get depends on how much is needed to allow your project to happen, and the calculated benefits of the project.

Please note that, under certain circumstances, some or all of the grant may be repayable.

You can apply whether your business is based in Scotland or not – although the project must take place in Scotland. Your business may be Scottish-owned or headquartered outside Scotland.

To qualify for funding, your project needs to meet all of the scheme criteria as a minimum. If you do meet all of the criteria it does not mean your project will be supported, we will only select the projects that we view as having the highest impact. 

Your project must:

• Involve capital expenditure
• Not offset job losses elsewhere
• Be financially viable
• Be mainly funded by the private sector
• Enable your company to be globally competitive. If any benefits are limited to a local area, we are unlikely to fund your project
• Demonstrate the need for grant funding to progress. We’ll expect you to demonstrate why grant support is needed for your project, including evidence that other funding options have been considered
• Align with Scotland’s net zero ambition

We would expect your project to last between 6 and 36 months.

Funding won’t be offered if your company is already committed to undertaking the project or where we believe it would proceed anyway without the grant.

Your project also won't be eligible if it results in relocation of any current company activities from England, Northern Ireland, or Wales. If you think your project could be a relocation, please contact our enquiry team to see if there’s another way we can help.

If your project is located in the Highlands and Islands or the South of Scotland, you should contact your local enterprise agency in the first instance for funding advice.

Contact Highlands and Islands Enterpriseopens in a new window 

Contact South of Scotland Enterpriseopens in a new window 

All companies which are awarded grant funding need to meet the Scottish Government’s approach to Fair Work and net zero. This includes:

• Payment of at least the real Living Wage to all employees over the age of 16, including apprentices 
• Appropriate channels for effective worker’s voice, such as trade union recognition
• No inappropriate use of zero hours contracts
• Investment in workforce development
• Addressing workplace inequalities, including pay and employment gaps for women, racialised minorities, disabled people and workers aged over 50
• Offer flexible and family friendly working practices for all workers from day one of employment
• Oppose the use of fire and rehire practice
• A credible plan in place to reduce operational greenhouse gas emissions to net zero by 2045 at the latest

Get real Living Wage guidance from the Living Wage Foundationopens in a new window 

Read about our net zero ambitions