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:

• Accelerating the energy transition
• Scaling innovation
• Boosting capital investment

Find out more about our priority areas for funded activity 

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.

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 £150,000. 

If your project focuses on capital investment, the minimum size will likely need to be around £1 million. We’ll also be looking for evidence that it delivers a measurable improvement to productivity and wages.

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

Read the European Commission’s definitions of small and medium sized enterprisesopens in a new window  

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. It must:

• Involve capital expenditure
• Not offset job losses elsewhere
• Be financially viable
• Be mainly funded by the private sector
• Demonstrate the need for grant funding to progress
• 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 to 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