Business Grants Delivery Update 2025_26 - AM reviewed
Renfrewshire Council · 26 May 2026
Back to Economy and Regeneration Policy Board — 26 May 2026 and its agenda
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PUBLIC To: Economy and Regeneration Policy Board On: 26th May 2026 Report by: Chief Executive Heading: Business Grants Delivery Update 2025/26 1. Summary 1.1 This report provides an update on the delivery and impact of business grant support during 2025/26, specifically the Business Resilience Fund, Digital Development Grant and Social Enterprise Small Grant Fund which are designed to support the local economy, stimulate private sector investment, and strengthen the resilience and competitiveness of Renfrewshire’s business base. 1.2 The report also highlights the proposed use of grants for 2026-27 2. Recommendations 2.1 Board members are asked to: (i) Note the contents of the report. (ii) Ratify the consolidation of the Business Resilience Fund and the Digital Development Grant into a single Business Development Grant Programme for 2026/27, aligned to the revised funding position set out in Section 7 of the report. (iii) Agree that the social economy grant fund reduces to 50% intervention rate for the year ahead.
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PUBLIC 3. Background 3.1 Small and medium-sized enterprises (SMEs) make a significant contribution to the Renfrewshire economy and are central to local regeneration, productivity growth and job creation. Businesses with the potential for growth and increased impact are considered pivotal to the area’s long-term economic development. 3.2 The Business Development Team, working alongside Business Gateway, support the start-up, sustainability and growth of businesses across a wide range of sectors, including indigenous firms and potential inward investors. Key areas of activity include: • Providing financial assistance to new and existing businesses • Promoting access to public sector procurement opportunities • Encouraging business collaboration, particularly within priority sectors • Providing specialist, tailored business support 3.3 Social economy organisations operate as businesses and so are eligible for business grant support in Renfrewshire. Alongside this support is a specific small grant programme for social enterprise organisations looking to grow and develop. 3.4 The report outlines the various business programmes below. 4. 2025/26 Business Grant Delivery 4.1 Grant support is designed to provide gap funding only, ensuring that projects proceed where financial barriers exist, rather than awarding the maximum eligible grant rate. 4.2 During 2025/26 the Business Resilience Fund and Digital Development Grant formed part of the Council’s core economic development business support programmes. These funds were part-funded by the UK Shared Prosperity Fund and aligned with regeneration and inclusive growth objectives. 4.3 The Business Resilience Fund supports business recovery and growth through investment in: • New equipment or machinery • Property expansion or improvements • Participation in national trade exhibitions • Development of new products, processes or services 4.4 The Digital Development Grant supports the development and implementation of new digital systems aimed at improving business performance and enabling growth. Eligible activity includes: • Cybersecurity improvements
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PUBLIC • Online booking and ticketing systems • E-commerce solutions • App development • Investment in digital hardware and software 4.5 Grants of up to £10,000 were made available to help businesses: • Improve operational efficiency and productivity • Enhance competitiveness and market reach • Invest in digital capability and resilience • Strengthen long-term sustainability and adaptability 4.6 All applications were assessed through a robust appraisal process, considering business viability, projected performance over the following 12 months, and potential for job creation and growth in turnover. 4.7 The Social Enterprise Small Grant supports social enterprises and social economy organisations looking to grow or strengthen their enterprise activities and develop their organisations.. 4.8 The Social Enterprise Small Grant supports social enterprises and social economy organisations looking to grow or strengthen their enterprise activities and develop their organisations. The grant can fund: • capacity building work to acquire enterprise skills (developing skills, processes, and resources that the organisation needs to adapt and thrive) • new equipment or resources related to delivering new products and services or extending customer base - this could include staffing costs, IT office equipment, or improvements to premises • projects to create an economic impact, such as increasing revenue, reducing costs, or providing training opportunities • part of the cost for a larger project or activity. 4.9 In 2025-26 successful applicants could receive 100% of eligible project costs up to a maximum of £5,000. 5. Performance and Impacts 5.1 Business Resilience Fund – Outcomes Over the past year: • £162,750 was committed to 26 local businesses • Businesses leveraged an additional £311,558 in private sector investment
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PUBLIC • Total project costs reached £446,447 • The average grant award was £6,260 • 230 jobs were supported across participating businesses 5.2 Digital Development Grant – Outcomes Over the last year : • £74,109 was awarded to 12 businesses • Businesses leveraged approximately £120,128 in additional investment • Total project costs amounted to £194,235 • The average grant award was £6,326 • 425 jobs were supported 5.3 Businesses supported through both funds range from the service sector to manufacturing, construction, engineering, food production and product design. 5.4 Funded projects include attendance at national and specialist exhibitions, purchase of machinery and production equipment, alterations to business premises to make them fit for purpose, development of e-commerce platforms, analytical software development and business intelligence analysis software. 5.5 Social Enterprise Small Grant – Outcomes Across 2025–26 two social enterprises received grants to a total of £10,000. This supported one enterprise to deliver a geo-targeted social media campaign. Whilst the other used the grant to fund salary for a part-time post to drive additional income generation. Both enterprises were able to build capacity as well as securing or adding employment opportunities. 5.6 In addition, there is a recurring commitment from the Council to support the Shopmobility service at the Piazza in Paisley and £15,000 per annum is provided to support the costs of this service. 6. Funding Context and Future Delivery 6.1 On 8th January 2026 the Local Growth Fund for Scotland was announced. The revised programme resulted in a reduction in funding for Renfrewshire, reflecting a stronger emphasis on capital investment and a more limited allocation for revenue-based economic development activity. 6.2 As a result of these changes, the total budget available for business grant support in 2026/27 is £150,000, representing a significant reduction when compared with the £250,000 available in 2025/26.
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PUBLIC 6.3 In light of this reduced funding position, the existing grant provision is proposed to be condensed into a single Business Development Grant Programme. This approach is intended to ensure that limited resources are targeted as effectively as possible, while maintaining the ability to respond flexibly to business needs across a range of sectors and growth stages. 6.4 The new Business Development Grant Programme will replace the two current separate funds and support a broad range of eligible activities including productivity improvements, and digital adoption and resilience-building measures that will strengthen long-term competitiveness. Grant awards would continue to be assessed on a gap-funding basis, ensuring value for money and maximising leverage of private sector investment. 6.5 The reduction in funding, however, will result in: • A lower number of businesses being supported during the financial year • A more competitive application process • A stronger focus on projects that demonstrate clear economic impact, including job safeguarding and creation, productivity gains and business growth 6.6 While consolidation reflects a constrained funding environment, it also presents opportunities to concentrate available resources on applications with the greatest potential impact. 6.7 The social economy grant fund for the year ahead remains at £30,000 with £15,000 available as grants. There has been a recent increase in funding requests for this grant programme and so the grant rate has been reduced to 50% of eligible costs in line with the other business grant programmes. More details on the social economy fund is provided at Appendix 1. 6.8 The new Business Development Grant Programme will ensure continued support for Renfrewshire’s SMEs and social enterprises during 2026/27, enabling businesses to invest, adapt and grow despite ongoing economic pressures and reduced national funding. Implications of the Report 1. Financial - No additional finance sought. 2. HR & Organisational Development - None 3. Community/Council Planning • Jobs and the Economy – progresses the business development and growth agenda.
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PUBLIC 4. Legal - None 5. Property/Assets - None 6. Information Technology - None 7. Equality & Human Rights- The Recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report. 8. Health & Safety - None. 9. Procurement - None. 10. Risk - None. 11. Privacy Impact - None. 12. Children’s Rights - None 13. Cosla Policy Position - Not Applicable. 14. Climate Risk - Not Applicable. ___________________________________________________________________ Author: Colette Saez colette.saez@renfrewshire.gov.uk
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PUBLIC Appendix 1: Social Enterprise Small Grant Fund The Social Enterprise Small Grant is available to social enterprises and social economy organisations looking to grow or strengthen their enterprise activities and develop their organisations. Applicants must represent a social enterprise or social economy organisation who are based in Renfrewshire, and which has a turnover of less than £500,000. Successful applicants can receive up to 50% of eligible project costs up to a maximum of £5,000. The grant can fund: • capacity building work to acquire enterprise skills (developing skills, processes, and resources that the organisation needs to adapt and thrive) • new equipment or resources related to delivering new products and services or extending customer base - this could include staffing costs, IT office equipment, or improvements to premises • projects to create an economic impact, such as increasing revenue, reducing costs, or providing training opportunities • part of the cost for a larger project or activity. The grant cannot fund: • work that has already happened • individuals - applicants must represent an organisation • projects intended to promote religious or political beliefs • study visits (visiting other enterprising organisations and learning from them) • the purchase of vehicles. Applicant organisations should ensure that they: • have a written constitution and an appropriate governance structure, such as a management committee and board of trustees • comply with the Equality Act 2010 • follow any relevant Disclosure Scotland and Protecting Vulnerable Group schemes • can show how they would manage the funds and use them constructively • can show how the proposed activity would support the types of projects described above. Applications are accepted each year until the fund's annual budget is fully awarded, so early applications are advised.