Tuesday, March 4, 2025

New Defra fund offers grants to support SME capital projects

Funding is available to support rural businesses and communities via the Rural England Prosperity Fund which has been launched by DEFRA.

The Rural England Prosperity Fund aims to support capital projects for small businesses and community infrastructure, to help improve productivity and strengthen the rural economy and rural communities.

Capital funding is available for:

  • New and existing rural businesses to develop new products and facilities of wider benefit to the local economy, including farm businesses looking to diversify.
  • New and improved community infrastructure to provide essential community services and assets for local people and businesses to benefit the local economy.

Applicants must use funding on capital projects, which means spending grants on lasting assets such as a building or equipment.

Grants must be for business or community purposes, and grants cannot be used to fund domestic property improvements or to purchase private vehicles. Grants cannot be spent on revenue costs such as running costs or promotional activities.

Projects must be in a rural area, meaning:

  • Towns, villages and hamlets with populations below 10,000 and the wider countryside.
  • Market or ‘hub towns’ with populations of up to 30,000 that serve their surrounding rural areas as centres of employment and in providing services.

The Rural England Prosperity Fund is administered by eligible local authorities and may operate differently within local authority areas.

For the most up-to-date information, click on your local region: East Yorkshire, North Yorkshire, West Yorkshire, City of Doncaster Council.

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