Grants and funding for veterans starting a business
Most funding for veteran start-ups in the UK comes as a government-backed Start Up Loan with free mentoring, delivered in the forces community by X-Forces Enterprise. Outright business grants for veterans are rare. Charities fund training and equipment, and Enhanced Learning Credits help pay for qualifications. Last checked 27 September 2026.
By Stephen James, Founder & Chairman, British Veteran Owned
Published 27 September 2026 · Last reviewed 27 September 2026
Are there business grants for veterans in the UK?
There is no national business start-up grant reserved for veterans. The main source of start-up finance is the government-backed Start Up Loan, which comes with free mentoring. Forces charities offer smaller grants for training or equipment, and local growth hubs signpost regional grants open to any new business, veteran-owned or not.
The Royal British Legion says that schemes aimed at ex-Service personnel should be your first port of call, before general business funding. That is sound advice: forces schemes understand service records, resettlement timelines and the skills you bring.
Be cautious of websites promising "free grants for veterans" in exchange for a fee. Every scheme below is free to apply for.
What funding and support can veterans apply for?
The table below lists schemes we have checked against their official websites. It covers loans, training funds, grants for work-related costs and free mentoring. Terms change, so always confirm current eligibility and amounts with the provider before you apply. Last checked 27 September 2026.
| Scheme | Run by | What it offers | Who it is for |
|---|---|---|---|
| Start Up Loans | British Business Bank | Government-backed personal loan of £500 to £25,000 for business use, with 12 months of free mentoring and help with your application | UK residents aged 18+, with a business that is pre-trading or has traded for under 36 months |
| X-Forces Enterprise | X-Forces Enterprise CIC | Fully funded enterprise training, mentoring and networking; the specialist delivery partner for Start Up Loans in the armed forces community | Service leavers, veterans, reservists and military families |
| Heropreneurs | Forces Employment Charity | Free business mentoring, usually 12 months, plus workshops and clinics on planning and finance | Serving personnel, veterans, spouses and dependants aged 16 to 24 |
| Employment Grants and signposting | Royal British Legion | Grants towards training or equipment for work, plus referrals to business support partners | Serving personnel, veterans and their families who meet the Legion’s criteria |
| Self-employment advice | The Poppy Factory | Advice for veterans with health conditions who are thinking about self-employment | Veterans with a physical or mental health condition |
| Enhanced Learning Credits (ELC) | Ministry of Defence (ELCAS) | Contribution towards Level 3 or higher qualifications, for example a business or professional qualification | Service personnel and veterans who registered for the scheme and meet the service qualifying rules |
| Local growth hubs and Business Growth Service | Government and local partners | Free advice and signposting to local grants and finance open to all new businesses | Any business in England; Business Gateway, Business Wales and NI Business Info cover the devolved nations |
How do Start Up Loans work for veterans?
A Start Up Loan is a government-backed personal loan for business purposes, run by the British Business Bank. You can borrow between £500 and £25,000 and get 12 months of free mentoring. In the forces community, X-Forces Enterprise helps you apply, prepare a business plan and cash-flow forecast, and supports you afterwards.
Because it is a personal loan, you repay it yourself even if the business does not succeed. The interest rate is fixed for the life of the loan; check the current rate on the British Business Bank website before applying, as it has changed over time.
You need a business plan and cash-flow forecast. Both X-Forces Enterprise and your assigned adviser can help you write them.
Can I use Enhanced Learning Credits to start a business?
Enhanced Learning Credits cannot be spent on starting a business, but they can fund qualifications that help you run one. The MOD scheme pays towards courses at Level 3 or above. Claims are £1,000 (lower tier) or £2,000 (higher tier), and you must contribute at least 20% of the fees yourself.
You must have registered for the scheme during service and meet the qualifying service rules. Courses must be with an ELCAS-approved provider, and claims must be submitted at least 25 clear working days before the course starts.
Resettlement grants and Standard Learning Credits may also help with shorter courses. Speak to your Service Resettlement Adviser, or see our guide to starting a business after leaving the forces.
Where can veterans get free business mentoring?
Free mentoring for veteran entrepreneurs comes from Heropreneurs, run by the Forces Employment Charity, and X-Forces Enterprise. Heropreneurs typically offers 12 months of one-to-one mentoring. Start Up Loans also include 12 months of mentoring. None of these charge the military community for mentoring.
Mentoring is often worth more than the money. A mentor who has run a business can help you test prices, avoid early cash-flow mistakes and build a network outside the forces.
What should I do once my business is funded?
Once your business is trading, make it easy for customers who want to back veterans to find you. British Veteran Owned verifies veteran-owned businesses for free and lists them in a national directory. Verified businesses can display the hallmark and optionally offer a discount to the forces community.
Apply for free verification, then check your listing in the directory.
Frequently asked questions
- Do veterans get free money to start a business?
- Not usually. Start-up finance for veterans is mainly a government-backed loan with free mentoring. Some charities give grants for training or equipment, and local growth hubs may know of regional grants open to all new businesses.
- Can military spouses get start-up support?
- Yes. X-Forces Enterprise supports military families, and Heropreneurs mentoring is open to spouses and dependants aged 16 to 24. Start Up Loans are open to any eligible UK resident.
- Is X-Forces Enterprise a charity?
- X-Forces Enterprise is a community interest company (CIC) and a specialist business support partner of the British Business Bank for Start Up Loans in the armed forces community.
- Can I still get help years after leaving the forces?
- Yes. Veterans can use X-Forces Enterprise, Heropreneurs and Start Up Loans regardless of when they left. Enhanced Learning Credits have their own time limits after leaving, so check with ELCAS.
Once you are trading, get your veteran-owned business verified and listed in the national directory at no cost.
Get verified — freeSources
- Start Up Loans (British Business Bank)
- X-Forces Enterprise (X-Forces Enterprise)
- Heropreneurs (Forces Employment Charity)
- Starting your own business and self-employment (Royal British Legion)
- Meet the volunteer giving veterans a head start in business (The Poppy Factory)
- Enhanced Learning Credits (Ministry of Defence)
- ELCAS (Enhanced Learning Credits Administration Service)
- Support for UK businesses (Business.gov.uk)