Rural Business Development Grant Opens for 2026/27

The Rural Business Development Grant Scheme 2026/27 is now open for applications, offering small rural businesses support to purchase capital items that can help them sustain, adapt and grow. The scheme is funded by DAERA through the Tackling Rural Poverty and Social Isolation Programme and is administered locally by councils.

For businesses in the Derry City and Strabane District Council area, the grant may be particularly relevant to rural micro-businesses looking to invest in machinery, IT equipment, purchased software or e-commerce capability. Grants can cover up to 50% of eligible project costs, with a maximum grant of £7,500 and a minimum grant of £500. Total project costs must fall between £1,000 and £30,000, with applicants required to provide the remaining match funding.

Eligibility is targeted at existing rural micro-businesses. Applicants must be based in a rural area of Northern Ireland, employ fewer than 10 full-time equivalent staff, be actively trading, have a dedicated business bank account and hold appropriate insurance or be willing to obtain it. Locally, Culmore, Drumahoe, Nixons Corner, Coshquinn, Newbuildings and Strathfoyle are listed as eligible rural areas under the programme. Businesses unsure whether their location is eligible should contact the council’s Business Support team at rural.business@derrystrabane.com.

The scheme is capital-only. Eligible items include new equipment and machinery, mobile machinery such as forklifts or ride-on mowers, IT equipment, purchased software and e-commerce websites with online purchasing functionality. Running costs, training, building works, second-hand equipment, vehicles, CCTV, signage, mobile phones and renewable energy installations are excluded.

A key condition is that applicants must attend a mandatory pre-application workshop before applying. Applications from businesses that have not attended a workshop will not be considered.

Applications must be submitted online through NI Direct before 12 noon on Thursday 30^th July 2026. Businesses considering applying should review the guidance notes early, check their rural eligibility, attend a workshop, confirm match funding and allow time to gather the required supporting documents.

For more information please click here.