SMART Capital Equipment Fund Competitive Call

Grants of between £50,000 to £250,000 may be available, typically covering up to 50% of eligible capital costs*. 

*Awards will be subject to subsidy control compliance and satisfactory Welsh Government due diligence checks. Any variation to the maximum funding amount will be considered only in exceptional circumstances.

The fund is open to the following Wales based organisations:

• Businesses
• Academic Institutions (universities, research organisations and further education colleges) *Applications are limited to 5 per individual organisation.
• Third sector organisations 
• NHS Health Boards

Project activity and funded assets must be located in Wales.

Eligible costs must be capital in nature and directly support increased productivity or productivity improvements. 

Examples include: 

• Productivity enhancing machinery and equipment
• Digital and automation technologies 
• Advanced manufacturing assets
• Installation and commissioning costs directly related to eligible capital assets, including software that is directly associated with and necessary for the operation of the eligible capital asset

This also includes equipment that supports circular economy activity. Examples include:

• Reducing material consumption or waste generation
• Increasing resource efficiency
• Supporting reuse, repair, refurbishment or remanufacture activities
• Increasing the use of recycled or secondary materials
• Creating greater value from existing resources and assets

Applications that demonstrate both productivity improvements and circular economy outcomes are therefore encouraged.

We will not support:

• Working capital

• Routine repairs and replacement of existing assets

• Vehicles for general transport

• Land or property

• General office hardware and software, standalone cloud services, software subscriptions and digital platforms 

• Maintenance and servicing plans or packages

• Training

• Warranties

• Hire purchase or leasing arrangements

• Office furniture and fittings

• Solar or photovoltaic panels or farms 

• Decarbonisation or general energy saving applications

The fund will support projects that deliver measurable improvements in productivity. These may include one or more of the following:

• Increased output, value creation or revenue generation
• Improved labour productivity
• Improved operational efficiency and process performance
• More effective utilisation of materials and resources
• Reduced waste, material losses and avoidable costs
• Successful implementation and operational use of innovative technologies that improve business capability, productivity or market competitiveness

Projects must adopt and implement new technologies or equipment that are either innovative in their own right, or which assist in the development of innovative processes to deliver expected outcomes by 31 March 2028 and demonstrate measurable economic benefits for Wales.

Applications will be scored against:

• Eligibility, compliance and risk
• Project deliverability within the required timescales
• Financial viability
• Evidence of need and additionality
• Productivity impact
• Circular economy benefits
• Benefits to Wales

Meeting the eligibility criteria does not guarantee funding. Applications will be ranked against the assessment criteria and funding will be awarded on a competitive basis.

Evidence and reporting requirements:

Successful applicants will be required to provide evidence that the funded assets have been purchased, installed and are being used for the approved project purpose. They will also need to report on productivity outcomes achieved by March 2028. Full monitoring, claim and audit requirements will be set out in the grant offer letter. 

Application deadline: 23:59 on 25 September 2026

Award decisions announced: Week commencing 26 October 2026

Final claim and evidence of defrayed expenditure submitted by: 31 January 2027

Productivity impact to be demonstrated by: 31 March 2028

Completed application forms and supporting documentation should be emailed to SMART.CapitalCall@gov.wales by 23:59 on 25 September 2026. Applications received after this deadline will not be considered. Applications should be complete and final when submitted as we will not request further or missing information once submitted.