Individuals planning to set up a business and SMEs are eligible provided that they are based in Scotland or planning to set up in Scotland and we welcome university spin-out companies. SMEs must meet the European Community definition of a small and medium-sized enterprise. In essence, this requires you to:

have less than 250 employees (full-time equivalent world-wide, including partners and executive directors) and have either
an annual turnover not exceeding EUR 50 million and/or
an annual balance sheet total not exceeding EUR 43 million.
Grants will be made at the discretion of the Scottish Government. The selection process will take account of a number of factors including the technological, intellectual property, financial and commercial aspects of an application as well as the management expertise available to the business.

Account will also be taken of the wider impact and the project’s implications for society including factors such as environmental impact, sustainability and health and safety. We will not support projects which will have an adverse effect on the environment and/or society.

If you believe that any decision during the grant process is unsound because we failed to take proper account of the information you provided, or if you can supply more information or an explanantion to help us look at the project again, you can write to us to request a review. As part of your request, you must clearly set out why you believe the decision to be unsound.  Our decision will be fully reconsidered in light of the the extra information or explanations provided.

more details:http://www.scottishbusinessgrants.gov.uk/rsa/1014.html