The £13,833 grant will enable the business to develop a new e-commerce website, make improvements to software, lease a new branded company van, and continue further investment in staff training.
Owner Bob Walker opened the business in 2008, after identifying an opportunity to supply bulk bags of horse, dog and other animal feeds within the Louth area.
Responding to customer requests, the company has expanded over time to offer a wide range of pet accessories and has added a tack store and horse rug washing service.
The planned improvements look to make the business more efficient and offer new services to customers including local delivery and the ability to purchase online through the new website.
Two part-time posts and an apprenticeship will also be created.
Mr Walker said: “Without the contribution from the Rural Development Fund, the project would have taken much longer to achieve. We feel the improvements will help make the business stronger, contributing to the economy of the area.”
Portfolio Holder for Market Towns and Rural Economy Coun Adam Grist, said: “The Rural Development Fund is about supporting businesses to grow and prosper to boost the economy of East Lindsey.
“Buckets is an example of a small business with a clear plan for the future and an ambition to continually improve, and I wish Bob and his team well in the years ahead.”
Since its launch in 2012, the Fund has awarded £927,074 to 36 local businesses, creating 51 full time positions, 13 part time positions and 10 apprenticeships.