UK Government backed business funding schemes

UK Government‑backed business funding schemes

@ February 2026

1. Start Up Loans (British Business Bank)

A government‑backed personal loan for business purposes, aimed at new businesses and those trading under 3 years.

• Loan amount: up to £25,000

• Interest: fixed 6%

• Extras: free mentoring and support

• Eligibility: UK‑based, viable business plan, credit checks

• Source: Business.gov.uk lists Start Up Loans as a key government‑backed option for new businesses

2. Growth Guarantee Scheme (GGS)

Successor to the Recovery Loan Scheme. Supports SMEs that want to invest and grow by giving lenders a government guarantee.

• Loan types: term loans, overdrafts, invoice finance, asset finance

• Eligibility: UK‑based SMEs, viable business, not in financial difficulty

• Purpose: growth, investment, working capital

• Source: Business.gov.uk confirms GGS as a government‑backed loan scheme for small UK businesses

3. Government Grants (various departments)

Grants are non‑repayable funds for specific purposes such as innovation, energy efficiency, digital adoption, R&D, exporting, or regional development.

• Eligibility: varies by scheme (sector, location, activity)

• Examples: Innovate UK grants, local authority grants, energy efficiency grants

• Where to find them:

  • Find a Grant service (central government grants)

  • Local Growth Hubs

  • Innovate UK

• Note: Highly competitive, often with strict reporting requirements.

4. British Business Bank Programmes

Beyond Start Up Loans and GGS, the BBB also supports:

a. Regional Investment Funds

Funds such as the Northern Powerhouse Investment Fund, Midlands Engine Investment Fund, and Cornwall & Isles of Scilly Investment Fund provide debt and equity finance to SMEs.

b. Future Fund (historic)

Previously supported innovative companies during COVID‑19; now closed but relevant for context.

5. Innovate UK Funding

Supports innovation, R&D, technology development, and commercialisation.

• Types: grants, loans, innovation competitions

• Eligibility: innovation‑driven businesses

• Often co‑funded with industry partners or research bodies.

6. Local Authority & Devolved Government Schemes

These vary by region and may include:

• Business growth grants

• Digital transformation grants

• Green/low‑carbon grants

• Export support

• Town‑fund or regeneration‑linked business support

You can find many of these through the Find a Grant service or local Growth Hubs.

7. Community Ownership Fund / Social Investment Schemes

For social enterprises, community groups, and mission‑driven organisations.

• Grants and blended finance

• Often tied to community assets, social impact, or regeneration

• Listed on Find a Grant and social investment portals.