Starting a new business is an exciting journey, but it often comes with a challenge: financing. Whether you need funds to get off the ground, support early operations, or scale for growth the UK government offers a range of financial resources to help new and small business owners succeed. This guide brings together five government backed resources that every new entrepreneur should explore when considering loans or grants.
1. Finance and Support for Your Business
The UK Government’s central directory for business funding is the best place to start. This tool allows you to search for loans, grants, and investment options tailored to your specific business needs. You can filter results based on your business size, sector, location, and funding purpose whether it’s to hire staff, invest in innovation, or improve energy efficiency.
Key features:
- Updated regularly with available schemes
- Includes options from both public and private sector lenders
- Offers detailed eligibility criteria and application guidance
For a new business owner, this is a resource to understand what funding opportunities are available nationally and locally. It also helps identify programmes with lower interest rates or additional support components, such as mentoring.
2. Start Up Loans Scheme
If you’re in the early stages of starting a business or even just planning, it’s worth looking into the Start Up Loans Scheme. This is a government-backed initiative offering unsecured personal loans of up to £25,000 per applicant (with a fixed interest rate of 6% per annum). Beyond the money, the scheme provides support in the form of mentoring and free business guidance.
Key features:
- Loans from £500 to £25,000
- Fixed 6% annual interest rate
- Repayment terms from 1 to 5 years
- Free mentoring for 12 months
This scheme is ideal for those who might not qualify for traditional bank loans due to a lack of trading history or collateral. The structured support means you’re not alone in navigating your first year in business.
3. Find a Government Grant (find-government-grants.service.gov.uk)
In addition to loans, new businesses should consider grants, money that doesn’t need to be repaid. The UK Government’s dedicated grant search service allows you to browse a wide range of funding opportunities. These grants support areas such as innovation, sustainability, training, and regional development.
Key features:
- Search by sector, business type, or purpose
- Includes both open and upcoming grant programmes
- Links directly to application pages
While grants are competitive and often come with stringent criteria, they can provide a vital boost to help launch or accelerate your business without the burden of debt.
4. Invest to Grow
Targeted at businesses in the East Midlands, Invest to Grow is a regional programme that blends loans and grants to support expansion and innovation. While not available UK wide, it’s an example of the kind of localised support available to SMEs.
Key features:
- Open to existing and early stage businesses
- Funds allocated for innovation, expansion, and job creation
- Mix of loan and grant (repayable and non repayable funding)
Even if you’re not in the East Midlands, similar schemes exist in other regions. Always check your local growth hub or combined authority’s website, or search the gov.uk finance tool mentioned before
5. Help to Grow: Finance and Funding
Once your business is established and you’re looking to scale, the Help to Grow programme offers further guidance. While initially known for its management and digital training courses, Help to Grow also includes resources on accessing finance, such as growth loans and equity investment.
Key features:
- Case studies and practical guidance
- Access to growth funding pathways
- Support in becoming investment ready
This is particularly useful for new business owners who aim to grow quickly or need to prepare for more complex funding such as venture capital or innovation grants.
Local & Regional Support
In addition to national programmes, business owners, especially those just starting out, should take full advantage of the local and regional support available to them. Across the UK, many local authorities and regional growth organisations offer tailored business advice, small grants, and help accessing funding streams that may not appear on central government websites.
These services often include sector specific grants for areas like rural development, digital transformation, or sustainability. Business owners can also receive one-to-one guidance from local enterprise advisors, who can help identify appropriate funding options and assist with applications. Some areas provide access to start-up support, equity co-investment schemes, and growth funding aimed at innovation and job creation. It’s common to find schemes offering awards from a few thousand pounds up to £100,000, depending on business size, sector, and purpose. Support is often time limited or offered in funding rounds, so staying informed through local business newsletters or enterprise hubs is essential. This kind of personalised, place based support is particularly valuable for small businesses seeking not just funding but expert help rooted in the needs and priorities of the local economy.
Final Thoughts
Navigating the world of business loans and grants can feel overwhelming, but the UK Government has built a robust infrastructure to support new entrepreneurs. Start with the central directories like the gov.uk finance tool and the grants search service then explore tailored programmes like Start Up Loans and Help to Grow.
Every funding route comes with different expectations and commitments. Loans require repayment (often with interest), whereas grants are more competitive but don’t require repayment. Regional programmes like Invest to Grow show how geography can also open specific funding channels.
Before applying, always:
- Review eligibility criteria carefully
- Prepare a solid business plan
- Understand the full terms of the funding
With the right preparation and the help of these official resources, you could be well on your way to securing the financial support your new business needs.