Funding Options for Micro & Small Firms

For start-up businesses: there is funding available for many more Start Up Loans – 69,000 of them, over the next 4 years. It was also announced that the age at which a business can apply has been extended, from 3 to 5 years so if you started your business post 2020, this could be relevant for you. As well as money, you get a mentor as part of the package.

For growing businesses: the Growth Guarantee Scheme has been placed on a ‘longer term footing.’ These loans are where the government guarantees 70% of the loan for participating lenders and there are restrictions on what can be requested in the form of personal guarantees i.e. you are not asked to put your home on the line. It is administered by the British Business Bank which describes the scheme as ‘designed to support access to finance for UK smaller businesses as they look to invest and grow. There are a wide range of products supported by different lenders, including term loans, overdrafts, asset finance, invoice finance and asset-based lending. The Growth Guarantee Scheme can generally support facility sizes of up to £2m.’

For businesses raising from Community Development Finance Institutions (CDFIs): a reminder of an announcement made earlier in the year of £150m of Community ENABLE funding that is going to CDFIs to on-lend to small businesses. CDFIs are not for profit lenders who lend local. They are represented at a national level by Responsible Finance who have been asked to work on a roadmap that will expand the capacity of the CDFI network to support even more small businesses.

For businesses upgrading boilers: apply to the Boiler Upgrade Scheme where you can access a £7,500 grant to ‘cover part of the cost of replacing fossil fuel heating systems with a heat pump or biomass boiler.’

For businesses affected by security: 500 SMEs will receive £2,500 to strengthen their security including expert advice to protect ideas and innovations from powerful competitors including state actors. Delivered by Innovate UK.

For high growth potential SMEs: the Intellectual Property Office (IPO) IP Audit Scheme provides part-funding of £2,250 (including VAT) towards the cost of an IP audit, conducted by a suitably qualified IP professional. The business must contribute £750 towards the overall cost of the audit. This is delivered by IPO partners in all regions of the UK.

For businesses taking on apprentices: payments will be made to employers of up to £2,000 for new foundation apprenticeships.

For businesses offering industry placements: the Employer Support Fund runs until March 2026 and contains ‘£1.8 million to support employers of all sizes delivering industry placements in the Construction T Level route and £4.5 million to support employers of all sizes offering industry placements for the Health T Level, and SMEs offering industry placements for all other T Levels.’ 

For small firms in the legal sector: an extra £1.5m was announced for the LawTech UK programme to encourage digital adoption in legal services.

For exporters: there have been a number of recent announcements around more funding for UK Export Finance to be directed to small firms, with now a confirmed commitment to support 1,000 SMEs per year by 2029.

For businesses in the film sector: £75m for a UK Global Screen Fund to develop independent screen content and showcase the best of UK and international film.

For businesses in the music sector: a Music Growth Package of up to £30m over the next 3 years delivered by Arts council including grants.

For performing artists: the International Showcase Fund offers grants of up to £5,500 ‘for international export opportunities for UK-based artists, bands, songwriters and producers who have been invited to perform or create new music at international industry facing showcasing festivals, song writing camps or conferences.’

For high-growth agri-tech businesses: an Agri-tech Export Accelerator will match participating businesses with new and international markets. Further details on this have not been made public but keep an eye out on news from the Industrial Strategy unit in Department of Business & Trade.