Best small business and start-up grants and loans in the UK

Grants and loans can provide vital funding for start-ups and small businesses in the UK.

However, many entrepreneurs delay the application process or don’t realise they’re eligible for financial support.

But registering can take as little as two minutes, so it’s worth knowing your options.

If you’re looking to raise funding, here are the best finance opportunities in the UK to help grow your business.

Small business grants

For small businesses that need a boost, there are lots of funding schemes available to apply for in the UK.

The benefit of a grant is that, while there are terms and conditions, you never need to pay trepay the money

Seed Enterprise Investment Scheme

This small business grant fund encourages investors to put their money into new ventures by offering tax relief to those who buy shares in your company. Companies can receive a maximum of £250,000 through the scheme.

The Gigabit Broadband Voucher Scheme

Businesses in rural locations can access up to £4,500 to upgrade to a high-speed broadband connection.

Arts Council National Lottery Project Grants

The Arts Council offers much-needed support to organisations with a focus on creative initiatives, including theatres and art galleries.

Small business grants range from £1,000 to £100,000.

CRACK-IT challenges

Encouraging collaboration between businesses and academics, this competition invites small-medium enterprises (SMEs) to solve scientific or technological processes or develop a brand-new product.

If your application is successful, you can secure a contract of up to £1 million for up to three years.

Small business loans

Now, we’ll look at some of your options if you’re looking for a small business loan.

NatWest Small Business Loan

NatWest offers a selection of flexible loans with contract terms of up to seven years.

You can borrow between £1,000 and £100,000, but you may need to provide security or a guarantee to access funding.

HSBC Small Business Loan

For loans between £1,000 and £25,000, HSBC offers a variety of funding options.

The bank offers a fixed interest rate and a three or six-month repayment holiday at the start of the contract term.

You can stretch your repayments across a period of between 12 months and 10 years.

The Royal Bank of Scotland (RBS) Small Business Loan

You can borrow between £1,000 and £100,000 with RBS’s flexible small business finance options.

There is a fixed interest rate and you can choose the repayment period to suit you, from one to seven years.

Lloyds Business Loans

Choose from a selection of funding options at Lloyds Bank.

You can borrow between £1,000 and £50,000 if your turnover is less than £3 million.

Starling Business Loan

Fixed-rate business loans are available from £25,001 to £250,000, with repayment terms of between one and six years.

Although there is a one-off fee of 4% when you take out the loan, there are no penalties for early repayments.

Funding Circle Business Loan

Funding Circle offers business loans for entrepreneurs. You must have been in business for at least a year, and you can borrow anything between £10,000 and £750,000.

Fredericks Foundation Loans

The Fredericks Foundation specialises in supporting social enterprises.

If you’ve been up and running for a year, the foundation offers funding between £10,000 and £50,000.

The foundation uses a flexible revenue share model, with repayments based on a percentage of your revenue. This means your repayments are reduced if your revenue falls.

Start-up grants

Now, we’ll explore the start-up grants available.

The Do It Awards

UnLtd created this scheme to help entrepreneurs develop organisations working on social issues.

If you need to raise funding for your project, you may be able to access up to £8,000 to build a thriving business.

The Eureka Eurostars Scheme

Eureka is the biggest international funding programme for SMEs working in research and development.

Its Eurostars programme offers access to public funding and an expert support network.

Start-up loans

There are also start-up loans that may be worth considering if you’re not eligible for a grant.

The Start Up Loan

Backed by the government, this is one of the most well-known start-up loans available to entrepreneurs in the process of developing a business.

Individuals can apply for up to £25,000. Once the loan is approved, recipients can repay the amount over five years, at  fixed interest rate of 6%. The scheme also includes a year of free business mentoring.

The Prince’s Trust Enterprise Award

In collaboration with the Start Up Loans Company, The Prince’s Trust provides funding to would-be business owners between the ages of 18 and 30.

The Virgin Start Up Loan

Virgin runs a loan scheme providing access to funding of between £500 and £25,000 to entrepreneurs looking to start or develop their business.

You can agree on a repayment period of one to five years, with a fixed interest rate of 6%, and there are no set-up fees or early repayment penalties.

How can an accountant help me get a grant or loan?

Consulting a financial specialist will help you identify the right funding scheme for your business and boost your chances of gaining approval.

If you’re interested in applying for a business loan, an accountant can determine your repayment capabilities and advise on the best finance option for you.

An independent financial adviser can also help you establish how much capital you need to generate and how you will spend it once it’s in your account.

During the consultation stages, you should meet to discuss your funding options and prepare for your application by organising any relevant paperwork, including your business plan.

If you found this article useful, then you might also find our article on small business crowdfunding informative, too!