Start Up Loans and other government funding options

The loan is made to the individual, not the company, so it is a personal liability and is assessed on your personal credit history. Multiple founders in the same business can each apply, up to a total limit for the business.

You submit a business plan and cash flow forecast; the application process is the main effort. Successful applicants get 12 months of free mentoring, which is often as valuable as the money.

If you lend the funds into your company, record it as a director's loan to the company. Interest you charge the company must be reported under the CT61 process if any is paid.

Innovate UK funds research and development projects through competitions with fixed deadlines and defined scopes. Local growth hubs and combined authorities run smaller capital and skills grants, often match-funded at 30% to 50%.

Grants are taxable income unless specifically exempt, and they interact with R&D claims: notified state aid grants can push a project out of the enhanced SME support into the merged scheme rules. Check before applying, not after.

The British Business Bank does not lend directly but backs the lenders behind many small business loan and equity products, and publishes a finance hub that lists them by stage.

Enterprise Investment Scheme and Seed Enterprise Investment Scheme relief is the other government lever, reducing the risk for private investors rather than providing money itself.

Up-to-date bookkeeping, a cash flow forecast with stated assumptions, a clear use of funds and evidence of demand. Filed accounts that are current matter too, because an overdue filing record is visible to every lender.

Prepare the numbers before you start the application. Most rejections at this level are about the quality of the financial information, not the idea.

Rates, thresholds and deadlines quoted here reflect the 2026/27 UK tax year. Check current GOV.UK guidance, or ask us, before relying on them for your own company.