Section Menu

Sources of Finance for Small Businesses

The UK's financial markets are amongst the most dynamic and flexible in the world, meeting the needs of most small businesses. However, some small businesses - particularly start-ups and those lacking a track record or without collateral - can struggle to access finance. Small businesses with high growth potential may also have difficulty raising relatively modest amounts of risk capital needed to fund their ambitions for growth. The Government is working to understand and remove the barriers that can prevent finance being raised to fund viable business propositions.

The best place for small businesses to find out what grants are available for a specific business is through the Business Link website's finance and grants pages.

Grant for Research and Development

Grant for Research and Development is the BERR initiative that provides grants to help individuals and small and medium-sized businesses to research and develop technologically innovative products and processes. This initiative replaced the Smart scheme which formally closed to applications on 31 August 2003.

Details of grants, funds and loan guarantee schemes with which the Enterprise Directorate is involved are detailed below.

Community Investment Tax Relief

For individuals and corporate bodies investing in accredited Community Development Finance Institutions (CDFIs).

Early Growth Funds

Object is to increase availability of small amounts of risk capital: on average £50,000 for specific industries.

Enterprise Capital Funds

Enterprise Capital Funds second round launched on 13 November 2006.