A Cheat Sheet on Government Funding for Business in the UK

Starting a business is an exciting endeavor, but the reality of funding can be a daunting challenge. Fortunately, the UK government offers various funding options and support initiatives to help entrepreneurs and small business owners bring their vision to life. In this cheat sheet, we’ll explore the different types of government funding available and how to qualify for them.

1. Start-Up Loans
The Start-Up Loans scheme offers loan options ranging from £500 to £25,000 to help entrepreneurs start or grow their business. The scheme is open to UK residents who have a business idea or have been trading for less than two years. Interest rates are fixed at 6% p.a. and repayment terms are flexible, up to five years.

2. Enterprise Investment Scheme (EIS)
The EIS is designed to encourage investment in small, high-risk businesses by providing tax reliefs to investors. Companies can raise up to £5 million each year, and investors can receive up to 30% income tax relief on the amount invested. To qualify, businesses must have less than £15 million in gross assets and fewer than 250 employees.

3. Seed Enterprise Investment Scheme (SEIS)
This scheme is aimed at start-ups and early-stage businesses, offering tax reliefs of up to 50% to investors who put money into qualifying companies. Companies can raise up to £150,000 through SEIS, and investors can claim a 50% tax refund against their income tax bill. To qualify, businesses must have been trading for less than two years and have fewer than 25 employees.

4. Innovate UK
Innovate UK is a government agency that offers funding and support for innovative projects and businesses. The agency provides grants, loans, and other forms of financial support to businesses in the science, technology, engineering, and Maths (STEM) sectors.

5. Regional Growth Fund (RGF)
RGF offers support to businesses and projects that create jobs and growth in their region. The fund is open to businesses of all sizes and sectors, but priority is given to those in areas with high unemployment rates or in declining industries.

In summary, these five government funding options are just a few of the opportunities available to UK businesses. Each option has specific criteria, so it’s important to understand which funding streams are best suited for your business needs. For further information, check out the UK government’s Business Finance Guide.

Below are the points we will be looking at as we discuss A Cheat Sheet on Government Funding for Business in the UK

1. Start-Up Loans: UK Government Funding for Business
2. Enterprise Investment Scheme (EIS): A Cheat Sheet
3. Seed Enterprise Investment Scheme (SEIS): UK Government Funding for Start-Ups
4. Innovate UK: A Guide to UK Government Funding for Innovation
5. Regional Growth Fund (RGF): UK Government Funding for Job Creation and Economic Growth
6. Business Finance Guide: Understanding UK Government Funding Options

1. Start-Up Loans: UK Government Funding for Business

Start-Up Loans is a UK government initiative that offers support to entrepreneurs to set up new businesses. The scheme provides access to affordable finance, mentoring, and business support to help start-ups establish and grow their businesses. Start-Up Loans offers loans ranging from £500 to £25,000, with a fixed interest rate of 6% per annum, for up to five years.

2. Enterprise Investment Scheme (EIS): A Cheat Sheet

The Enterprise Investment Scheme (EIS) is a tax incentive scheme introduced by the UK government to provide support to start-ups and SMEs. The scheme offers tax relief to investors who purchase new shares in qualifying businesses. The tax reliefs are designed to encourage individuals to invest in small, high-risk businesses by making their investments more attractive. EIS investors can receive income tax relief of up to 30%, capital gains tax relief, and inheritance tax relief.

3. Seed Enterprise Investment Scheme (SEIS): UK Government Funding for Start-Ups

The Seed Enterprise Investment Scheme (SEIS) is a UK government initiative aimed at providing early-stage funding to start-ups. SEIS offers tax relief to investors who purchase new shares in qualifying businesses. The scheme provides a 50% income tax relief to investors up to a maximum of £100,000 per annum. There is also a capital gains tax exemption for investments held for at least three years.

4. Innovate UK: A Guide to UK Government Funding for Innovation

Innovate UK is a UK government agency that provides funding and support to businesses looking to innovate and grow. The agency offers a range of funding options, including grants, loans, and competitions. Innovate UK’s funding is available to businesses of all sizes, from start-ups to large corporations. The agency also provides mentoring and support to businesses to help them develop and commercialize their innovations.

5. Regional Growth Fund (RGF): UK Government Funding for Job Creation and Economic Growth

The Regional Growth Fund (RGF) is a UK government scheme aimed at creating jobs and boosting economic growth in the country. The fund provides grants and loans to businesses that are expanding or relocating into areas that need economic development. The RGF has already invested over £2.6bn in more than 420 projects across the country, creating over 550,000 jobs.

6. Business Finance Guide: Understanding UK Government Funding Options

The Business Finance Guide is a comprehensive guide published by the British Business Bank that provides information about the different types of funding available to businesses in the UK. The guide covers a range of topics, including loans, equity finance, and alternative finance options. It also provides information about government schemes such as the Enterprise Finance Guarantee scheme, which supports businesses that are unable to access traditional bank finance by providing a government-backed guarantee. The guide is an essential resource for any business looking to understand the funding options available to them.

In conclusion, the UK government offers a range of funding options for businesses of all sizes and stages of development. Start-Up Loans provides affordable loans for entrepreneurs looking to establish and grow their businesses. The Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) offer attractive tax reliefs to investors looking to support high-risk start-ups and SMEs. Innovate UK provides funding and support for businesses looking to innovate and RGF provides grants and loans to businesses looking to expand or relocate to underdeveloped areas. The Business Finance Guide is a comprehensive resource for businesses seeking to understand the funding options available to them. These government initiatives go a long way to support and promote economic growth in the UK.

Helpful resources to get you going in the right direction with your own business:

Use the Business Plan Builder Tool to develop your own business plan. And use the Funding Database to find all government funding options for your small business.