Support for small businesses

The UK Government can support small businesses by providing advice, loans and investments (through the British Business Bank and its delivery partners), tax incentives and (in limited circumstances) subsidies.

This briefing provides an overview of the support available to small businesses in the UK.

Non-financial support

The government launched the Business Growth Service via its website Business.gov.uk in 2025, as a single point of entry for businesses looking for advice, support and growth opportunities.

The government also provides general information to businesses through websites and telephone helplines. These can cover advice, such as on tax or exporting goods and services, and information on other support schemes that small businesses can access.

Local authorities also offer advice to businesses, which is usually available through their websites (for example, the City of Edinburgh Council’s business page).

Other non-financial assistance includes help with government procurement and the services of the Small Business Commissioner, which helps resolve payment disputes between small businesses and larger customers.

Lending

The UK government supports access to finance for small businesses through programmes delivered by the British Business Bank, a government-owned but operationally independent institution. The Bank’s sole shareholder is the Secretary of State for the Department for Business and Trade. Lending and investment under its programmes are delivered through accredited delivery partners, such as lenders and fund managers, depending on the specific scheme or fund.

The schemes administered by the British Business Bank include:

• Start Up Loans scheme, where entrepreneurs can apply for a loan up to £25,000 to help start a new business.
• Growth Guarantee Scheme (GGS), which provides 70% government-backed guarantee for accredited lenders lending to small businesses. GGS is designed to support access to finance for UK smaller businesses as they look to invest and grow. The Growth Guarantee Scheme launched with accredited lenders on 1 July 2024, with 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 and provides the lender with a 70% government-backed guarantee.

• ENABLE programmes, which support lenders to provide finance to small businesses.

The government also supports small businesses through other schemes, such as Innovate UK (to help develop and commercialise new products) and UK Export Finance (for exporting businesses).

Equity investment

Equity investment is the process of raising capital by selling shares in a company. Investors take a stake in the company with the aim of selling it at a profit when the company has expanded.

The government runs schemes to encourage private investment in small businesses, including tax breaks for investors who buy equity in companies at an early stage (such as HM Revenue and Customs’ venture capital schemes) or by jointly investing in small businesses.

In some cases, the investments are tied to specific sectors, or geographical regions.

Subsidies

Subsidies are forms of financial support provided by a public body to a business on terms that would not be available under normal market conditions. This can include grants, tax reliefs, loans offered at below-market interest rates, and government-backed guarantees.

The UK’s subsidies are regulated by the Subsidy Control Act 2022, which aims to ensure that financial assistance does not distort competition within the UK or adversely affect international trade.

If a business applies for individual financial support or financial assistance falling within the scope of subsidy schemes, its application will generally be assessed against the principles of the act. However, subsidies worth under £315,000 (known as minimum financial assistance) might not need to comply with all subsidy control requirements.