Funding opportunities for your small business

We understand that energy costs have been rising in previous years which can be worrying. So, it’s understandable that you need multiple ways to fund and have capital to run your business.

Luckily, there are a variety of funding options available that have been established by the UK government and organisations to help businesses if they need short- or long-term finance. 

Grants vs. Funds: know your options

When it comes to financing your business, understanding the difference between a grant and funding can help you make smarter decisions.

• Grants are targeted financial awards, often from government bodies or foundations that support specific projects or goals. They’re typically non-repayable, but come with strings attached: applications, eligibility criteria, and reporting requirements.
• Funds, on the other hand, is a broader term. It includes any money available to your business - whether from grants, loans, investments, or even personal savings. Not all funds are free money; some may need to be repaid or come with equity trade-offs.

Why it matters: Knowing the difference helps you identify the right opportunities. Take a look a this guide on how to choose a type that fits your business needs. 

The Federation of Small Businesses (FSB) has useful content on how to find the right support, see their page here for more information.

Tools

Enterprise nation has lots of handy blogs and tools to help you find the right fit for your business. Check them out below:

• See the diagnostic tool where you can get funding recommendations tailored to your needs.
• How to find funding opportunities for your business. Discover six surprising ways to fund your business growth beyond just cash grants.
• Small business grants: where to find them and how to apply.

Government backed funding for small businesses

Here's a selection of some business grants and loans 100% backed by the government available for small businesses. 

UK government

The UK government aims to make it easier for small businesses to find funding and therefore launched the Find a Grant service. The initiative is delivered by the Government Grants Management Function and aims to help organisations across the UK find and apply for funding.

Northern Ireland Government 

The Northern Irish Executive backs the Energy Saving Trust's with an 8 million fund through the Northern Ireland Sustainable Energy Programme. This funding helps businesses make energy efficiency improvements.

Explore various small business energy grants available in Northern Ireland through the Business Support Finder provided by Invest Northern Ireland.

Scottish government

The Scottish Government offer financial support through the Find Business Support service to make it easier for businesses to find the information, funding and support they need, when they need it.

They also have the Scottish Growth Scheme which provides financial support of up to £500 million for Scottish businesses to help them grow.

Welsh Government

The Welsh Government has teamed up with the Development Bank of Wales to offer financial assistance to small businesses via the Green Business Loan Scheme. This program features lower interest rates and flexible repayment options, supporting business owners in making investments in eco-friendly infrastructure.

Further funding opportunities can be accessed through the Finance Locator, where you can find a range of small business grants offered by the Welsh Government.

Other sources of funding

As well as government grants and bank loans, there are a huge range of organisations that offer financial support to small businesses.

Funding Circle

Funding Circle is an online lending platform - not a bank. The aim is to connect small businesses seeking funding for growth, investment, equipment etc with investors looking to lend. The application is completed online, make sure you read the T&C's and know what you are registering for. 

The platform provides a Business Loan Calculator to determine how much money you can borrow without effecting your credit score.

Growth Guarantee Scheme

The Funding Circle launched the Growth Guarantee Scheme (GGS), which is designed to help UK small businesses access the finance they need to invest and grow.

You're able to apply for government-backed loans and all applications are subject to standard credit and fraud checks. The scheme aims to improve loan terms for borrowers by offering business loans with better terms.

British Bank

The British Business Bank is fully owned by the Government but operates independently. It brings together expertise and government funding to support smaller businesses in accessing finance. They collaborate with over 200 partners, including banks, leasing companies, venture capital funds, and online platforms.

Businesses can use the finance finder to apply for funding through partners, who are able to offer more lending and investment, particularly to newly established and faster-growing companies.

Local Councils

Your local council may offer funding to help make invest in your small business. If you're unable to find which local council your business falls under, visit the GOV UK  website and enter your business’s postcode to find out. 

Funding options can differ from one council to another, so it's worth checking your local authority’s website or reaching out to them to learn about what’s available. 

Angel investment

An angel investor is an individual who invests their personal funds into a small business in exchange for a minority ownership stake. In addition to financial support, angel investors often provide valuable mentoring, guidance, and access to their network, helping businesses benefit from their experience, skills, and business knowledge.

Platforms like Angel Investment Network offer a space where businesses can connect with potential investors.

SME Loan Scheme

The SME Loan Scheme based in Scotland, assists businesses in funding the installation of energy-saving systems, including heat pumps, biomass boilers and air conditioning improvements. Under this scheme, business owners can secure a loan of up to £100,000, along with a cashback grant of up to £30,000.

Business Board Network

Business Board Network aims to benefit small businesses by connecting them with potential investors and funding opportunities. Through expert advice and networking, entrepreneurs gain access to financial resources, helping them secure the capital needed for growth and expansion. This support enhances their ability to scale and succeed in competitive markets.

Enquiries can be made through the Growth Hub network as they aim to help small businesses who are looking for direct assistance, business planning and financial support.