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 DIUS 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.
Enterprise Capital Funds
Late Payment
Legislation does not prevent business from setting own terms with customers, including level of interest charged.
Regional Venture Capital Funds
England-wide programme provides amounts to £500,000 for SMEs that show growth potential.
Small Loans for Business
Start-ups and others who cannot obtain funds from mainstream sources could benefit.
Small Firms Loan Guarantee
Presents the main features of the SFLG, current lender names and details of sector restrictions.