The government-established Office of the Small Business Commissioner (OSBC) has been publicising its Small Business Plan that offers tailored funding to smaller businesses.
Businesses change over their lifespan, and nearly all will need external funding to help them grow. In certain circumstances, external finance is critical for survival. The OSBC is highlighting funding options suitable for small businesses and sole traders.
For start-up businesses
The OSBC says there is more funding for Start Up Loans. These should support up to 69,000 firms over the next four years. The updated scheme has also extended the age of companies defined as ‘start-up’ from three to five years. As well as money, successful applicants will get a mentor to work with for a year.
The scheme provides £500 to £25,000 to start or grow a business. Unlike a business loan, this is an unsecured personal loan, and individuals will need to pass a credit check.
For more information, go here: https://www.gov.uk/apply-start-up-loan
For growing businesses
On 12 July 2026, the Chancellor announced an increase in capacity for the Growth Guarantee Scheme (GGS), which is administered by the British Business Bank. Under this scheme, the government guarantees up to 70% of the loan to the participating lenders. There are restrictions on what can be requested in the form of personal guarantees i.e. people are not asked to put their home on the line.
The updated scheme has an extra £6.5bn of market lending over the next four years to help an estimated 33,000 businesses. The terms include an increase in small company turnover level eligibility and will underwrite loans of up to £2 million.
There are a wide range of products supported by different lenders, including term loans, overdrafts, asset finance, invoice finance and asset-based lending.
For more information, go here: https://www.british-business-bank.co.uk/finance-options/debt-finance/growth-guarantee-scheme
For businesses raising from Community Development Finance Institutions (CDFIs)
The OSBC is reminding groups of the £150 million of Community ENABLE funding. This allows CDFIs to on-lend to small businesses. CDFIs are not-for-profit lenders who lend locally.
CDFIs are represented at a national level by Responsible Finance, which has been asked to work on a roadmap to expand the capacity of the CDFI network to support even more small businesses. The lender network helps individuals, businesses and social enterprises access alternative finance with free loan-matching services.
For more information, go here: https://responsiblefinance.org.uk/
For businesses upgrading boilers
As part of the ongoing national decarbonisation project, the OSBC is highlighting the Boiler Upgrade Scheme. Businesses can access a £7,500 grant to cover part of the cost of replacing fossil fuel heating systems with a heat pump or biomass boiler.
For more information, go here: https://www.gov.uk/apply-boiler-upgrade-scheme
For businesses affected by security concerns
UK tech start-ups and other innovation businesses can now apply for government support to protect their intellectual property from powerful competitors, including threats from other states and hostile actors,
Only up to 500 Small to Medium-sized Enterprises (SMEs) will be eligible to receive £2,500 to strengthen their security. This includes expert advice on strengthening checks on prospective employees to reduce insider threats and ensure their suitability for handling sensitive information and key cyber security measures to guard against common cyber-attacks.
It will be delivered by Innovate UK.
For more information, go here: https://www.gov.uk/government/news/new-backing-for-small-businesses-to-protect-their-intellectual-property-from-security-threats
For high-growth SMEs
The Intellectual Property Office (IPO) IP Audit Scheme provides part-funding of £2,250 (including VAT) towards the cost of an IP audit conducted by a suitably qualified IP professional. The business must contribute £750 towards the overall cost of the audit. This is delivered by IPO partners in all regions of the UK.
For more information, go here: https://www.ipo.gov.uk/ip-support/welcome
For businesses taking on apprentices
Alongside full apprenticeships, the Growth and Skills Levy can now support foundation apprenticeships and approved apprenticeship units. This aims to give businesses greater flexibility in addressing specific skills gaps, upskill employees faster and access shorter, targeted training programmes without committing staff to a full apprenticeship.
For SMEs that do not pay the levy, government support remains. From August 2026, non-levy employers receive 100% funding for apprentices aged 16 to 24, up to the funding band maximum. For apprentices aged 25 or over, employers contribute just 5%, with the government paying the remaining 95%.
Eligible non-levy employers may also qualify for a hiring incentive of up to £2,000 when recruiting a new apprentice aged 16 to 24 from October 2026.
For more information, go here: https://www.gov.uk/government/publications/apprenticeship-funding/apprenticeship-funding
Next steps
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