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Introduction
According to recent research from Allica Bank, UK business growth plans are at risk due to a £90bn shortfall in lending by banks to SMEs over the past 25 years. A large proportion of this SME credit gap has developed since the 2008 global financial crisis, where in the years since it is estimated to have gone up by around £65bn.
According to the report, small businesses are only able to invest into their business for develop growth at a third of the level of large corporate businesses. One of the main reasons for this has been due to only 25% of SMEs applying for external finance between 2022-2024, which is one of the lowest application rates recorded internationally according to the OECD. It is worth noting that the number of SMES applying for external finance was as high as 65% in the UK in the late 1980s. Drilling down into this loan and credit facility shortfall for UK small businesses, over the last 3 decades SME loan rejection rates have increased from an average of 5-10% up to 40% today.
If businesses are looking for alternative growth funding when they have been turned down by banks and lenders for traditional lending facilities they can try and apply for grants and Government-backed loans. Businesses can access growth grants from their local councils or business enterprise support agencies, many of which are backed by the UK Shared Prosperity Fund. There are also some national lenders who can provide access to different types of Government backed loans, such as the Growth Guarantee scheme, which is backed by the British Business Bank.
What Are Some Of the Latest UK Business Growth Grants Available?
i) Small Business Growth Grants
East Renfrewshire Council is providing a scheme for established businesses that have been trading for over 12 months in the local area to access funding to help facilitate increased turnover in the 12 months following the grant award or to sustain or grow their workforce. Funding up to £25,000 is available.
Application Deadline: Ongoing
ii) North East Derbyshire Accelerator – Growth Vouchers
The North East Derbyshire Accelerator programme is providing funding in the form of vouchers towards the cost of specialist consultancy advice or training services to support growth for businesses in the local area.
Application Deadline: 31st March 2026
iii) Growth Guarantee Scheme
Propel Finance is providing a series of debt based facilities to businesses to support growth, such as asset finance, invoice finance and asset-based lending. This scheme is backed by the British Business Bank and aims to support access to finance for UK small businesses as they look to invest and grow following the closure of the Recovery Loan Scheme. The finance can be used for working capital or growth and development activities. Funding up to £2 million is available.
Application Deadline: 31st March 2026
iv) Atempo Growth II
Atempo Growth has launched a second growth debt fund that aims to supports high-growth British and European tech startups from Series A stage funding through to pre-IPO. The British Business Bank has made a commitment of £30 million to the fund.
Application Deadline: Ongoing
v) Business Growth Grant 2025
Business Gateway Dumfries and Galloway is providing a scheme that aims to support the growth of existing businesses within the first three years of trading. Eligible expenditure can include, but is not limited to, capital equipment, exhibition support, infrastructure improvement and training support. Funding up to £20,000 is available.
Application Deadline: Ongoing
vi) Growth Grant
Bassetlaw District Council is providing a scheme for local businesses to apply for a grant to support expenditure including, but not limited to, developing a website, adaption or introduction of e-commerce systems and adaption or introduction of an electronic payment system into the business. This scheme is funded through the UK Shared Prosperity Fund. Funding up to £4,000 is available.
Application Deadline: 31st March 2026
vii) Business Growth and Productivity Grant
Nottingham City Council is running a scheme that aims to help local businesses to grow and improve their productivity, and to improve how they measure and report productivity gains. Eligible expenditure can include, but is not limited to, Client Relationship Management systems, new software development and manufacturing/production equipment and or tooling. Funding up to £15,000 is available.
Application Deadline: 6th March 2026
viii) Falkirk Growth Fund
Falkirk Council is running a scheme that aims to support business growth projects which will bring economic benefit to the area. Eligible expenditure can include the purchase of new equipment, plant and machinery, property expansion or improvements, exhibiting at trade exhibitions, Development of new products, services and processes and training. Funding up to £15,000 is available.
Application Deadline: Ongoing
How To Apply For Business Growth Schemes
Full details about how to apply for schemes and the eligibility criteria is available on each individual scheme page on the relevant website. Any deadlines, who can apply and what eligible costs the grants will cover will also be outlined on these pages. Interested businesses can speak to growth and development advisors based at each provider who can guide them through requirements and eligibility criteria to see if the relevant funding is a match with their needs and help them to apply. There are also application forms and other supporting guidance available on scheme pages as well.
Want To Find The Latest UK Business Growth Funding Opportunities?
If you want to see the full set of UK business growth funding currently available, please visit https://getbusinessgrants.com/