Government Business Support Schemes Update: What’s Available in 2025

The UK government’s pandemic-era support furlough (CJRS) and emergency business loans (CBILS, BBLS, CLBILS) ended between March and September 2021. However, businesses in 2025 now have access to a new generation of growth-focused, investment-led finance schemes that are designed to support expansion, cash flow, innovation and regional development.

Below is the most accurate, up-to-date overview of the government-backed finance options available for UK businesses in 2025.

Major Changes Since 2021

• CJRS (Furlough) ended 30 September 2021
• CBILS, BBLS, CLBILS ended 31 March 2021
• Replaced by post-pandemic Recovery Loan Scheme (RLS) → now evolved into the Growth Guarantee Scheme (GGS)
• The government focus has shifted from survival support to investment, innovation, job creation and regional growth

Government-Backed Business Finance Available Now (2025)

1. Growth Guarantee Scheme (GGS)

Launch: July 2024
Runs Until: 31 March 2026

The Growth Guarantee Scheme is the UK’s flagship government-backed business lending programme the successor to the Recovery Loan Scheme.

Key Features

• Loan Amount: £25,001 to £2 million per business
• Government Guarantee: 70% to lenders
• Interest: Commercial rates (typically 5–15%)
• Loan Term: 3 months to 10 years
• Use Cases: Working capital, refinancing, equipment purchase, expansion projects

Eligibility

• UK-based businesses
• Turnover up to £45 million
• Typically at least 24 months trading
• Viable business plan
• Strong credit history (flexible depending on lender)

How to Apply

• Apply through 20+ accredited lenders (HSBC, Lloyds, Barclays, NatWest, Metro Bank, Starling, specialist lenders)
• Decision time: Usually 2–4 weeks
• Funds released: Typically 1–2 weeks after approval

2. Start Up Loans Programme (Government-Backed)

The Start Up Loans scheme is still active and remains a core finance option for entrepreneurs and early-stage businesses.

Key Features

• Loan Amount: Up to £25,000 per applicant
• Interest Rate: Fixed 6%
• Term: 1–5 years
• Fees: No set-up or early repayment fees
• Extra: 12 months of free mentoring

Eligibility

• UK resident
• Business trading less than 36 months
• Suitable where the founder cannot access traditional bank finance

Note: While multiple founders can each apply individually, the official limit is £25,000 per borrower, not automatically per director.

3. Innovate UK – Innovation Loans (R&D Funding)

For businesses developing new products, technologies, or processes.

Key Features

• Loan Amount: Typically £100,000 to £2 million (depending on competition)
• Interest Rate: Competitive (varies by round)
• Term: Up to 10 years, with repayment holidays
• Used For: Late-stage R&D
  • Prototyping
  • Testing
  • Market validation
  • MVP development

Application Windows

Innovate UK runs quarterly competitions, each with its own deadlines and funding pot.

4. British Business Bank Regional Investment Funds

These programmes provide loans and equity funding across specific UK regions:

Current Regional Funds

• Northern Powerhouse Investment Fund (NPIF) – £1.6bn
• Midlands Engine Investment Fund (MEIF) – £1bn
• South West Investment Fund (SWIF) – £200m
• Plus devolved nation support:
  • Scotland – Scottish Growth Scheme
  • Wales – Development Bank of Wales
  • Northern Ireland – Growth Finance Fund

Typical Funding Amounts

• £25,000 – £2 million, varying by region and lender

Sector-Specific Support in 2025

Green & Net Zero

The UK doesn’t run a single national “Green Recovery Loan Scheme” in 2025 however, multiple green funding channels exist, including:

• Net Zero Innovation Portfolio (grants up to £5m)
• Local authority low-carbon investment funds
• Regional green growth programmes
• Energy-efficiency grants and heat-pump capital support (up to 30% in some programmes)

Creative Industries

• Creative Scale-Up Investment: £50,000 – £500,000
• BFI production financing
• Arts Council & local creative-growth grants

Export Businesses

• UK Export Finance (UKEF): Export credit guarantees and working capital
• Trade Show Access Programme: Grants for international exhibition attendance

Expert Insights: What Accountants Recommend

Kirsty McGregor, CFN Chairman, says:

“While emergency schemes are long gone, the Growth Guarantee Scheme remains one of the most attractive finance options available. Advisers should check client eligibility well ahead of the March 2026 deadline.”

James Hurley, The Times – Enterprise Editor, adds:

“The UK has shifted from crisis support to growth support. Businesses that strengthened post-pandemic can now secure competitively backed finance to scale.”

Application Process – Step-by-Step (GGS Example)

1. Prepare Documents

• Last 2 years’ accounts
• Management accounts
• Cash flow forecast
• Business plan

2. Select an Accredited Lender

Compare banks and specialist lenders based on rates, flexibility, and loan types.

3. Submit Application

• Decision usually in 2–4 weeks

4. Receive Funds

• Typically 1–2 weeks after approval

Current success rate: ~78% for complete applications.

Important 2025 Deadlines to Note

• Growth Guarantee Scheme: Open now → closes 31 March 2026
• Innovate UK Loans: Quarterly competitions
• Start Up Loans: Ongoing
• Next UK Budget: Expected March 2026

Government is expected to announce successor business finance programmes at the 2026 Budget.

What This Means for Your Business in 2025

If you used furlough:

These schemes ended in 2021 focus now shifts to expansion and cash flow financing.

If you need working capital:

GGS is currently the strongest option.

If you’re a startup:

Start Up Loans provide accessible, low-cost finance plus mentoring.

If you’re innovating or building tech:

Innovation Loans + R&D tax credits offer significant development support.

Next Steps: Check Your Eligibility

• Growth Guarantee Scheme: British Business Bank eligibility checker
• Start Up Loans: startuploans.co.uk
• Innovation Loans: innovateuk.ukri.org
• Regional Funds: Contact your Local Enterprise Partnership (LEP)

Always verify details on official government channels before applying.

Need Assistance?

If you’re unsure which scheme suits your business, consult your accountant or finance adviser. The UK’s 2025 funding landscape is built around growth, not crisis ensure you’re applying for the right programme for today’s business environment.