UK government business loan schemes 2026
The UK government supports SMB lending through scheme-backed products. Some are active, some closed but still relevant for refinance. This page is the working tracker.
Director, BestBusinessLoans
Oliver leads BestBusinessLoans's editorial reviews and methodology. With a background in UK commercial finance, he oversees lender research, rate verification and review independence.
Last reviewed: 26 April 2026
Growth Guarantee Scheme (active)
Replaced the Recovery Loan Scheme in 2024. Government-backed 70% guarantee to participating lenders, run by the British Business Bank. Available to UK SMEs (under £45m turnover) for term loans, asset finance, invoice finance and overdrafts. Tickets typically £25k to £2m. Accessed via accredited lenders (Funding Circle, Allica, Aldermore, Time Finance and others) rather than directly. Best fit for established Ltd companies with a credible growth case but a credit profile mainstream banks would refuse on commercial terms.
British Business Bank Start Up Loan (active)
Personal loan to a UK founder for business purposes, up to £25,000 per founder. 6% fixed APR. 12 months free mentoring. Government-backed via the British Business Bank. Best for pre-revenue or sub-12-month-trading founders mainstream lenders will not engage with.
Recovery Loan Scheme (closed but referenced)
Closed June 2024 to new applications. Existing RLS facilities continue under their original terms. If you have an RLS facility you want to refinance, mainstream UK SMB lenders accept the refinance subject to standard underwriting; the scheme guarantee stays attached to the original facility.
Bounce Back Loan (closed but refinance-relevant)
Closed March 2021. Existing BBL facilities continue with the Pay As You Grow option (extended term, payment holiday, interest-only periods). Refinancing a BBL into commercial lending is possible but worth modelling carefully, the BBL's 2.5% fixed rate is below most commercial alternatives.
Innovate UK Loan Finance
Sector-specific loans for innovation-led businesses. £100k to £1.6m for late-stage R&D and commercialisation. Available to UK companies registered with Innovate UK with a clear technical-innovation project. Fits tech, biotech and engineering.
Where to apply
For Growth Guarantee Scheme, apply via an accredited lender (the British Business Bank publishes the list). Our broker panel routes Growth Guarantee Scheme applications to the right lender for your sector. For Start Up Loan, apply directly via the Start Up Loans Company website.
FAQ
Is the Growth Guarantee Scheme cheaper than commercial lending?
Not always. The scheme guarantee makes it easier to qualify, but the commercial rate the lender offers under the scheme is set by the lender. Mainstream commercial lending without the scheme can be cheaper for clean-credit borrowers.
Can I have multiple government scheme loans?
Subject to each scheme's rules. Most schemes allow stacking with non-scheme borrowing. Stacking multiple government schemes (e.g. Start Up Loan + Growth Guarantee Scheme) is rare and lender-dependent.
Reviewed by Oliver Mackman, Director. Last reviewed: 2026-04-26.