Government-backed business loans use public guarantees or funding to widen access to finance for UK businesses. They are not free money — you still repay — but they can unlock lending and better terms.
The main schemes
- Growth Guarantee Scheme: a government guarantee to lenders for SME term loans, overdrafts and asset/invoice finance up to ~£2m.
- Start Up Loans: government-backed personal loans (£500–£25,000) for new founders, with mentoring.
- Regional and devolved schemes: growth hubs and the British Business Bank’s regional funds.
How they help
By reducing lender risk, these schemes make it easier for viable businesses — including newer or thinner-file ones — to borrow at sensible rates. The borrower normally remains fully liable for repayment.
How to access them
Most are delivered through accredited commercial lenders rather than the government directly. Comparing accredited lenders (or using a broker) ensures you get the scheme benefit and a competitive deal. Also check grants, which never need repaying.
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Get your free quoteThis article is general information, not financial advice. Eligibility, rates and terms vary by lender and your circumstances. The Loans Hub is a finance broker, not a lender.
