The UK's New Small Business Plan: 5 Ways to Cash In on Government Support Right Now

If you're running a small business in the UK and feel like you're constantly swimming upstream, you're not alone. With 90% of all UK enterprises being microbusinesses and around half of startups failing within three years [3], the government has finally stepped up with a game-changing support package. In July 2025, they launched the "Backing Your Business" plan – and it's packed with opportunities you can tap into right now.

This isn't just another political announcement that sounds good on paper. We're talking about real money, genuine support, and practical changes that can make a tangible difference to your bottom line. The best part? Many of these programs are designed specifically for businesses like yours – the ones that don't have teams of accountants hunting down every grant opportunity.

Let's cut through the jargon and get straight to the five ways you can start benefiting from this new plan today.

1. Grab Start-Up Funding Even If You're Not Actually Starting Up

Here's something that might surprise you: the government's Start-Up Loans program isn't just for brand-new businesses anymore. They've expanded it massively to reach 69,000 new businesses over the next four years, and crucially, they've extended eligibility from businesses aged 3 years to 5 years old [2].

What does this mean for you? If you started your business any time after 2020, you now qualify for this program. That's a game-changer for thousands of businesses that were previously stuck in that awkward middle ground – no longer "start-ups" but not yet established enough for traditional business loans.

The program doesn't just throw money at you either. You get mentoring support alongside the funding [10], which addresses two major barriers to small business success in one go. Think of it as getting both the fuel and the roadmap for your business journey.

Action step: Check if your business qualifies and start your application process. Don't wait – demand for these loans is high, and getting in early gives you the best chance.

2. Access Serious Growth Finance Without Risking Your House

The Growth Guarantee Scheme has been given a permanent footing, and it's designed to solve one of the biggest headaches for small business owners: getting proper funding without putting your personal assets on the line [2].

Here's how it works: the government guarantees 70% of your loan to participating lenders, which means banks are much more likely to say yes to your application. You can borrow up to £2 million through various products including term loans, overdrafts, asset finance, invoice finance, and asset-based lending [2].

The real kicker? There are restrictions on personal guarantees, meaning lenders can't demand you put your home up as collateral [2]. For many small business owners, this removes the single biggest barrier to accessing growth capital.

The British Business Bank administers this scheme, and it's specifically designed for smaller businesses that want to invest and grow [2]. Whether you need equipment, working capital, or funds for expansion, this could be your ticket to the next level.

Action step: Contact your bank or visit the British Business Bank website to understand what products are available and start the application process.

3. Tap Into £340 Million for Innovation and Early-Stage Growth

If your business is developing something new – whether it's a product, service, or innovative approach – there's a massive £340 million fund specifically for early-stage equity finance [4]. This isn't about traditional loans; this is about investment funding that doesn't saddle you with debt.

The government is working directly with private lenders to ensure fair and transparent use of personal guarantees, and they're expanding the ENABLE programme to unlock additional finance options [4]. These measures are designed to remove what they've identified as one of the most significant barriers to growth: access to appropriate funding at the right stage of your business development.

This type of funding is particularly valuable if you're in tech, manufacturing, creative industries, or any sector where you're developing intellectual property or innovative solutions. The fund recognizes that innovation often needs patient capital – money that doesn't expect immediate returns but supports longer-term growth potential.

Action step: Research whether your business fits the innovation criteria and connect with organizations that can help you access this funding stream.

4. Win Government Contracts as a National Priority

This is huge: SMEs have been designated as a national priority in the new government procurement system [3][4]. Translation? The government actively wants to give you their business, and they're making it easier for you to compete.

The new Business Growth Service acts as a central hub to simplify finding advice and support, including a streamlined digital platform to help you navigate opportunities [3]. This is addressing a real problem – government contracts have historically been dominated by large corporations simply because the procurement process was too complex and opaque for smaller businesses to navigate.

Now, with SME priority status and simplified processes, you have a genuine shot at winning contracts that were previously out of reach. Government contracts can provide stable, predictable income streams that help you plan and grow with confidence.

Action step: Register with the new Business Growth Service and start exploring what government contracts might be available in your sector.

5. Go Global with Massive Export Finance Expansion

If you've ever considered selling your products or services internationally but thought it was too complex or risky, the government has your back. UK Export Finance's capacity has been expanded by £20 billion to help small firms win business overseas [3][4].

This massive increase in capacity means way more small businesses can now access export financing and support. The government is actively pushing to help small businesses leverage the UK's multiple Free Trade Agreements [5], and the new Business Growth Service provides guidance on everything from leveraging intellectual property to finding export opportunities [4].

International expansion isn't just for big corporations anymore. With this level of support, even microbusinesses can start competing globally and accessing markets that were previously out of reach.

Action step: If you have products or services that could work internationally, contact UK Export Finance to understand what support is available for your specific situation.

Bonus Benefits: High Street and Payment Reforms

If you operate a physical business, there's more good news coming. Permanently lower business rates multipliers will take effect in April 2026 for properties with a rateable value below £500,000 [4]. The government is also banning upward-only rent review clauses in commercial leases and championing High Street Rental Auctions to bring empty properties back into use [4].

For hospitality and leisure businesses, a new pro-growth national approach to licensing will support al fresco dining and late-night venues [4], making it easier and more affordable to operate.

Plus, comprehensive late payment reforms are coming that will save SMEs time and money chasing invoices. This includes new legislation and increased enforcement requirements for large companies to publish their payment performance [5]. If you've ever waited months to get paid by a big client, you know how valuable this could be.

The Skills and Digital Transformation Angle

The plan also includes £1.2 billion per year in skills and apprenticeships investments, plus programs like Made Smarter Adoption for digital transformation [4]. This means you can access training and support to upskill your team and modernize your operations without bearing the full cost yourself.

Don't Wait – Start Today

The beauty of this plan is that it's not pie-in-the-sky promises for some distant future. Many of these programs are live right now, and others are rolling out over the coming months. The government has clearly recognized that small businesses are the backbone of the UK economy, and they're putting serious money and infrastructure behind supporting you.

The key is to act quickly. These aren't unlimited pots of money, and demand is likely to be high. Start by identifying which of these five opportunities best fits your current situation and growth plans, then take that first step.

Your business doesn't have to struggle alone anymore. The support is there – you just need to reach out and grab it.

Sources:

[1] GOV.UK - Backing Your Business Plan Launch [2] British Business Bank - Growth Guarantee Scheme Details [3] GOV.UK - SME Support Statistics and Priorities [4] HM Treasury - Business Growth Service and Innovation Fund [5] Department for Business and Trade - Export Finance Expansion [10] Start Up Loans Company - Mentoring Support Programs