Capital

UK startup funding: loans, grants and investor tax relief

The UK routes that last: Start Up Loans for new businesses, SEIS and EIS to attract investors, and Innovate UK competitions, explained in pounds.

UK funding is easier to compare once you separate three jobs: a loan funds the business and must be repaid, SEIS or EIS helps eligible investors back a company, and innovation funding supports a defined project. Start with the cost and the kind of business you are building.

Amounts are in pounds sterling. SEIS and EIS are tax reliefs for your investors, not grants to you, but their value depends on investor and company eligibility; they do not guarantee a raise.

Illustrative founder decision

Separate business cash from investor tax relief

A founder needs money to hire a first engineer. A loan creates a repayment obligation; an equity round changes ownership; SEIS or EIS may help eligible investors evaluate the round. The tax-relief route itself does not put the hiring budget into the company.

A funding brief you can use

Build two plans before choosing: the amount the business can repay from a realistic cash-flow forecast, and the milestone an equity investment would finance. If the work is technically innovative, define that project separately before looking through competitions.

The next conversation

For a proposed angel round, prepare the company facts and use of funds, then obtain the appropriate tax and legal checks. For a loan, compare total repayments and personal obligations. For a competition, check its scope before spending time on the application.

Find your starting point

Scroll across to compare every column.

Your situation Look at first
Starting an ordinary young business Start Up Loans
Raising from UK angels SEIS first, then EIS
Innovation or R&D project Innovate UK competitions

Long-running UK routes

Start Up Loans

Type
Loan
Support
£500– £25,000 personal business loan; new applications at fixed 7.5% p.a.; 1–5 year repayment.
Who it fits
UK residents starting or developing a small business, including ordinary service businesses.
Key requirements
Age 18+, UK resident with right to work; UK business trading at most 60 months; unable to obtain finance elsewhere. Credit, affordability and business viability checks. Prepare business plan, 12-month cash-flow forecast, personal survival budget and three months of personal bank statements.
How to apply
Start Up Loans eligibility screen and a delivery partner.
Availability
Ongoing, through banks or lenders
Timing
Ongoing applications; after registration, maximum 90 days to submit the completed application for review. No national closing date.
Cost or condition to plan for
The individual owes the debt. A limited company does not remove this personal repayment obligation. Older 6%/36 month summaries are stale for new applications.
Last checked
16 October 2026

Seed Enterprise Investment Scheme

Type
Investor tax incentive, Equity investment
Support
Company can raise up to £250,000 through qualifying SEIS share issues; relief is for eligible investors.
Who it fits
Early companies raising risk equity from suitable private investors.
Key requirements
UK permanent establishment; qualifying new trade generally ≤ 3 years; gross assets ≤ £350,000 and fewer than 25 FTE at share issue. Independence, risk-to-capital and excluded-trade rules apply.
How to apply
Review HMRC rules; consider advance assurance; issue qualifying shares and submit compliance statement in the required sequence.
Availability
Ongoing (tax or benefit rule)
Timing
No competitive closing date. Spend qualifying investment within three years; preserve qualifying conditions for at least three years. HMRC compliance-statement timing also applies.
Cost or condition to plan for
SEIS is not a government grant or an investor introduction service. Advance assurance does not certify every investor or later transaction.
Official sources
gov.uk
Last checked
16 October 2026

Enterprise Investment Scheme (EIS)

Type
Investor tax incentive, Equity investment
Support
Most companies: up to £10 million in 12 months and £24 million lifetime qualifying risk-finance investment; special-company/KIC rules differ.
Who it fits
Growth companies raising qualifying risk equity from private investors.
Key requirements
UK permanent establishment, qualifying trade, independence and risk-to-capital tests. Generally fewer than 250 FTE, assets at most £30 million before / £35 million after investment, and initial investment within seven years of first commercial sale unless an exception applies. Specified Northern Ireland companies retain lower limits.
How to apply
HMRC current guidance → optional advance assurance → qualifying share issue → compliance statement.
Availability
Ongoing (tax or benefit rule)
Timing
No competitive closing date. Transaction, trading-age, use-of-funds and compliance deadlines apply; ordinarily use investment within two years.
Cost or condition to plan for
Investor relief is not a company cash grant. Private investors must still be found and conditions maintained. Current limits apply from 6 April 2026.
Official sources
gov.uk · gov.uk
Last checked
16 October 2026

Innovate UK competitions (Innovation Funding Service)

Type
Grant, R&D contract
Support
Varies by competition. Grant intensity depends on the project and the size of your business.
Who it fits
UK-registered businesses with a defined innovation or R&D project.
Key requirements
Each competition sets its own scope, partners, eligible costs and deadlines.
How to apply
Find and apply to a named competition on the Innovation Funding Service.
Availability
Rolling applications
Timing
Competitions open and close throughout the year. Check the portal for current ones.
Cost or condition to plan for
You usually fund part of the project yourself. Read the eligible costs before you build a budget.
Last checked
16 October 2026

How to narrow your shortlist in UK

A new consultancy seeking equipment money and a research-led startup seeking experimental-development support should not prepare the same application. For the consultancy, check personal repayment affordability first. For the startup, define the technical uncertainty and eligible project costs before searching competitions. SEIS/EIS belongs in the investor conversation, not in a forecast as guaranteed government cash.

Questions before applying

Does registering a UK company make me eligible?

No. Incorporation alone does not establish residence, right to work, a UK permanent establishment or the scheme-specific trading and ownership tests. Use the requirements for the route you are considering.

Which route should I shortlist first?

For a small trading business, compare a suitable loan with your repayment capacity. For an innovation project, start with the current competition scope and eligible costs. If you are raising equity, compare SEIS/EIS eligibility with your investor plan.

Before you apply or spend

  1. Save the current official page and check for amendments.
  2. Confirm the exact eligibility condition that applies to you, in writing if possible.
  3. Work out your own share: the unfunded part, ineligible costs and cash needed before money arrives.
  4. For loans, ask for the full repayment schedule. For equity, model dilution.
  5. Get qualified advice before signing anything with legal or tax consequences.

Not sure which route fits?

Tell me where the business operates, what you need to fund and the route you are considering. Include the condition or trade-off you want to work through.

Ask about funding routes

Related: all countries in one directory · startup accelerators · startup incubators · angel investor networks

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Sources and review: programme links lead to the provider or official authority. Eligibility and application timing are shown with each route; use the dated information for your shortlist and the linked current terms before applying.

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