Funding and support

There is more support for Scottish businesses than most people realise — and a lot of it is free. The best way to find your way through it is to think about what you need right now. This chapter is organised that way.

“I need advice”

Start here. It costs nothing.

• Business Gateway — Scotland’s free national business help service. Free one-to-one advisers, hundreds of workshops, and templates for plans and cash flow. It is your first port of call for almost anything.
• Find Business Support (findbusinesssupport.gov.scot) — a national website that lists all the public grants, loans and events in one searchable place. This is the tool for finding money.

There are also enterprise agencies for your area, offering deeper support to businesses that want to grow:

• Scottish Enterprise — most of Scotland.
• Highlands and Islands Enterprise (HIE) — the Highlands and Islands.
• South of Scotland Enterprise (SOSE) — Dumfries & Galloway and the Scottish Borders.

“I need money to start — under £25,000”

• Start Up Loan — a government-backed personal loan of £500 to £25,000 at a fixed 6% a year, for people starting out. It comes with free mentoring. Each partner in a business can apply for their own. This is the workhorse for first-year founders.
• DSL Business Finance — a not-for-profit lender across central Scotland (loans up to about £50,000). It also runs the Scottish Microfinance Fund, and lends where banks say no.

“I need more — £25,000 to £250,000”

• Business Loans Scotland — owned by Scotland’s 32 councils. Loans of roughly £25,000 to £100,000 (up to £250,000 under the Scottish Growth Scheme). Loans up to £50,000 are usually unsecured.
• Scottish Growth Scheme fund managers — including UMi Debt Finance Scotland (£25k–£250k) and, for equity, Techstart Ventures and Foresight Group.
• British Business Bank Growth Guarantee Scheme — a UK-wide scheme that helps you borrow through approved lenders.

“I’m doing something new or innovative”

• SMART:SCOTLAND — grants for genuinely new technology, for smaller businesses.
• Innovate UK — UK-wide competitions for innovative projects.
• Interface — connects businesses with universities, with funding to work together.

Grants — the important small print

Grants are money you do not pay back — but they come with conditions.

Common grant routes include local council grants, sector funds (like the VisitScotland Growth Fund and the Regional Food Fund), Business Energy Scotland help for saving energy, and the King’s Trust for young entrepreneurs (grants plus mentoring).

Help for particular trades and places

• Tourism: VisitScotland (advisers and a Growth Fund).
• Food and drink: Connect Local (advice and the Regional Food Fund).
• Creative businesses: Creative Scotland and the Cultural Enterprise Office.
• Rural businesses: GrowBiz.
• Saving energy and waste: Zero Waste Scotland and Business Energy Scotland.
• Skills and training: Skills Development Scotland.

“I’ll sell a share of my business”

You can also raise money by giving investors a share (equity):

• Business angels and Scottish co-investment (through Scottish Enterprise and Techstart).
• Crowdfunding and peer-to-peer lending.
• For limited companies, the EIS and SEIS schemes give your investors UK-wide tax breaks, which makes investing more attractive.

Taking investment means giving up some control and doing legal paperwork, so get advice — Business Gateway and mygov.scot both have guidance.