Finance, Funding and Grants in Sunderland

The Business Growth Fund is a £3.5m programme of investment funded by the UK Shared Prosperity Fund that supports business growth across the areas of Gateshead Metropolitan Borough Council, North Of Tyne Combined Authority and Sunderland City Council.

Grants of between £20,000 and £300,000 are available at variable intervention rates of up to 30%, dependent upon the amount requested, the need for grant support and the level of impact in terms of job outcomes and productivity improvements. Grant applications must involve eligible capital expenditure of at least £66,666 as a minimum, and grants may support capital expenditure on plant, machinery, equipment, premises and fit-out works that enable business growth, and productivity improvements.

Eligibility: Available for business that are trading who are looking to grow, and can evidence sales. 

Website: https://www.businessgrowth.fund/

Business Enterprise Fund is a non-profit social enterprise that provides loans to businesses where other lenders may not have been able to assist. They offer varied loan types from £500 to £250,000 dependent on the stage of your business.

Loans from the Hospitality Recovery Fund are available to hospitality, food, retail and supply chain businesses across Yorkshire, the Humber and Tees Valley that have been affected by Covid-19. See the website for more information.

Eligibility: Loans are available for all stages of business including businesses not yet trading. 

Website: http://www.befund.org/

Tel: 0800 080 3145

E-mail: [email protected]

The North East Fund (including loans and investment) provides £120m of investment finance for small and medium-sized businesses in North East England (Durham, Gateshead, Newcastle Upon Tyne, Northumberland, North Tyneside, South Tyneside or Sunderland) across five separate funds:

- Small Loan Fund (£10,000 to £50,000 in loans)

- Innovation Fund (up to £500,000 via loans or equity investment)

- Venture Fund (£200,000 up to £1m in equity and mezzanine debt)

- Development Capital Fund (£400,000 to £2m via debt finance, mezzanine loans or equity investment)

- Growth Capital Fund (£100,000 up to £500,000 via debt, mezzanine or equity investment)

Eligibility: Available for businesses that have begun trading.

Website: https://www.northeastfund.org/

Online contact form: https://www.northeastfund.org/contact-us/

Tel: 0191 211 2300

E-mail: [email protected]

If you are looking for funding then Key Fund may be able to help.

Providing tailored grants and loans to support the development and growth of new and existing social enterprise activity in the North of England. Funding can be used to support revenue or capital costs, including bridging facilities, capital purchases, cashflow, refurbishment costs, running costs, set-up costs, and wages.

They also deliver bespoke workshops and one-to-one support.

Eligibility: Available for businesses that have begun trading but you must be a registered/incorporated company providing positive social or environmental impact. The fund can not support sole traders or partnerships of individuals. Applicants must have already approached a commercial lender and been refused, prior to submitting a proposal.

Website: https://thekeyfund.co.uk/

Tel: 0330 202 0559

E-mail: [email protected]

A programme to help social enterprises and social entrepreneurs to scale up or kickstart their ventures.  Grants are available of up to £10,000, and a range of support services including one-to-one mentoring from experienced business professionals to advise on key areas of social enterprise such as developing a business plan, marketing strategies, seeking finance and how to report social impact.  Participants can also access networking opportunities to connect with other social entrepreneurs, plus events and workshops for exchanging ideas and best practice.  The programme is fully funded by the Department for Culture, Media & Sport.  To register your interest, contact the local provider for your area. 

Eligibility: Social enterprises who are not yet trading, or have been trading less than 5 years, with annual  turnover below £250k

Closing date: March 2025 

Website: https://www.gov.uk/guidance/social-enterprise-boost-fund-local-areas-of-delivery

Do you have a charitable organisation?

If so the Sir James Knott Fund may be able to offer a grant (value is dependent on the applicant). Special consideration is given to charitable activities known to have been of interest to Sir James Knott. They include military and maritime organisations, youth clubs, projects to help those in hardship and the elderly, education and training, heritage and culture.

Eligibility: Available for charities, community groups, and social enterprises that have begun trading.

Website: http://www.knott-trust.co.uk/

Tel: 0191 486 2825

Email: [email protected]

North East Property Fund can offer loans from £250,000 up to £1 million for small-scale, non-speculative residential and commercial developments in Tyne & Wear, Northumberland, and County Durham. This might include new housing developments, new offices, industrial and warehouse developments, and refurbishment projects. Contact the team to discuss project specifics.

Eligibility: Available for businesses trading over 24 months (small and medium-sized construction and property development companies).

Website: https://fwcapital.co.uk/about-us/funds-we-manage

E-mail: [email protected]

This programme offers grant funding and advice to small and medium-sized businesses looking to gain a competitive advantage and accelerate growth by unlocking their innovation. 40% grant funding for projects from £5,000 to £50,000.  

Eligibility: Available to SMEs in Northumberland, Tyne and Wear or Durham that have been trading for at least 12 months and operate business-to-business (B2B) 

Website: https://www.ne-bic.co.uk/innovation/

Tel: 01915166039

This is an open-call application process (with no funding windows or rounds), for grants from £1,000 to £5,000 to assist North East businesses that have been impacted by either Covid or other recent economic shocks.

Eligibility: Applicants should be able to demonstrate that they had a healthy business before COVID-19, that they have been significantly impacted by COVID-19, and that targeted assistance of a cash grant and/or training can assist their recovery. All grants of any type are subject to availability. See the website for further details.

Website: https://opennorthfoundation.co.uk/#grantapplication

Email: [email protected]

Powerhouse Investment Fund 2 offers a range of commercial finance options with smaller loans and debt finance from £25,000 to £2 million and equity investment up to £5 million. 

The loans they currently provide are listed below:

Smaller loans - Small business loans from £25,000 - £100,000

Debt finance - Business loans from £100,000 - £2,000,000

Equity finance - Early stage or late stage equity funding up to £5,000,000

Eligibility: Available for businesses that have begun trading (with growth potential).

Website: https://www.british-business-bank.co.uk/nations-and-regions-investment-funds/northern-powerhouse-investment-fund-ii-npif-ii/

A UK-wide, government-backed initiative financed through British Business Bank, providing loans for people starting a new business or have been trading for less than 3 years. Loans range from £500 to £25,000 with a fixed interest rate of 6% over 1-5 years. The scheme also offers 12 months of mentoring for successful loan applicants.

- The scheme is open to those over the age of 18 at the time of application

- Applicants must live in the UK. They must also have the right to remain in the UK for the duration of the loan term and the right to be self-employed.

- Applicants should be unable to access alternative finance for starting a business elsewhere.

- As part of the application process, a credit check will take place. Applicants with recent defaults or poor credit histories should check with a credit reference agency to ensure their records are up to date before applying.

Eligibility: https://www.startuploans.co.uk/faqs-2/eligibility/

Website: https://www.startuploans.co.uk/

Tel:0344 264 2600

E-mail: [email protected]

Start Up Loans also offers the below products through the listed dedicated providers.

Sharia compliant finance
The Start Up Loans Company provides a Sharia compliant investment product. This is provided through the Financing Startup Enterprise Group.
https://www.startuploans.co.uk/sharia-compliant-finance/
Tel: 0330 056 2528 

Creative Businesses
The Start Up Loans company provides loans specifically for the creative sector. This is provided through Creative England.
https://www.wearecreative.uk/investment/
Apply via the website.

Ex-service personnel
For military spouses & partners, reservists, cadets and children of forces personnel with entrepreneurial ambition.
Website: https://www.x-forces.com/
Tel:0800 368 9533
E-mail: [email protected]

Is your business over 12 months old and looking to grow? The Government's new Help to Grow programme could help.

The scheme offers decision-makers and senior managers access to a 12 week programme, designed to be manageable alongside full-time work. It combines a practical curriculum with 1:1 mentoring, peer-learning and alumni networking. Participants are enabled to develop their skills in areas such as financial management, innovation and digital adoption, working towards a tailored business growth plan to lead their business to its full potential.

Delivered by leading business schools across the UK, the programme is 90% subsidised by the government, with participants contributing £750. Some business schools delivering the Help to Grow Management programme are providing bursaries of £750 - more information is available directly from the business schools.

Eligibility: Available for limited companies who have been trading over 12 months with between 5-249 employees. If your business employs between 10 and 249 people, you can send up to two participants on the course. For more information, please read the FAQs.

Website: https://smallbusinesscharter.org/help-to-grow-management/


As well as this scheme, you can find more information and support resources for starting and growing a business on the Government's Help to Grow campaign website: https://helptogrow.campaign.gov.uk/

Seed Enterprise Investment Scheme is an equity scheme aimed at small riskier, early stage UK companies willing to hand over equity in their business in exchange for capital funding. It is designed to boost economic growth in the UK by promoting new enterprise and entrepreneurship. You can raise a maximum of £250,000 through SEIS.

The following criteria must be met by the company in order to be eligible and remain SEIS compliant:

- Must be established in the UK
- Must be fully independent (has not been controlled by another company since their date of incorporation)
- Must not be a member of a partnership
- Does not control another company unless that company is a qualifying subsidiary
- Must be unquoted before beginning SEIS (not listed on any major stock exchange)
- Has no arrangements to become a quoted company or a subsidiary of one at the time of the share issue
- Must be operating in a qualifying trade
- Must have fewer than 25 full-time equivalent employees when the shares are issued
- Must not have gross assets over £350,000 when the shares are issued

Website: https://www.gov.uk/guidance/venture-capital-schemes-apply-to-use-the-seed-enterprise-investment-scheme 

E-mail: [email protected]

Advanced Learner Loan helps with the costs of a college or training course. The course must have started on or after 1 August 2016 and be an eligible Level 3, 4, 5, or 6 courses, e.g. A-Levels or graduate certificate. Information about how to apply can be found here. The loan, which must be paid back, doesn't depend on income and there are no credit checks.

If you’re studying a Level 3 qualification, you might be eligible for an ‘Adult Education Budget’ grant instead of an Advanced Learner Loan. If you get a grant, you do not need to repay it. Ask your college or training provider about grants before you apply for a loan.

There is also a bursary fund; you may be eligible for support from the Advanced Learner Loan Bursary Fund for help with learning or living costs, e.g. childcare, accommodation expenses, course materials, a support assistant for learners with a disability or learning difficulty.

Applications for the bursary are made directly to the college or training provider and can be applied for as soon as you have received your confirmation letter of the Advanced Learner Loan. In some cases, money from the fund may have to be paid back.

In regards to making repayments if you are an employee, your employer will work out the repayments due and deduct them from your salary (with prior agreement). If you are self-employed you can make repayments as part of your self-assessment tax return. Additional repayments can be made at any time without an extra charge.

To support employees who wish to undertake professional development, employers can elect to make voluntary payments for part or the whole of the loan amount, on behalf of their employees. Employers can also make individual agreements with their employees about loan repayments. In either case, employers are urged to take their own independent advice on how the tax rules apply to them and their employees and any consequences of potential payments that they may make for their employees.

There are no upfront fees for this facility and you will only have to start repaying the loan the April after your course ends - details of Plans and income thresholds can be found here (though you can choose to start paying before this without any penalties). Speak to your preferred college for information on whether the course that you will be studying is eligible and which Plan you will be on when you start repayments.

Website: https://www.gov.uk/advanced-learner-loan

BGF invests in a range of companies, from earlier stage SMEs of £1m revenues, to those with £100m+ revenues, and across all sectors. Investments provided range  are a mix of equity and loan notes for growth and/or cash out to existing shareholders. Initial investments are between £1m and £20m.

The BGF works with companies that have realistic expansion plans, offering a collaborative approach to financing growth, working closely with the companies in which they invest.

Website: https://www.bgf.co.uk/

Regional telephone numbers and online contact form: https://www.bgf.co.uk/contact/

UK Export Finance (UKEF) is the UK’s export credit agency. It is like a government bank or insurer specifically for exports. Its ambition is to make sure no viable export from the UK should fail for want of finance or insurance from the private sector.

UKEF helps firms of all sizes access the finance and insurance needed to realise their export ambitions through:

• free and independent guidance on sources of export finance

• the release of working capital with bank guarantees for contract bonds or credit facilities

• security of payment with export credit insurance

• competitive finance for overseas buyers with buyer credit guarantees or direct loans

The amounts and terms of support available depend on the risk involved. UKEF works with exporters, project sponsors, banks and buyers.

Website: https://www.gov.uk/government/organisations/uk-export-finance

Find an Export Finance Manager website: https://www.gov.uk/government/publications/find-an-export-finance-manager

Overseas Investment Insurance guide: https://www.gov.uk/guidance/overseas-investment-insurance

E-mail: [email protected] 

General Tel: +44 (0)20 7271 8010

Innovate UK is the UK’s innovation agency and works with companies and partner organisations to find and drive the science and technology innovations that will grow the UK economy.

They do this by offering loans, grants, competitions, and access to academic resources and support via Knowledge Transfer Partnerships, Innovate UK Business Connect, and Catapult Centres.

They have also produced the good application guide to help you prepare your best funding application.

Website: https://www.ukri.org/councils/innovate-uk/

Funding website: https://apply-for-innovation-funding.service.gov.uk/competition/search

Tel: 0300 321 4357

E-mail: [email protected]

The data analytics innovation vouchers are provided by the Business and Local Government Data Research Centre. This grant-funded scheme enables organisations to work with international data analytics researchers in order to address the key challenges faced.

In addition to grant-funded research projects, the Centre also provides funded data analytics training, workshops, networking events and webinars. To keep up to date on the latest opportunities please follow the Centre on their social media channels.

Eligibility: Micro, small or medium-sized businesses, local authorities and the wider public sector, charities or not-for-profit organisations.

Website: https://www.essex.ac.uk/centres-and-institutes/business-and-local-government-data/data-analytics-innovation-vouchers

Find out more via the website or contact the Outreach and Publicity Officer directly via email: [email protected] to arrange a consultation.

The Momentum Music Fund offers grants of £5k-£15k for artists/bands to break through to the next level of their careers. Activities eligible for support include recording, touring and marketing. The fund is open to applications from artists and bands in the UK that are at a crucial point in their development, with the potential to significantly further their career within the next two years. Applications can be submitted by the artists themselves or those who are working on their behalf, e.g. a manager, an independent label or publisher.

Funding can be used for:

- Recording – new album, EP, single, producer, engineer, mixer fees, studio hire, session musician fees, etc.

- Touring (UK only) – travel, accommodation, musician fees, set/production design, tour management, equipment hire, etc.

- Marketing and promotions – online PR, radio plugger, digital marketing, music videos, merchandise production, etc.

Closing date: There are 4 application rounds per year, closing at 6pm on the dates listed here 

Website: https://prsfoundation.com/funding-support/funding-music-creators/next-steps/ppl-momentum-music-fund/

E-mail: [email protected]

Are you looking to access finance for your business? You may want to consider Crowdfunding.

Crowdfunding is a method of getting finance by sourcing small amounts from a large number of people, rather than getting large amounts from one or a few. Its platforms host fundraisers’ pitches and allows the transfer of money directly from the funders to the fundraiser. 

Some level of vetting is usually made before allowing pitches on the platforms, and fees are charged to either the fundraiser, funder, or to both.

Not all crowdfunders are regulated by the FCA. Some are regulated by their association codes of conduct. There is an element of risk involved in dealing with any organisation that is not regulated by the FCA to offer finance products. To find out more go to https://www.fca.org.uk/consumers/crowdfunding

There are several types of crowdfunding platforms that you can consider, which usually depend on the stage and the sector of your business. Take a look at the British Business Bank information on equity crowdfunding: https://www.british-business-bank.co.uk/finance-hub/equity-crowdfunding/, and peer-to-peer lending: https://www.british-business-bank.co.uk/finance-hub/peer-to-peer-lending/ for the pros and cons of using these platforms.