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EnglishWhat Debt and Equity Finance Options Does British Business Bank Cover?
Updated
British Business Bank does not lend or invest directly to most businesses. Instead, it explains debt finance (borrowing you repay, usually with interest) and equity finance (investment in exchange for a share of ownership) and points you to providers through its Finance Finder. Use its guidance if you are a UK smaller business comparing finance options; the site's programme pages are where you check what is currently open for applications.
How the site splits the two routes
The Finance Finder area presents debt finance options and equity finance options as separate sections. The distinction is straightforward:
| Debt finance | Equity finance | |
|---|---|---|
| What you receive | A loan or other borrowing | Investment capital |
| What you give up | Repayment, usually with interest | A share of ownership in the business |
| Typical fit | Covering a cost or funding growth you expect to repay from cash flow | Funding growth when you can accept new shareholders |
The site does not publish a single comparison table of every product, so treat the two sections as starting points for research rather than a complete catalogue.
Using the Finance Finder to narrow options
The site describes a three-step path:
- Explore finance options — answer a few quick questions about your business to see potential finance options.
- Prepare for finance — work through guidance on what to do before approaching a lender or investor.
- Find partners — discover providers and partners who could support you in accessing finance.
The expected result of step 1 is a shortlist of option types worth investigating, not an offer. Step 2 matters most if you have never raised finance: preparation is where weak applications usually fail.
Programmes currently open for applications
The site lists these as open:
- Start Up Loans — low-interest personal loans and free mentoring for people starting or growing a new business. The site cites over 125,000 business ideas supported with more than £1.25 billion in loans.
- Growth Guarantee Scheme (GGS) — the successor to the Recovery Loan Scheme, designed to support access to finance for UK smaller businesses looking to invest and grow. It launched with accredited lenders on 1 July 2024.
- Community ENABLE Funding Programme — aimed at businesses struggling to secure finance, particularly those turned down by mainstream lenders. It works through Community Development Finance Institutions (CDFIs), which support diverse businesses and boost funding in underserved areas.
Note that GGS is delivered through accredited lenders, so the terms you are offered come from the lender, not the Bank. The site does not publish rates for GGS or Community ENABLE here.
What to check before you apply
- Eligibility first. Each programme page carries its own criteria; the summaries above are not a substitute.
- Debt versus equity fit. If you cannot service repayments from expected cash flow, equity may suit better — but it means sharing ownership.
- Preparation evidence. Have your business plan, financial forecasts and use-of-funds case ready before step 3.
- Provider route. For GGS, confirm the lender is accredited; for Community ENABLE, approach a CDFI.
The Bank's own framing is that it works with partners, offers guidance and supports a stronger finance market — so expect to deal with a lender, CDFI or investor rather than the Bank itself.