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Public Sector Loans

Public sector loans are ways of financing a small business provided by government organisations or agencies that can support you with specific business projects, initiatives or activities. 

Unlike public sector grants, public sector loans must be repaid over a set time period with interest, and this interest is typically at a lower rate than loans from private lenders.

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Your Public Sector loan options


Smaller Loans II

Business loans from the Northern Powerhouse Investment Fund (NPIF), to help you start-up


Start-up Loans


Personal loans designed to help new businesses start trading, from £500 to £25,000


Innovate UK Innovation Loans


Innovate UK is the UK’s national innovation agency that supports business-led innovation in all sectors, technologies and regions.

GM Business Investment Fund

The Greater Manchester Business Investment Fund is a scheme for local businesses to access investment and financial assistance to promote growth and create jobs.

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Frequently Asked Questions:

Lenders adopt a variety of ways to analyse a lending proposal and assess a borrowing applicant. However, a core of the following may form the basis of many lenders' criteria for getting a loan:

Customer Profile

  • Track record 
  • Credibility 
  • Business acumen


  • Sector
  • Product and Services
  • Traction

Management Profile 

  • Experience in the sector
  • Credibility
  • Strength of collective and of individuals

Lending Proposition

  • Well-articulated
  • Credible
  • Within the lender's credit policy

Financial Information

  • Historical
  • MI
  • Forecasts 
  • Confirming financial track record and strength as well as indicating likely serviceability of projected loan repayments. 

Availability of Collateral Security (if applicable)

Affordability Criteria

  • Record of consistent financial performance or projection led?
  • Ratio of Ebitda vs projected loan repayments
  • Gearing (reliance on outside debt) Other Lending Relationships Remuneration
  • Fees
  • Pricing reflecting the level of risk and achieving the lenders pricing policy guidelines

S.W.O.T. Analysis

  • General assessment to analyse the application overall

Applying for finance and taking on business debt should not be undertaken lightly.

Assuming you have applied for credit through a reputable and regulated lender, by signing a debt agreement, you are entering into a contract with the lender that is enforceable by law should you be in breach of the terms and conditions of the agreement.

You should therefore exercise extreme care when presented with an offer of funding by a lender. If you are in any doubt about the implications of signing what is a legally enforceable agreement, you should immediately seek legal advice prior to signing such an agreement.

The lender will need to know the purpose of the loan to confirm that it’s legal or allowed by the particular fund requirements. The lender may ask for proof that the funds have been used for the confirmed purpose.

The risks of debt financing are that the business could fail to maintain the loan repayments and not repay the business loan.

The benefits of debt financing, however, are that the business can expand and grow faster with the injection of cash into the business.

The lender will monitor the business at least annually to ensure the repayment of the loan is maintained without difficulty and should be available to discuss any issues at any time. It is advisable that the business should speak to the lender at the earliest opportunity if loan repayments will become a problem.

This is information, not financial advice or recommendations

The content and materials featured or linked to are for your information and education only and are not intended to address your personal or business requirements. 

The information does not constitute financial advice or recommendation and should not be considered as such.

Simplifi is not regulated by the Financial Conduct Authority (FCA), its authors are not financial advisors, and it is therefore not authorised to offer financial advice. 

Do your own research and seek independent advice when required 

Always do your own research and seek independent financial advice when required. Any arrangement made between you and any third party named or linked to or from the site is at your sole risk and responsibility.

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