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Last update 02/08/2025

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2025 Grants & Government‑Backed Loans for Startups & Small Businesses in Scarborough, UK

Introduction

Scarborough is part of North Yorkshire Council, which offers several official grant schemes, government-backed loan programmes, and free business support services in 2025. This guide presents current funding options, eligibility criteria, application steps, and essential contact details.

Available Grants

🔹 Scarborough Business Development Grant Scheme

Purpose: Supports new and established SMEs in Scarborough, Whitby & Filey to expand through business start‑up or expansion.
Funding:
- Start‑Up Grant: Up to £1,000 (≤10 employees)
- Expansion Grant: Up to £5,000 (≤30 employees)
Eligibility: 50% match funding required; businesses must demonstrate growth plans, job creation, and alignment with council priorities ([turn0search0], [turn0search3])
Current Status: The Scheme is currently closed for new applications, but may reopen—check the North Yorkshire Council Business Grants page regularly.

🔹 North Yorkshire Council Small Business Capital Grants (UKSPF)

Purpose: Capital investment support to boost productivity via equipment, software, premises improvements or marketing.
Funding: £1,000 to £10,000, covering around 50% of eligible costs
Eligibility: Small and micro businesses in the Scarborough area, trading under 36 months with up to five employees ([turn0search1], [turn0search10])
Note: Some previous rounds have closed—sign up for council updates for the next funding windows.

🔹 Vibrant & Sustainable High Streets Fund (Phase Two)

Purpose: Revitalisation of town centres across York & North Yorkshire, including Scarborough, through cultural, marketing, and façade improvements.
Example: The “This is Scarborough” branding project received £35,810 funding in Phase One ([turn0search4], [turn0news21])
Eligibility: Special projects allied to town centre resilience across Scarborough
Status: Applications for Phase Two launched June 2025, closing 31 July 2025—check the Combined Authority site for details ([turn0search4]).

Government‑Backed Loans

🔹 Start‑Up Loans (British Business Bank)

Loan size: £500–£25,000 per founder; fixed ~6% APR; repayable over up to five years
Support: Includes 12 months of mentoring and business planning guidance
Eligibility: UK residents aged 18+, trading under 36 months with viable plans
Apply via: GOV.UK portal, with local support from York & North Yorkshire Growth Hub

Other Funding Programmes

🔹 Northern Powerhouse Investment Fund (NPIF)

Provides debt, equity and microfinance options to SMEs across the North of England, including Scarborough

Support & Advisory Services

🔹 York & North Yorkshire Growth Hub

Offers free resources: workshops, funding navigation, diagnostic tools, and mentor linkage ([turn0search6])

🔹 North Yorkshire Council – Business Grants & Economy

Central access point for UKSPF, capital grants, town centre schemes, and business support programmes ([turn0search1])

Eligibility & Application Guidance

Use the GOV.UK Business Finance Support Finder for national schemes
Confirm local eligibility via council grant pages based on trading period, staff count and project type
Required documents typically include:
- Business plan and forecasts
- Supplier quotes
- Bank statements
- Evidence of match funding
- Description of economic benefits (e.g. jobs, tourism, connectivity)

Application Process

Select the appropriate scheme for your business (start-up, capital grant, high street fund, loan)
Confirm your eligibility and funding availability
Collect all required documentation
Submit EoI or full application via the council or Growth Hub portal
If shortlisted, complete the full, detailed submission
On award, carry out the project or loan, and submit monitoring evidence as required

Additional Tips

Sign up for Growth Hub newsletters to access alerts about funding rounds and clinics
Attend free workshops to strengthen your application
Network via https://www.gmaxcard.com/business-networking for peer support and mentoring

Contact & Further Information

North Yorkshire Council – Business Grants & Support:
https://www.northyorks.gov.uk/business-and-economy/business-grants ([turn0search1])
York & North Yorkshire Growth Hub:
https://ynygrowthhub.com/business-support-programmes/ ([turn0search6])
GOV.UK Business Finance Support Finder:
https://www.gov.uk/business-finance-support

FAQs

🔹 What grants are currently available in Scarborough?
The town offers the Scarborough Business Development Scheme (currently closed), and periodic capital grants via North Yorkshire Council. The High Streets Fund Phase Two is open through 31 July 2025.

🔹 Can rural and tourism‑related businesses apply?
Yes—capital grants and High Streets Fund support schemes cover businesses across Scarborough and beyond, especially those with tourism or cultural impacts.

🔹 Is Start‑Up Loan funding still accessible?
Yes—for eligible entrepreneurs (18+, under 36 months trading) with mentoring (startupl.uk).

🔹 Is a combination of a grant and a loan acceptable?
Yes—businesses can use grant funding alongside loan financing, if eligible and not overlapping for the same project costs.

🔹 Where can I find help with grant applications?
Reach out to York & North Yorkshire Growth Hub or contact North Yorkshire Council Business Support, both of which provide free advice.

Value AD

2025

100% FREE

BUSINESS TOOl

What is Value Ad?

Value Ad is an innovative policy designed to foster a mutually beneficial relationship between two key groups: new businesses and service providers. This policy helps startups save significantly on essential services while enabling service providers to gain valuable traction and growth opportunities.

How is it a Win-Win Deal?

For New Businesses:

Cost Savings: Startups can save 50% to 80% on essential services such as website development and marketing. This means they don’t need to invest heavily upfront, making it easier to launch and grow their business.

Alternative Investment: The money saved through these discounts can be reinvested into other critical areas of the business, acting as an alternative investment that fuels further growth and development.

For Service Providers:

Initial Customer Base: Service providers, often tech startups themselves, can attract a significant number of initial customers by offering their services at a discounted rate. This helps them build traction and demonstrate value, which is crucial for attracting venture capital (VC) funding and other opportunities.

Marketing Efficiency: By providing affordable services, service providers do not need to spend heavily on marketing to acquire new customers. The discounted services themselves become a powerful marketing tool, bringing in customers who can spread the word and enhance the provider’s reputation.

Growth and Expansion: Attracting more customers through Value Ad helps service providers expand their client base and build long-term relationships, which can lead to increased revenue and business growth.

Alternative Investment for New Businesses:

For new businesses, the significant cost savings achieved through the Value Ad policy effectively serve as an alternative investment. Instead of spending large amounts on website development and marketing, they can leverage the affordable services provided by service providers. The saved funds can be redirected into other strategic areas of the business, enhancing overall growth and sustainability.

Benefits for Service Providers:

Service providers benefit from the Value Ad policy by gaining access to a ready pool of new customers who are drawn by the discounted rates. This initial customer base is crucial for:

Building Traction: Demonstrating product or service viability to potential investors.

Securing Funding: Enhanced customer traction and a growing user base can make the service provider more attractive to venture capitalists and other funding sources.

Market Penetration: Establishing a presence in the market quickly and efficiently without heavy marketing expenditures.

In Summary:

Value Ad is a strategic policy designed to create a win-win scenario for both new businesses and service providers. By offering significant discounts on essential services, startups can save and reinvest those savings, while service providers gain crucial initial customers and market traction. This mutually beneficial arrangement supports the growth and success of both groups, making Value Ad a powerful tool for business development and investment.

FREE BUSINESS TOOLS