2025 Grants and Loans for Small Businesses in Redcar and Cleveland, UK

Introduction

This guide is tailored for startups, micro and small businesses in Redcar and Cleveland, highlighting active grant schemes, government-backed loans, and local support available in 2025. All links are validated and direct you to current official information.

Available Grants

🔹 Redcar Town Centre Grant Scheme (Town Deal Fund)

• Purpose: Attract and support new businesses or improvements to existing premises in Redcar Town Centre.

• Offers four grant categories:

  • Bring Your Business To: Up to £15,000 for fit-out of new premises

  • Better Businesses: Up to £5,000 to improve existing retail premises

  • Above Shops: Up to £10,000 to bring upper floors back into use

  • Welcome To: Up to £30,000 to support accommodation units enhancing the visitor economy

• Eligibility: Match‑funded (100% upfront spend), one grant per property, viability proof required

• Deadline: Applications accepted until 17 March 2025 (grant panel meets December 2024) (redcar-cleveland.gov.uk)

• How to apply: Contact the Redcar Town Deal team or visit the council news page for guidance
  [Grant Fund for New and Existing Redcar Businesses - official announcement](redcar-cleveland.gov.uk)

🔹 Guisborough Commercial & High Street Support Grants

• Focus: Town‑centre businesses in Guisborough, eligible for commercial façade improvements, heritage-aligned works

• Grant size: Typically up to £10,000, dependent on project scope

• How to engage: Register interest via the Expression of Interest page on the Town Deal site
  [Guisborough Commercial Grant Scheme details & EOI](redcarcleveland.uk.engagementhq.com, Redcar | Cleveland)

🔹 ‘Routes to Employment’ Start‑Up Grant Scheme

• Purpose: Support unemployed residents or those facing redundancy to set up businesses

• Grant size: Small capital grant (typically £100–£1,000) to assist launch costs

• Eligibility: Redcar & Cleveland residents, businesses trading under 12 months

• Details: Listed under Start-Up Grants section on Council Business site (Redcar | Cleveland)

🔹 Rural England Prosperity Fund (through Tees Valley Combined Authority)

• Purpose: Micro and small business capital support across rural areas (including Redcar borough villages)

• Funding: Up to approx £625,000 across projects, grants typically cover up to 50% of project costs

• Eligibility: Businesses in areas with populations under 30,000; local economic benefit required

• How to apply: Check the Tees Valley CA UKREPF news for application links (Tees Valley)

Government‑Backed Loans

🔹 Start Up Loans (British Business Bank)

• Loan range: £500–£25,000, fixed 6% APR

• Includes free mentoring for 12 months and business training

• Eligibility: UK residents aged 18+, early-stage or pre‑start enterprises

• Apply via GOV.UK:
  https://www.gov.uk/apply-start-up-loan

🔹 Northern Powerhouse Investment Fund (NPIF) – Debt Finance

• Offers debt, equity, and microfinance between £25,000 and £100,000

• Eligibility: SMEs based in the Northern Powerhouse region, including Redcar & Cleveland

• Access via accredited NPIF lenders (search via British Business Bank NPIF page)

🔹 UKSE Tees Valley Business Loans

• Loan size: Up to £5,000 at 6.8% APR for pre-start or early-stage SMEs

• Administered by UKSE, part of the local regeneration support for new businesses

Local Business Support

🔹 Redcar & Cleveland Borough Council – Business & Funding Hub

• Signposts available grant and loan options, application packs, and support contacts

• Includes contact for Business Growth and Place Investment Teams
  [Grants & Funding Information Hub – RCC Council](Startup Grants UK, Redcar | Cleveland)

🔹 Business Growth Team / Place Investment Team

• Offer coaching, help with completing applications, and assessing project viability

• Contact via business@redcar-cleveland.gov.uk or phone 01642 444366

Eligibility Guidance

• Town Deal Grants: Restricted to a defined town centre area; require upfront spend and commercial viability

• Routes to Employment: For residents starting their first business within 12 months

• Rural ENPF: For rural enterprises in small communities; check area classification

• Start Up Loans and NPIF: Governed by national rules; accessible UK-wide

Application Process

1. Identify relevant scheme(s) (e.g. Town Deal Grant, Guisborough Grant, Start Up Loan)

2. Prepare documentation: project plan, quotes, match funding proof, bank details, business viability info

3. Contact the Business Growth / Place Investment Team to confirm fit and receive application materials

4. Submit application by deadline (e.g. Town Deal by March 2025)

5. Await panel or loan provider decision (grants typically within 6 weeks, loans ~4 weeks) (Redcar | Cleveland, redcar-cleveland.gov.uk, Startup Grants UK)

6. If successful, complete works, submit proof of completion, invoices, photos for reimbursement; loans follow lending terms

Additional Tips

• Apply early—grant rounds such as the Town Centre Scheme may close once funding is allocated.

• Use mentoring support via the Business Growth Team or the Growth Hub to strengthen your application.

• Keep clear records: signed quotes, invoices, payment proofs, before/after photos.

• For rural grants, confirm your location falls within the eligible population thresholds via DEFRA Magic Map.

Contact Information & Support

• Business Growth & Investment Team, Redcar & Cleveland Borough Council
  Phone: 01642 444366 | Email: business@redcar-cleveland.gov.uk (Redcar | Cleveland, redcar-cleveland.gov.uk, Tees Valley, Redcar | Cleveland)

• Tees Valley Combined Authority – UKREPF (Rural Prosperity Fund)
  Via Tees Valley CA website for eligibility and applications (Tees Valley)

• British Business Bank NPIF & Start Up Loans Scheme
  Access via GOV.UK and BB Bank official finance listings

FAQs – Grants & Loans in Redcar & Cleveland (2025)

🔹
Can I apply for a Town Deal grant if I run an online-only business?
Town Deal grants focus on premises-based improvements in town centre areas. Digital businesses may be eligible under the Rural ENPF or national loan schemes.

🔹
How much grant funding can I get?

• Up to £15,000 for fit-out under "Bring Your Business To"

• Up to £30,000 for tourism-related accommodation ("Welcome To")

• Smaller grants (£5k–£10k) for improvements or upper-floor reuse

• Routes to Employment offers small startup grants (~£1,000)

🔹
Can I combine schemes?
Yes—if eligibility allows. Many businesses use a combination of Town Deal grant, rural funding, and a Start Up Loan.

🔹
Do I need a business plan?
Yes, for all grant and loan applications. Provide cash flow forecasts and project justification.

🔹
How long does the application process take?
Grants: typically up to 6 weeks. Loans: around 4 weeks via Start Up Loans or NPIF providers.

🔹
Are there any application fees?
No fees for council-administered grants or Start Up Loans. NPIF and commercial lenders may apply fees or interest.

🔹
Can I use funding for marketing or digital presence?
Yes—if included in the scope of eligible improvements (e.g. Part of business fit-out or productivity enhancements).

🔹
Is my business required to be high-growth or innovative?
Not necessarily. The focus is on viability, local impact, and alignment with regeneration objectives rather than sector-specific growth.