Funding for SMEs in Yorkshire and the North East: where to start and what you can get
You know there is grant and growth funding out there for northern businesses. You have heard other owners mention it, seen the odd headline about a regional fund, and had a vague sense that you are probably missing out on something. What you do not have is a clear answer to two simple questions: where do I start, and what would I actually qualify for?
This is one of the most common things owners across Yorkshire and the North East ask us, so here is a plain map of the landscape. Not a list of specific schemes (those open and close, and a grant that is live today may be gone by the time you read this), but the main routes, who tends to qualify, what funders want to see before they say yes, and the official places to go and check what is open right now.
The main routes, in plain terms
Funding is not one thing. It is several quite different things, and the right one depends on what you are trying to do and what stage you are at.
Grants and publicly funded business support
Grants are money you do not pay back, usually tied to something specific: creating jobs, capital investment, innovation, going greener. They are competitive, they come and go, and they almost always want match funding (you putting in your own money alongside theirs). Most publicly funded grant and support programmes in our region are now channelled through the combined authorities and their growth hubs, so those are the doors to knock on rather than trying to track individual pots yourself.
British Business Bank and regional growth funds
The British Business Bank is the government-owned bank that channels finance to smaller businesses through regional funds. For the North, the relevant one is the Northern Powerhouse Investment Fund II, which offers a range of debt and equity finance to businesses across Yorkshire, the Humber, Tees Valley and the wider North East. Loan sizes and terms vary, and the fund works through appointed regional fund managers rather than lending directly, so the amounts and criteria are worth checking at the point you apply. It is a genuinely useful route for businesses that are past the very early stage and want to grow.
Bank and asset-based lending
The ordinary commercial routes still matter: term loans, overdrafts, asset finance, invoice finance. Less glamorous than a grant, but often faster and better suited to a specific need like buying equipment or smoothing cash flow. The trick is matching the type of finance to the job, and not paying for flexibility you do not need.
Angel investment and venture capital
If you are building something with high growth potential and are willing to give up some equity, angel investors and VC are an option. This means selling a share of your business in exchange for capital and, often, expertise. It suits a minority of SMEs, not most, and it is a bigger decision than a loan because you are taking on partners, not just money. There are active angel and investor networks across the North, and the growth hubs can point you toward them.
Who qualifies, and what funders want to see
Eligibility varies by scheme, but the underlying questions a funder asks are remarkably consistent, whether it is a grant panel, the British Business Bank’s fund managers, or an angel:
Is this a real, viable business, or a hopeful idea? They want evidence, not optimism.
Do the numbers stack up? Clear, credible financials showing where the money goes and what it produces.
Can you show a return, or the outcome the funder cares about? For a grant that might be jobs created; for a lender, the ability to repay; for an investor, growth.
Is the business in decent financial order? Messy books and a vague plan are the fastest way to a no, whoever you are asking.
This is the part most owners underestimate. The money is rarely lost at the idea stage. It is lost in the application, because the numbers are not ready, the plan is not costed properly, or the founder cannot answer the obvious follow-up questions. Funders back businesses that look like they have their house in order.
Where to actually look: the official doors in our region
Because schemes change so often, the most useful thing is not a list of grants but a list of the right front doors. These are the official growth hubs and funding bodies for our region. Start with the one that covers your area, register with them, and they will point you to what is currently open.
Yorkshire and the Humber
West Yorkshire Business Growth Hub – Leeds, Bradford, Wakefield, Kirklees, Calderdale.
South Yorkshire Growth Hub – Sheffield, Rotherham, Barnsley, Doncaster.
York & North Yorkshire Growth Hub – York, Harrogate and across North Yorkshire.
Hull & East Yorkshire Growth Hub – Hull and the East Riding.
The North East
North East Growth Hub – Newcastle, Sunderland, Durham, Gateshead, North and South Tyneside, Northumberland.
Business Tees Valley – Middlesbrough, Stockton, Darlington, Hartlepool, Redcar & Cleveland.
National, but relevant across the region
British Business Bank – for the Northern Powerhouse Investment Fund II and other finance options.
GOV.UK business finance and support finder – a national search tool for current grants and schemes.
Where a Fractional FD fits
Here is the honest part. Finding the funding is rarely the hard bit. Getting funded is. The businesses that succeed are the ones that turn up with credible numbers, a properly costed plan, and answers to the questions a funder will ask, and that is exactly the work a Part-time FD does.
Someone senior who can build the financial case, model the numbers a funder or investor will scrutinise, and prepare the application so it stands up, without the cost of a full-time hire. It is the difference between a strong submission and a hopeful one.
If raising investment specifically is on your mind, what investors actually look for in a UK SME goes deeper on that, and you can see how the ongoing support works on our Fractional FD service page.
[insert client metric or testimonial: e.g. a regional business we helped secure £X of growth funding, or a founder’s comment on getting their numbers investor-ready]
We work with owner-founders across Yorkshire and the North East who know the funding is out there and want to give themselves the best possible chance of getting it. If that is you, the numbers are where it is won or lost.