£250 Million Access to Finance Initiative for SMEs and Start-ups

Carson McDowell was delighted to sponsor the Young Leaders NI Conference on 16^th May 2025, where several entrepreneurs provided their expert insight on starting a business in Northern Ireland. It was a fantastic opportunity to hear firsthand the stories behind some of our most interesting start-up businesses.

One of the repeating themes was how entrepreneurs source funding and financial support at the early stages of their development. Funding to prove or test a concept, or to make the initial investment in a business idea, can be a challenge to obtain, however, the renewed Access to Finance initiative, announced by NI Economy Minister Dr. Caoimhe Archibald on 14^th May 2025 and which will be delivered through Invest Northern Ireland, is an ambitious funding package for entrepreneurs and small and medium-sized enterprises (SMEs). It signals the government’s intent to build a stronger, more innovation-driven economy over the next decade.

SMEs are the backbone of Northern Ireland’s private sector, making up over 130,000 businesses and accounting for more than 75% of private employment. Despite this, access to early-state capital has historically been a challenge, with Northern Ireland receiving proportionally less venture capital investment than other parts of the UK. The initiative, by providing targeted financial support through debt and equity solutions, seeks to address critical gaps in the market and unlock the potential of the region’s most promising enterprises.

The Access to Finance Three Core Funds:

1. Techstart III (£55 Million) - equity investment for early-stage companies seeking to scale their innovations including a £7 million proof of concept grant fund offering up to £15,000 (concept grant) and £40,000 (concept grant plus) to those developing new products, services or intellectual property.

This fund will assist with removing financial barriers to research and development in tech-led entrepreneurship, allowing individuals to explore ideas that might otherwise remain dormant and help Northern Ireland to build an IP-rich economy capable of competing globally in growing sectors such as AI.

1. Co-Fund III (£39 Million) – will focus on scaling businesses with growth potential by co-investing alongside private investors and enabling businesses to raise larger investment rounds than they could secure on their own.

This fund may assist with attracting private capital by reducing investor risk and support job creation and market expansion by helping businesses to reach the scale needed to compete outside the region.

1. Small Business Loan Fund III (£6 Million) - offering loans ranging from £10,000 to £125,000, this fund will be used to address the critical gap for micro and small businesses that often struggle to obtain finance from traditional lenders.

Long-term Economic Benefits:

This funding could deliver significant, long-lasting benefits for Northern Ireland’s economy: -

• Job Creation and Retention: with multiple new businesses expected to benefit over the coming decade, the initiative is poised to create and safeguard a substantial number of jobs. This will result in the creation of skilled workers to support future business expansion within Northern Ireland.
• Increased innovation and export capacity: funds like Techstart III will support high-potential, innovation-led businesses, many of which are export-oriented.

• Strengthening Entrepreneurial ecosystems: the initiative will enhance the start-up and investment ecosystem by creating a more attractive environment for private investors, encourage them to partner with local businesses and contribute to the growth of a dynamic entrepreneurial community.
• Regional economic inclusion: by extending loans to businesses that might otherwise struggle to access funding, the initiative promotes inclusive growth. This could help rebalance development across rural and urban areas and support disadvantaged groups entering the business landscape.

The launch of the Access to Finance initiative represents an exciting step forward in addressing the challenges faced by SMEs in Northern Ireland. Working alongside traditional bank lending, the fund presents opportunities for SMEs to get the support they need, closing the gap between ambition and access to capital. It is hoped that this will empower businesses to grow and innovate, creating a more competitive SME sector that’s ready to take advantage of emerging opportunities and contribute to the region’s overall economic prosperity.

If you would like any further information or advice, please contact Kerrie Emerson from our Banking & Finance team.

*This information is for guidance purposes only and does not constitute, nor should it be regarded as, a substitute for taking legal advice that is tailored to your circumstances.