Key points
  • The British Business Bank allocated £500 million of ENABLE Guarantee capacity specifically to IP-rich SMEs, announced in July 2026.
  • The allocation targets businesses whose main assets are intellectual property, such as creative-industry and life-sciences firms, who have historically found finance harder to secure.
  • It was announced as part of the same July 2026 finance package that expanded the Growth Guarantee Scheme by £6.5bn.

As part of the same July 2026 finance package that expanded the Growth Guarantee Scheme, the British Business Bank has allocated £500 million of capacity within its ENABLE Guarantee programme specifically to unlock lending for IP-rich SMEs.

Why IP-rich businesses have historically struggled to get finance

IP-rich businesses — those whose main assets are intellectual property such as patents, trademarks, creative works or proprietary research rather than physical property or equipment — have historically found it harder to secure conventional finance. Lenders find IP harder to value as security than a building or machinery, since its worth depends heavily on market conditions, legal protection and commercial execution rather than a straightforward resale value. The £500 million ENABLE Guarantee allocation is designed specifically to address that gap.

How the ENABLE Guarantee scheme works

Like the Growth Guarantee Scheme, ENABLE Guarantee works by having the British Business Bank guarantee a portion of lending, reducing the risk to participating lenders and making it commercially viable for them to extend finance to businesses they might otherwise decline. The £500 million allocation sits within the broader ENABLE Guarantee programme but is specifically earmarked for IP-rich SMEs and scale-ups, including creative-industry and life-sciences firms as named examples.

Worth knowing This allocation was announced alongside, not instead of, the £6.5bn Growth Guarantee Scheme expansion and separate new support for exporters and community lenders — all part of the same July 2026 finance package. If you're an IP-rich business, it's worth checking both schemes rather than assuming only one applies to you.

What this means if your business's main asset is IP

The government frames the allocation as part of a wider strategy to strengthen the UK's innovation ecosystem and support the commercialisation of ideas. For a small business in the creative industries, life sciences, or any sector where your core value sits in intellectual property rather than physical assets, this is a signal that lenders backed by this guarantee capacity should be more willing to consider IP-backed applications than they may have been previously — though actual lending decisions and terms remain down to the accredited lender you approach.

When they succeed, we all succeed.

— Rachel Reeves, Chancellor of the Exchequer, via GOV.UK, July 2026

What isn't yet clear about how this plays out

GOV.UK's announcement confirms the £500 million allocation and its intended focus on IP-rich SMEs, but doesn't specify a fixed list of accredited lenders participating in this specific allocation, or a detailed valuation methodology for how IP assets will actually be assessed as security. Businesses interested in this route should confirm directly with the British Business Bank or an accredited lender which specific criteria apply, rather than assuming any IP-heavy balance sheet automatically qualifies.

Common questions

What is the ENABLE Guarantee scheme?

ENABLE Guarantee is a British Business Bank programme that guarantees a portion of lending to reduce risk for participating lenders, making it more commercially viable for them to extend finance to smaller businesses.

How much funding was allocated to IP-rich SMEs in 2026?

The British Business Bank allocated £500 million of ENABLE Guarantee capacity specifically to unlock lending for IP-rich SMEs and scale-ups, announced in July 2026.

What counts as an IP-rich business?

IP-rich businesses are those whose main assets are intellectual property — such as patents, trademarks or proprietary research — rather than physical property or equipment. Creative-industry and life-sciences firms are named examples.

Why do IP-rich businesses struggle to get conventional finance?

Lenders find intellectual property harder to value as loan security than physical assets like property or equipment, since its worth depends on market conditions and commercial execution rather than straightforward resale value.

In short

The British Business Bank allocated £500 million of ENABLE Guarantee capacity specifically for IP-rich SMEs in July 2026, part of the same finance package that expanded the Growth Guarantee Scheme. For creative-industry, life-sciences or other IP-heavy small businesses that have struggled to secure conventional finance, this allocation is designed to make lenders more willing to consider IP-backed applications, though individual lending decisions still rest with accredited lenders.

Based on reporting by GOV.UK, 4 Aug 2026.

Sources