The Start Up Loans programme, part of the British Business Bank, aims to encourage entrepreneurship by providing the financial support required for those looking to set up their own business.
The scheme offers loans from £500 to £25,000, as well as free mentoring and support to individuals starting a new business or those who have been trading for less than two years.
- Fixed interest rate of 6% per annum;
- Repay over a term of 1-5 years;
- 12 months of free mentoring; and
To be eligible for a Start Up Loan, applicants must be
- Starting a new business or have been trading for up to 24 months;
- Unable to secure finance from other sources;
- Based in the UK; and
- Starting a type of business that is eligible under the scheme, click here for further details on this.
The loan cannot be used to fund
- Debt repayment;
- Training, qualifications or education programmes; or
- Investment opportunities that do not form part of an on-going sustainable business.
As at the end of October 2020, the Start Up Loans programme had lent over £649m to nearly 61,000 entrepreneurs.
How to apply
Applications for a Start Up Loan can be made through the British Business Bank.