Start Up Loans are personal loans designed to help new businesses begin trading. They were created to support would-be business owners who have struggled to secure finance from traditional lenders.
To date, over 100,000 small firms have received loans, designed to help scale up activities. Delivered through the state-owned British Business Bank, the Start Up Loan scheme was developed and launched by the government in 2012 to help new and early-stage UK businesses without sufficient personal funds or support from friends and family to access affordable finance and mentoring support.
Through this combined access to finance, more small businesses can develop and reach their potential, delivering economic growth and a boost to local communities.
Start Up Loans differ from small-business bank loans in that they are personal loans for business purposes. They are also unsecured, which means you don’t have to use your house or any other asset as security to receive the money.
Start Up Loans are provided by the Start Up Loans Company, which is funded by the UK Government. You can borrow between £500 and £25,000, payable over one to five years, at a fixed interest rate of 6% per annum.
When you apply, you’re paired with a dedicated business adviser, who supports you with completing your application form. If your application is successful, your loan comes with the option of 12 months of free mentoring.
To qualify for a Start Up Loan, you must meet the following criteria:
- You are aged 18 or over;
- You live in the UK;
- You are starting a new business, or your business is less than three years old;
- Your business is/will be based in the UK; and
- You have the right to work in the UK.
See: Start Up Loans - British Business Bank (british-business-bank.co.uk)