Government Expands Start Up Loans for New Businesses
Enhanced support is now available through Government backed loans for innovators and entrepreneurs starting out in business.
The Government has announced enhancements to the eligibility criteria of the Start Up Loans initiative. The £884 million scheme is designed to help innovative new businesses starting up across the UK.
Start Up Loans provide a fixed interest rate of 6%, as well as mentoring, support and funding to aspiring business owners, providing support to those who might find it difficult to secure loans from traditional lenders. The average loan is around £7,200, although loans of up to £25,000 are available.
With 33,000 new loans available, the programme’s eligibility is being expanded to support businesses that have been trading for up to three years. Previously the scheme supported firms trading up to two years. Businesses can apply immediately under the new criteria.
Alongside this, a new second loan will be available to businesses operating for up to five years, providing eligible firms between three and five years with Government-backed finance to support their expansion.
Michelle Ovens CBE, founder of Small Business Britain, said:
‘The expansion of funding opportunities for start-ups and growing businesses will certainly be welcomed by small firms as a positive move to unleash their potential.
‘Access to finance is vital for entrepreneurs to grow, and with rising costs and challenges across the board they need all the help they can get right now to realise their ambitions.’
This is an ongoing programme. Applications may be submitted at any time.
(This report was the subject of a GRANTfinder Newsflash.)