Start Up Loans of up to £25,000 now available to start-ups that have been trading for up to three years, up from two years
- New ‘second loans’ available for businesses that have been trading for up to five years
- Loans to provide much-needed support for the UK’s innovators and entrepreneurs
An £884m loan scheme for new businesses is to be greatly expanded, delivering much needed finance to the UK’s array of innovative start-ups, the Business Secretary Jacob Rees-Mogg has announced today (Sunday 25 September).
The Start Up Loans programme has provided more than 95,000 loans to start-ups across the UK since its inception in June 2012, offering an average of just over £9000 in support.
With 33,000 new loans available, the programme’s eligibility will be expanded to support businesses trading for up to three years, up from two years. Businesses can apply immediately under the new criteria.
Start Up Loans provide a fixed interest rate of 6%, as well as mentoring, support and funding to aspiring business owners across the UK, providing support to those who might find it difficult to secure loans from traditional lenders.
Alongside this, a new second loan will be available to businesses operating for up to five years, providing eligible businesses between 3 and 5 years old a much-needed Government-backed finance to support their expansion at a crucial juncture.
Business Secretary Jacob Rees-Mogg said:
“This government is relentlessly focused on driving growth to create better jobs, boost wages and fund our vital public services like the NHS.
“Encouraging entrepreneurship and new businesses to thrive is critical to growing the economy and raising living standards.
“From a hair salon in Wales, to a furniture business in Northern Ireland and a cake seller in the Lake District, expanding the Start Up Loans Scheme will support these small businesses through this challenging period and position them to grow – creating jobs and opportunities across the UK.”