Eligibility of government start-up loan scheme widened to businesses trading for up to three years

The government has announced an expansion of its start-up loan scheme.

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 £9,000 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 six per cent, 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 three and five years old government-backed finance to support expansion.

Business Secretary Jacob Rees-Mogg said: “Encouraging entrepreneurship and new businesses to thrive is critical to growing the economy and raising living standards."

Michelle Ovens CBE, founder, 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.”

British Business Bank, Managing Director of Start Up Loans, Richard Bearman, said: “We are delighted to be able to extend the reach of the Start Up Loans programme to help support businesses who need extra support during a time of continued economic unrest.

“This extension of the programme will enable us to work with those businesses that had perhaps just got going when the pandemic hit, or are ready to scale up now that they are back on their feet. We want to ensure that these businesses do not get left behind.”