Start Up Loans scheme sees eligibility expanded

The Business Secretary has announced the expansion the Start Up Loans programme, an £884 million scheme for new businesses to access finance.

Business Secretary Jacob Rees-Mogg has announced that the scheme will now be eligible for businesses trading for up to three years, with new ‘second loans’ available for those trading for up to five years. Since launching in 2012, 95,000 businesses have secured financing averaging just over £9,000 through the Start Up Loans scheme. The expansion of eligibility criteria is expected to make a further 33,000 loans available.

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. Businesses can apply immediately under the new eligibility criteria.

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.”

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.”