Eligibility for Start Up Loans scheme widened

Eligibility for the Start Up Loans scheme for new businesses is to be widened to help new businesses in obtaining early-stage finance.

Loans of up to £25,000 are now available to start-ups that have been trading for up to three years, up from the previous two years.

In addition, new ‘second loans’ are available for businesses that have been trading for up to five years.

The changes were announced over the weekend by the Business Secretary.

Start Up Loans began in 2012 and so far have provided more than 95,000 loans to start-ups across the UK, according to government figures.

With the scheme's eligibility expanded to support businesses trading for up to three years instead of two, more 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 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 Government-backed finance to support their expansion.

British Business Bank, Managing Director of Start Up Loans, Richard Bearman, said:

“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.”

Further information

Further information can be found on the British Business Bank website.

If you would like to discuss funding for your business, please contact a member of our Funding Advisory team.