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Start-Up Loans and Funding Made More Widely Available
The UK Government’s £884 million scheme to help innovative start-up businesses, has just been made more widely available. Delivered by the British Business Bank, the Start-Up Loans initiative has been modified with an enhancement to the eligibility criteria, casting the net open to more potential start-ups across the UK.
The scheme now includes start-ups that have been trading for up to three years and second loans are have also been made available to eligible businesses that have been trading for up to five years. The programme previously limited finance to start-ups which had been trading for up to two years.
Since its inception in 2012, 97,000 loans worth £900 million have been delivered to new business owners across the UK.
Start-up loans provide funding at a fixed interest rate of six per cent, as well as 12 months’ mentoring to its recipients, further supporting aspiring business owners. The impact of the scheme has been particularly noticeable among individuals who might find it difficult to secure loans from traditional lenders.
See: Start Up Loans – small businesses can borrow up to £25,000