The Business Secretary has widened eligibility of Start Up Loans scheme to businesses trading for up to 3 years.
An £884 million 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.
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 3 years, up from 2 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 5 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”.
Expanding the Start Up Loans Scheme will support many small businesses through this challenging period and position them to grow - creating jobs and opportunities across the UK.
Expansion of the Start Up Loans scheme follows the 2021/22 Spending Review, at which the government made the commitment to provide 33,000 loans to the programme over the next 3 years.
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”.
To apply for the Start Up Loans programme click the link below:
To find out what further support Business Doncaster can provide click the link below:
This article is more than a year old, please read this content keeping it's age in mind.Click here to view our latest news
Don't miss out on our latest news, updates and events - sign up here.