Start Up Loans of up to £25,000 now available to start-ups that have been trading for up to three years, up from two years, Business Secretary Jacob Rees-Mogg has announced on Sunday.
The government has widened eligibility of the £884m loan scheme for new businesses as 33,000 new loans are now available.
Businesses can apply immediately under the new criteria. The loans provide a fixed interest rate of 6 per cent, as well as mentoring, support and funding to aspiring business owners across the UK.
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 £9000 in support.
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 a much-needed government-backed finance to support their expansion at a crucial juncture.
“Encouraging entrepreneurship and new businesses to thrive is critical to growing the economy and raising living standards,” Rees-Mogg said.
“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.”
The scheme has backed businesses across the UK, with more than £54m provided to businesses in Scotland, £42m in Wales and over £12m in Northern Ireland.
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 three years.
“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,” Michelle Ovens, founder of Small Business Britain, said.
“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.”
