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.
See the full press release here.
