Start Up Loans For UK Businesses

14th February 2024

What does this involve?
Apply for a government-backed Start Up Loan of £500 to £25,000 to start or grow your business. Unlike a business loan, this is an unsecured personal loan. You'll get free support and guidance to help write your business plan, and successful applicants get up to 12 months of free mentoring.

A Start Up Loan is a government-backed personal loan available to individuals looking to start or grow a business in the UK.

In addition to finance, successful applicants receive 12 months of free mentoring and exclusive business offers to help them succeed.

The loan is unsecured, so there's no need to put forward any assets or guarantors to support an application. All owners or partners in a business can individually apply for up to £25,000 each, with a maximum of £100,000 available per business.

Am I eligible?
To apply for the loan all of the following must apply:

you live in the UK
you're 18 or over
you're starting a new business or have been fully trading for less than 24 months
you pass the credit checks and can afford to repay the loan
you’re unable to secure finance from other sources (self-declaration is acceptable)
your business is UK-based
you have the right to work in the UK
your business type and loan purpose is eligible under the terms of the scheme
Most business types are eligible to be funded with a Start Up Loan, however they are not able to support the following business types:

weapons
chemical manufacture
drugs
banking & money transfer service, and other FCA regulated activities
private investigators that do not hold the appropriate licence
gambling and betting activities
property investment
agents for third parties, where a third party earns the majority of the revenue or you would only be earning a commission (not to be confused with franchise businesses which are eligible to apply)
charities
What does this cost?
Start Up Loans are UK government-backed and charge a fixed interest rate of 6% per year.

You can repay the loan over a period of 1 to 5 years.

There’s no application fee and no early repayment fee.

Who is this for?
Individuals looking to start or grow a new business in the UK.

Important information
The Start Up Loans Company is a subsidiary of the British Business Bank. They deliver the UK Government’s Start Up Loans programme, which provides finance and support for businesses who struggle to access other forms of finance.

Next steps
Visit the Start Up Loans website to read more about and apply for a loan. Go to - www.startuploans.co.uk/