- start-up loans Up to £25,000 is now available for startups that have traded for up to 3 years, up from 2 years
- New “Second Loans” are available for companies that have been traded for up to 5 years
- Loans to provide much-needed support to UK innovators and entrepreneurs
Business Secretary Jacob Rees-Mogg announced today (Sunday 25 September) that a £884m loan scheme for new businesses will be significantly expanded, providing much-needed funding to the UK’s innovative start-up group.
Start Up Loans has provided more than 95,000 loans to start-ups across the UK since its inception in June 2012, and supports an average of just over £9,000.
With 33,000 new loans available, the program’s eligibility will be expanded to support businesses for up to 3 years, up from 2 years. Companies can apply immediately under the new criteria.
Startup loans offer a fixed interest rate of 6%, as well as guidance, support and financing for aspiring business owners across the UK, providing support for those who might find it difficult to get loans from traditional lenders.
Besides, the new second loan will be available to companies operating for up to 5 years, providing eligible companies aged 3 to 5 years much needed government-backed financing to support their expansion at a critical juncture.
Business Secretary Jacob Rees-Mogg said:
This government is relentlessly focused on driving growth to create better jobs, raise wages, and fund our vital public services like the NHS.
Encouraging entrepreneurship and new companies to thrive is critical to developing the economy and raising living standards.
From a hair salon in Wales, to a furniture company in Northern Ireland and a cake seller in the Lake District, the expansion of the startup loan scheme will support these small businesses through this challenging period and put them in a position to grow – creating jobs and opportunities around the world. United kingdom.
The scheme supported businesses across the UK, providing over £54 million to businesses in Scotland, £42 million in Wales and over £12 million in Northern Ireland.
The expansion of the start-up loan scheme comes on the heels of the 2021/22 spending review, in which the government committed 33,000 loans to the program over the next three years.
The extension provides more government support for companies grappling with cost pressures and adds to measures the chancellor announced earlier this week, including offering Energy bills relief plan To help support them with energy costs, reform the rules for working outside the payroll and simplify the alcohol duty system.
It also builds on key measures announced by the government for small businesses in particular, including an extension of £4.5 billion loan recovery plan and deliver Helping to develop blueprintswhich provides guidance and free software to thousands of businesses across the UK.
Michel ovens Egyptian Central Bankfounder of Small Business Britain, said:
Expanding funding opportunities for start-ups and growing companies is sure to be welcomed by small businesses as a positive step to unleash their potential. Access to finance is vital to the growth of entrepreneurs, and with rising costs and challenges across the board, they need all the help they can get now to realize their ambitions.
Richard Berman, Managing Director of UK Business Bank, Start Up Loans said:
We are pleased to be able to expand the scope of our Startup Loan Program to help support businesses that need additional support during a period of ongoing economic turmoil.
This extension of the program will enable us to work with those companies that may have just started when the pandemic hit, or are ready to expand now that they are back on their feet. We want to make sure that these companies are not left behind.