Start Up Loan
The Start Up Loan scheme is a government-backed personal loan for individuals looking to start or grow a UK business. Loans range from £500 to £25,000 at a fixed interest rate of 6% per annum, repayable over one to five years. Applicants also receive free mentoring and support. The scheme is delivered by the British Business Bank through a network of delivery partners.
The Start Up Loan scheme is open to individuals aged 18 or over who want to start or grow a UK-based business that has been trading for up to 36 months. Each applicant can borrow up to £25,000 (the average loan is around £7,500), and multiple co-founders in the same business can each apply. There are no arrangement fees and the interest rate is fixed at 6% per annum. Repayment terms are one to five years. The loan is unsecured and does not require a personal guarantee, but applicants must submit a business plan and cash-flow forecast. Each successful borrower receives 12 months of free mentoring. The scheme is funded by the Government and delivered by the British Business Bank through delivery partners such as Virgin StartUp and the Prince's Trust.