Government widens Start Up Loans criteria to include older businesses

Government widens Start Up Loans criteria to include older businesses
Dan Martin
Dan MartinDan Martin Content & Events

Posted: Mon 26th Sep 2022

UK businesses trading for up to three years can now access the government's funding scheme for start-ups and also apply for a new second loan as they grow.

Launched in 2012, the Start Up Loans scheme has provided around 95,000 loans of £500 to £25,000 to young businesses, with an average value of £9,000.

The funding have a fixed interest rate of 6% and also includes mentoring and support. They are targeted at founders who might find it difficult to secure finance from traditional lenders.

Until now, two years was the maximum age for businesses wanting to access the scheme but business secretary Jacob Rees-Mogg said firms trading for up to three years can now apply.

In addition, businesses trading for between three and five years can apply for a second loan.

The government says funding for 33,000 new loans has been allocated as announced by former chancellor Rishi in the October 2021 autumn Budget.

Jacob Rees-Mogg said:

"This government is relentlessly focused on driving growth to create better jobs, boost wages and fund our vital public services like the NHS.

"Encouraging entrepreneurship and new businesses to thrive is critical to growing the economy and raising living standards.

"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 expansion of Start Up Loans follows the announcement earlier this year of a new iteration of the Recovery Loan Scheme which was originally launched to support businesses during the coronavirus pandemic.

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Dan Martin
Dan MartinDan Martin Content & Events
I'm a freelance content creator and event host who helps small businesses and the organisations that support them. I'm also Enterprise Nation's Local Leader for Bristol. I have 20 years of experience as a small business journalist having interviewed hundreds of entrepreneurs from famous names like Sir Richard Branson and Deborah Meaden to the founders behind brand new start-ups. I've worked for a range of leading small business publications and support groups, most recently as head of content at Enterprise Nation where I was responsible for the prolific output of content on the company's blog and social media. I now freelance for Enterprise Nation as the website's news reporter and as the host of the Small Business sessions podcast. I'm based in Bristol where I run and host regular events with the local small business community in my role as Enterprise Nation's Local Leader for Bristol. I also have strong connections with other major business organisations in the south west region. In total, I've hosted over 100 events including conferences with an audience of hundreds for international brands like Xero and Facebook and live web chats from inside 10 Downing Street. With my partner, I co-run Lifestyle District, a lifestyle blog focused on culture, art, theatre and photography.

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