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.