Start Up and Growth Loans
The Start Up Loans programme is funded by the Department for Business, Energy and Industrial Strategy (BEIS) and is delivered by The Start Up Loans Company (SULCo), a subsidiary of the British Business Bank.
It aims to encourage entrepreneurship in the UK, increase the rate of business creation and improve survival prospects.
More specifically, the programme offers loans (from £500 to £25,000, at 6% interest) alongside free mentoring and support to individuals who are starting a new business or who have been trading for less than two years who are unable to secure finance from other sources.
Details of Start Up Loans
Start Up Loans can be taken out to start or grow your own business.
You can borrow from £500 up to £25,000 at a fixed interest rate of 6% per annum. The loan must be repaid over a period of one to five years.
The loans are unsecured so you do not need to put forward any assets or guarantors to support an application.
All owners or partners in a business can each individually apply for up to £25,000.
The loans are UK Government backed and you can also get 12 months of free mentoring as part of the loan package.
There are no application or set up fees.
The SULCo will provide free templates to assist you to apply for a loan and can help you create your Business Plan, Cash Flow Forecast and Personal Survival Budget to submit with your application.
What are the eligibility criteria?
To be eligible to apply for a Start Up Loan, you must fit the following criteria:
- You are 18 years of age or older
- You are a current UK resident
- You are starting a new business or have been trading for up to 24 months
- You are unable to secure finance from other sources (you can self-declare this)
- Your business is based in the UK
- You have the right to work in the UK
Your business type and loan purpose must be eligible under the terms of the scheme:
https://www.startuploans.co.uk/am-i-eligible/#businesstype
https://www.startuploans.co.uk/am-i-eligible/#loanpurpose
In addition you must pass the SULCo credit checks and be able to afford to repay the loan.
https://www.startuploans.co.uk/faqs-2/credit-checks/
https://www.startuploans.co.uk/personal-survival-budget-template/
What are the steps involved in applying for a Start Up Loan?
- Check your eligibility and then register
- Complete an application form
- Finalise your supporting business documents
https://www.startuploans.co.uk/how-to-apply/
https://www.startuploans.co.uk/what-is-a-start-up-loan/
https://apply.startuploans.co.uk/s/register
https://www.startuploans.co.uk/loan-repayment-calculator/
The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.
