The government has widened eligibility for its Start Up Loans scheme to businesses trading for up to three years.
The loan scheme for new businesses has provided more than 95,000 loans to startups across the UK since its inception in June 2012, offering an average of just over £9,000 in support.
With 33,000 new loans available, the programme’s eligibility will be expanded to support businesses trading for up to three years, up from two years. Businesses can apply immediately under the new criteria.
Start Up Loans provide a fixed interest rate of 6%, as well as mentoring, support and funding to aspiring business owners across the UK, providing support to those who might find it difficult to secure loans from traditional lenders.
Alongside this, a new second loan will be available to businesses operating for up to five years.
The scheme has backed businesses across the United Kingdom, with more than £54 million provided to businesses in Scotland, £42m in Wales and over £12m in Northern Ireland.
“The expansion of funding opportunities for startups and growing businesses will certainly be welcomed by small firms as a positive move to unleash their potential,” said Michelle Ovens CBE, founder of Small Business Britain.
“Access to finance is vital for entrepreneurs to grow, and with rising costs and challenges across the board they need all the help they can get right now to realise their ambitions.”
British Business Bank’s MD of Start Up Loans, Richard Bearman, said: “We are delighted to be able to extend the reach of the Start Up Loans programme to help support businesses who need extra support during a time of continued economic unrest.
“This extension of the programme will enable us to work with those businesses that had perhaps just got going when the pandemic hit, or are ready to scale up now that they are back on their feet. We want to ensure that these businesses do not get left behind.”