Start-up Loans for businesses 0-36 months

When you’re trying to start a business, finance can be the key to getting your idea off the ground.

That’s why the British Business Bank, through its partner the Start-up Loan company is funding loans of up to £25,000 – available to entrepreneurs, in addition to mentoring and advice, to ensure budding businesses get the best start in life. In the North East area, the Business Enterprise Fund is the designated provider. 

What is a Start-up Loan?

A Start-up Loan is a government-backed personal loan available to individuals looking to start or grow a business in the UK.

In addition to finance, successful applicants receive 12 months of free mentoring and exclusive business offers to help them succeed.

The loan is unsecured, so there’s no need to put forward any assets or guarantors to support an application.

All owners or partners in a business can individually apply for up to £25,000 each, with a maximum of £100,000 available per business.

• Borrow £500 – £25,000 (The average loan amount is £9,295)
• Fixed interest rate of 6% per annum
• Repay the loan over a term of 1–5 years
• Free application support
• Templates for writing business plans and cash flow forecasts
• 12 months of free mentoring once you receive a loan
• A range of useful templates and how-to guides
• No fees for arranging the loan or paying it back early
• Exclusive discounts on business products from O2, Experian, Intuit and 30+ more

It can be difficult to assess how much to borrow and when.  A tranched loan allows you to borrow part of the amount your finance provider has agreed to lend to you now, with the rest (if you need it) to follow at a later date.  You can find out more about tranched loans here.

Eligibility criteria

To be eligible to apply for a Start-up Loan, you must meet the following criteria. If you need more information, visit Frequently Asked Questions (FAQs).

• You’re 18 years of age or older
• You’re a current UK resident
• You’re starting a new business or have been trading for up to 36 months
• You’re unable to secure finance from other sources (self-declaration is ok)
• Your business is based in the UK
• You have the right to work in the UK
• Your type of business and reason for wanting the loan is eligible under the terms of the scheme
• You pass our credit checks and you can afford to repay the loan

Additional information 

Businesses that apply for a start-up loan in years 1-3 can apply for a second loan up until the business is 5 years old

• Max loan is £25k per business owner director, for example: 
  • applied for £10k start up within first 3 years of trading, another £15k is available and can be applied for up until the business is 5 years old
  • did not apply for a start up loan within first 3 years of trading, unable to apply for a start up loan after 3 year of trading

Visit The Start-up Loans website for further information which includes useful support and guidance for start ups.

Start-up Loans has also partnered with The Open University to create a range of free courses for entrepreneurs. Find out more about Learn with Start-up Loans here.