What is The Start Up Loans Program?

Back in 2012, the Government, along with the Start-Up Loans Company introduced a new initiative called The Start-Up Loans program.
The plan was to encourage entrepreneurship in the UK and provide easier access to financing for new businesses.
Today, this government-backed personal loan offers financing of up to £25,000 along with a repayment plan at a fixed interest rate of 6% per annum and up to five years.

But it isn’t just financing that the Start-Up Loans program covers. It could also provide new businesses with 12 months of free business mentoring via its network of Delivery Partners, plus, free Open University business learning courses, offered to its successful applicants.

In this guide, we’ll explain how the Start-Up Loans Program works, what are the eligibility requirements for new UK businesses, what is needed for your application process, and how to appeal if your application is rejected.

How does the Start-Up Loans Program work?

Basically, this government-backed scheme operates as an unsecured personal loan. So there’s no need to include any assets or guarantors with your application.
The program is available to individuals looking to start or grow their business in the UK.

New business owners can individually apply for funding from £500 to £25,000, with a maximum of £100,000 per business.
Repayments of this Start-Up Loan are spread across 1-5 years with a 6% annual fixed interest fee.

What are the eligibility criteria?

• you must be over 18.
• you are a UK resident and have the right to work in the UK.
• your business is based in the UK.
• your business hasn’t been trading for more than 2 years.
• you’re unable to secure finance from other sources.
• you have passed a credit check and are able to repay the loan.

your business activity cannot be related to one of these categories:

• Weapons
• Chemical manufacture
• Pornography
• Drugs
• Illegal activities
• Banking & money transfer services.
• Private investigators
• Gambling and betting
• Property investment
• Charities
• Agents for third parties

The Start-Up Loans Program does not apply for:

• Debt repayment.
• Personal training and qualifications.
• Ad-hoc investment opportunities which are not part of your ongoing business activity.

How to apply for a Start-Up Loan?

You can use the online form to apply.

The registration process will include these stages:

• Eligibility check.
• Questions about your financing needs and how you intend to use the loan.
• A personal credit check.
• You will then be asked to submit a Business Plan, Cash Flow Forecast and Personal Survival Budget.
• Upon passing the credit check, you’ll be assigned with a Delivery Partner to support your application and review the documents that have been submitted.

How to appeal if your loan application has been declined?

You can submit an appeal 30 days after you have received an outcome email, by completing the online contact form.