Start-up Loans Boosted by £30m
Prime Minister David Cameron has announced an increase in funding for the Start-Up Loans scheme by adding another £30 million to the fund.
The scheme, announced in May 2012, is now projected to distribute a total of £110 million to young entrepreneurs over the next 3 years (up to and including 2015)
The Start-Up Loans Scheme has also been extended to be more inclusive of a wider age range – Where previously the scheme was open to 18-24 year old budding entrepreneurs, the ceiling has been raised so that those in the 18-30 bracket are now open to apply for startup funding.
Funding is expected to encourage more people to apply to initiate their own startup businesses.
So far, since the first loans went to young businesses in September, more than 3,000 entrepreneurs have either applied or registered an interest in a startup loan and £1.5 million worth of funding has been released.
In the 3 months since the projects launch some 460 new businesses have benefited from a Start-up loan.
This January the expectation is that 100 businesses a week will take advantage of the scheme and get to the approval stage.
StartUp Loan Kit
As well as receiving a business loan with a fixed APR of 3% over 3-5 years plus the Retail Price Index (RPI) figure, which currently stands at 3.5%, successful startups will get the StartUp Loan kit.
The StartUp Loan kit, produced by Emma Jones’ Enterprise Nation team, includes a number of benefits for startups including deals on suits and business insurance plus money saving discounts on virtual office space, accounts packages and laptop computers.
Included in the StartUp Loan kit is an ebook offering business advice for new businesses.
Prime Minister David Cameron said of the latest round of funding:
“Start-Up loans are an important part of my mission to back aspiration, and all those young people who want to work hard and get on in life, so this country competes and thrives in the global race.”
“They are a great way to help this next generation of entrepreneurs get the financial help – and the confidence – to turn that spark of an idea, into a growing, thriving business.”
“It is by backing our entrepreneurs and championing small business that we can drive forward and grow the economy, and equip this country for the highly competitive era we are in.”
James Caan, the entrepreneur and former Dragons’ Den investor, is the head of the StartUp Loans Company and he had this to say:
“There has been a major shift in the way business is viewed by the public, and entrepreneurs are now seen as creative and exciting role models; and I am delighted to see that more and more young people are now looking to set up their own business.”
“It is only with this renewed focus on youth entrepreneurship, that we will create more jobs and wealth and see the economy flourish once again.”
“Start-Up Loans enable young people to harness their skills, and gives each budding entrepreneur not just a low interest loan, but also the help and support from an experienced mentor to guide them to success. I am proud to chair the Start-Up Loans Company, responsible for delivering this excellent initiative.”
Business Minister Michael Fallon also commented on the StartUp Loans scheme, adding:
“The Government is determined to back young people who aspire to get on in business and create jobs. The Start-Up Loan scheme has been very popular and the extra investment will help to meet the demand for this kind of assistance.”
“Making this support available to a wider age group will encourage even more young people to be entrepreneurial. It gives them access to experienced mentors who can offer knowledge and expertise about how to run a successful enterprise. I hope to see a whole new wave of entrepreneurs get their ideas off the ground.”
Wannabe entrepreneurs with a sound business plan can apply to the scheme at the Start-up Loans website.