Start Up Loans

Who can apply

You can apply for a Start Up Loan if:

• Business age: Trading for less than 3 years (36 months)
• Personal requirements: Aged 18 or over, UK resident
• Visa holders: Must be able to repay the full loan at least 6 months before visa expiry

You can apply for a second loan if you demonstrate good growth and reliable repayments on your first loan.

Excluded sectors

You cannot apply if your business operates in:

• Chemical manufacture or weaponry
• Gambling or adult entertainment
• Banking or money transfer services
• Property investment
• Charities
• FCA-regulated financial activities

Loan terms

How much you can borrow

• Minimum: £500
• Maximum: £25,000 per individual
• Multiple partners: Each partner can borrow up to £25,000 (business maximum £100,000)

Interest and repayment

• Interest rate: 6% fixed per annum (not variable)
• No setup or application fees
• Repayment period: 1 to 5 years (you choose based on affordability)
• Fixed monthly repayments

Important: Personal liability

This is a personal loan, not a business loan. You are personally liable for repayment even if you operate as a limited company. Default will:

• Appear on your personal credit report
• May result in county court judgment (CCJ)
• Affect your personal credit score for 6 years

What you can use the loan for

Permitted uses

• Equipment and machinery
• Stock and inventory
• Business premises (rent deposit, fit-out, lease payments)
• Marketing and promotional expenses
• Payroll and employees
• Working capital and operational costs

Prohibited uses

• Paying off existing debts or refinancing
• Training and education qualifications
• Investment in other businesses
• Property investment (buying to let)

The application process

What you need to apply

• Business plan: Demonstrating viability and market understanding
• Cash flow forecast: Showing you can cover monthly repayments
• Personal survival budget: Your monthly personal expenses breakdown

Don't worry if you haven't completed these yet - Business Support Partners can help you create or review them.

What assessors look for

• Evidence your business will generate sufficient cash flow for repayments
• Feasibility and sustainability of your business model
• Your personal credit history and financial reliability
• Viability of your market opportunity

Timeline

• Highly prepared applicants: 2-3 weeks
• Standard applicants: 2-3 months (depending on support needed)

Free mentoring support

Every successful applicant receives 15 hours of 1:1 mentoring over 12 months, included free with your loan.

What mentoring covers

• Strategic guidance on business decisions
• Support building and refining business strategies
• Access to mentor's knowledge and professional networks
• Confidence and motivation building
• Unbiased assessment of current strategies

Additional support

• Help writing and reviewing business plans and forecasts
• Access to exclusive business offers from Corporate Partners
• Range of templates and how-to guides

Research shows: Businesses that engage with mentoring have significantly higher survival rates.

Success rates and impact

Programme statistics

• Total loans since 2012: Over 118,000
• Total funding provided: Over £1.1 billion
• 2024: 10,432 loans issued

Economic impact

• 5-year survival rate: 69% for Start Up Loan recipients vs 43% for comparable businesses - a 60% improvement in survival odds
• Employment creation: On average, 1 additional employee job per loan
• Economic return: 5.7x - benefits are almost six times the programme's costs

Who receives funding

• Women: 40-41% of recipients (vs 20% of zero-employee businesses being women-led)
• Formerly unemployed: 31% were unemployed or economically inactive
• Ethnic minorities: 20% of recipients
• Young entrepreneurs: Over £100 million provided to 18-24 year-olds

Practical considerations

Credit impact

• Application triggers a personal credit check
• Regular repayments help build your credit score
• Missed payments significantly damage your credit rating

Multiple loans

You can apply for a second loan if:

• First loan is in good standing with reliable repayment history
• You can demonstrate business growth and sustainability

Alternatives to consider

Start Up Loans suit businesses that:

• Need relatively small amounts (under £25,000)
• Have limited trading history
• Value mentoring support
• Can demonstrate repayment affordability

For larger amounts or equity funding, consider SEIS (up to £250,000) or EIS (up to £5 million per year).