Over 3000 people have applied or registered an interest in a Start-Up loan; these budding entrepreneurs receive support and mentoring to develop their ideas. When the business plan is robust and approved, they will be able to access financial support in the form of a low interest loan typically in the order of £2,500 with a repayment period of up to five years.
In the three months that the scheme has been live over £1.5 million worth of loans have been approved, helping over 460 new businesses get off the ground. Around 100 new businesses a week are expected to reach approval stage in January, with thousands more in the months ahead.
Prime Minister David Cameron said:
“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, Chair of the Start-Up Loans Company said:
“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 said:
“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.”
As well as Start-Up loans, the Government is taking action on a number of fronts to help SMEs get the finance they need to grow. This includes:

The Funding for Lending scheme to encourage banks to boost lending in the UK economy;
The Enterprise Finance Guarantee – A loan guarantee programme which has helped more than 2,100 small firms obtain bank finance;
The Government has committed £200 million for investment into Enterprise Capital Funds between 2011 and 2015, and since May 2010 more than £90 million has been invested in over 70 companies through the programme.
The Seed Enterprise Investment Scheme (SEIS) which encourages investment in small and early stage companies www.seiswindow.org.uk and,
Up to £20 billion in new, cheaper finance for businesses through innovative Supply Chain Finance scheme.