First wave of business start-up loans approved

The government backed Start-Up Loans Company has begun distributing funds aimed at supporting young entrepreneurs looking to start out in business.
Launched amid great publicity earlier in the year, the Start Up Loans Company’s scheme has a £10m pilot fund available to help people aged 18-24 turn their business ideas into a reality. Individual loans of up to £2,500 are on offer to young entrepreneurs who can demonstrate a clear and well thought out business plan. Over 2,000 applications have been submitted by budding entrepreneurs across the county and the first of these loans have already been approved and distributed.

As well as initial financial support the scheme aims to offer mentoring and business advice from established entrepreneurs who have successfully started their own business and faced the same challenges the young entrepreneurs are likely to come up against themselves.

Depending on the success of the £10m pilot fund, a further £32.5m will be made available during the financial year 2013/2014 and following that an additional £40m during 2014/2015.

At an event in London earlier this month, held to celebrate the distribution of the first start-up loans under the initiative, James Caan (former Dragons Den star and Chairman of a government body set up to oversee the initiative) encouraged all young people to strongly consider starting a business as a possible career option:

“Start-Up Loans Company aims to stimulate entrepreneurship across England and highlight starting a business as a viable career option for young people.

“I encourage everyone aged 18-24 to apply and see where their business idea can take them.”

The maximum terms for loans awarded under the scheme are set at 5 years with the interest rate calculated as the Retail Price Index (RPI) plus 3 % with all repayments being reinvested back into the fund to support other young entrepreneurs with dreams of starting a business.