A £30 million boost to the Government’s Start-Up Loans scheme has been announced by the Prime Minister to give the next generation of entrepreneurs the finance and support to start their own business, helping Britain to get ahead in the global race.
The additional money will boost the total pot for Start-Up loans to over £110 million over the next three years, potentially helping to start tens of thousands of new businesses.
The Prime Minister also announced that due to demand from those who had just missed out on the scheme and the challenges faced to secure loans to start a business, the age limit for application will now be extended from 24 to 30 years old.
Over 3,000 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.”