Start Up Loans scheme has given £250m to UK entrepreneurs
1st September 2016 | News
A government-funded loans scheme has supplied £250m worth of loans to start-up businesses across the country since the scheme’s foundation in 2012.
Business and Energy Secretary, Greg Clark, confirmed that the scheme had reached the milestone on Wednesday, helping new businesses to create more than 45,000 jobs in the last four years.
A Start Up Loan is a personal loan available to all entrepreneurs looking to set up or grow their business. The government-backed funding features a fixed interest rate of just six per cent per annum and the ability to borrow anything from £500 to £25,000.
The repayments on the loan are structured on a monthly repayment basis, based on a loan repayment term of between one and five years.
The scheme works with a national network of Delivery Partners based throughout England, Wales, Scotland and Northern Ireland. In addition to helping applicants prepare their business plan and cash flow forecast. All Delivery Partners are responsible for assessing final applications and offering ongoing mentoring support to successful applicants.
Tim Sawyer, CEO, Start Up Loans Company, said that for every £1 invested in start-up businesses, the scheme has returned £3 to the UK economy overall.
“Small and medium enterprises drive our economy, and the role start-ups play in this shouldn’t be over-looked,” said Sawyer.
“Seeing such a great demand for finance from Britain’s would-be micro-business owners is a great indication of the appetite for growth in this sector.
“This Government will build on the success of Start Up Loans to give entrepreneurs the support and opportunities they need to start a business, grow it in Britain and turn it into a global success story.”