Over £110 million now available to create over 40 thousand new businesses
Age range increased from 24 to 30 to meet demand, and help more new businesses get affordable finance
New figures show 3,000 applied for the scheme and 100 applicants per week awarded funds to launch new businesses
The Prime Minister has announced that a £30 million boost has been put into the Government start-up loans scheme so as to support and finance the next generation of businessmen and entrepreneurs. This financial boost will help businesses by the thousands, and ultimately push Britain ahead of the global economic race.
The additional money will boost the total pot for Start-Up loans to over £110 million, which will help start over 40,000 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.
Since its launch over 3,000 people have applied for 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 few months that the scheme has been live hundreds of loans have already been approved – with thousands more expected to reach approval stage in the weeks and months ahead.
Prime Minister David Cameron said: “Start-up loans are an absolutely central 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 superb 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 enables 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.”
Michael Fallon said: “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;
Generous tax schemes for people investing in start-ups and growing companies in UK; and,
Up to £20 billion in new, cheaper finance for businesses through innovative Supply Chain Finance scheme.