Jacob Rees-Mogg has announced that an £884m loan scheme for new businesses is to be greatly expanded. With 33,000 new loans available, the programme’s eligibility will be extended to support businesses trading for up to three years, up from two years. Businesses can apply immediately under the new criteria.
The Start-Up Loans programme has provided more than 95,000 loans to start-ups across the UK since its inception in June 2012, offering an average of just over £9000 in support. Start-Up Loans provide a fixed interest rate of 6%, as well as mentoring, support and funding to aspiring business owners across the UK, providing support to those who might find it challenging to secure loans from traditional lenders.
Alongside this, a new second loan will be available to businesses operating for up to five years, providing eligible businesses between 3 and 5 years old with Government-backed finance to support their expansion.