What are Government Startup Loans and Am I Eligible?

- by Sarah Connelly

In 2012, the UK government initiated a scheme to help build more businesses in the UK. As part of the scheme, they provide loans to individuals who are looking to start a new business that will be based in the UK. Previously, the scheme was only available to anyone over 30 years of age. In 2013, the age cap was removed and anyone over 18 can apply. The scheme is funded by the British Business Bank and aims to help 10,000 entrepreneurs every year.

Find out what you need to be eligible for a Government start up loan! Cashfloat  Find out what you need to be eligible for a Government start up loan!  Cashfloat

What are Start-Up Loans?

Apply here

What are Start Up Business Loan Requirements?

To be eligible for a government startup loans, you need to:

  • Be over 18 years old
  • Have the right to work in the UK
  • Be living in the UK
  • Have a business plan OR a business that’s been trading for 6 – 24 months
  • Have been denied by a bank

Loan Features:

  • Amount: £500 – £25,000
  • Duration: 1 – 5 years
  • Interest rate: 6% a year (fixed)

How do Business Start Up Loans Work?

  1. Next, your application will be looked at by an approved assessor. They will assess your business plan, capabilities and even your attitude to gauge how serious you are about your endeavour and if it is likely to succeed.
  2. A business advisor will then contact you to help you gather any other necessary information and complete the application.
  3. You’ll then receive a decision. If you’ve been approved, it could still take up to a month to receive your loan. In most cases, they may require more information, so approval and funding could take much longer.
  4. You will then need to make monthly repayments over a fixed term.
What’s a business plan?

What does the Start Up Loans Company Check?

Once you submit your application for a government startup loan, they will check the following:

  1. Your affordability – Whether or not you have the disposable income to make the repayments. This will be very carefully analysed to ensure you can afford the loan.
  2. How capable your business is of succeeding – This is perhaps the hardest part of the assessment to prepare for, primarily as it depends a lot on the opinion of your assigned Business Advisor. The assessor will carefully examine your business plan to predict whether your business is likely to succeed or not. Key things that will be examined are:
    1. Whether there is a demand for your product/service
    2. If you have the necessary abilities to run the type of business you want

Business Start Up Loans FAQs

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About The Author
Sarah Connelly
Sarah is an enthusiastic writer, blogger and an eager agent of change. After completing her degree in Computer Science in one of London’s esteemed universities, Sarah’s early career in programming left her creatively frustrated. Looked for a way to combine her creative and analytical side, Sarah’s search led her to Digital Marketing and now she writes content and code for Cashfloat. Sarah enjoys spreading awareness about common financial issues and the importance of money management. With her STEM background, Sarah believes strongly in ethical business management and consumer protection. in her free time, Sarah enjoys reading, watching movies and eating out. After all, #YOLO!
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* Cashfloat terms and conditions apply. Applicants must be 18 or over. All loans are subject to affordability, applicant verification and traditional credit checks via various national databases by Cashfloat responsible lending policy. In most cases, loan decisions may take up to 30 minutes during office working hours. If your bank does not support Faster Payments, funds will be sent to your account the same day as approval so long as you’re approved by 16:30.

*Money will funded to your bank within 1 hour of approval - Mon-Fri during working hours.

Representative example: Borrow £700 for 6 months. 1st monthly repayment of £168.45, 4 monthly repayments of £224.60, last monthly repayment of £112.20. Total repayment £1,179.05. Interest rate p.a. (fixed) 185.39%. Representative APR 611.74% Our APR includes all applicable fees. Daily interest is capped at 0.793%.

Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk