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Support for start-ups: £900m government plan expanded, 33,000 new loans for SMEs

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  • Startup loans are now available for start-up loans up to £25,000 for 2 to 3 years
  • New ‘Second Loan’ available to companies trading for up to 5 years
  • Loans to provide much-needed support to UK innovators and entrepreneurs

The £884m financing scheme for new businesses has been significantly expanded to provide much-needed funding for a range of innovative start-ups in the UK, Commerce Secretary Jacob Rees-Mogg said today (September Sunday 25th) announced.

Since its launch in June 2012, the Startup Loan Program has provided over 95,000 loans to start-ups across the UK, averaging just over £9,000 in support.

The availability of 33,000 new loans expands program eligibility to support transactions from two years up to three years. Businesses can apply immediately under the new standards.

Startup Loans not only offer a fixed interest rate of 6%, they also provide mentoring, support and funding to aspiring business owners across the UK, helping those who find it difficult to secure loans from traditional lenders provide.

In addition to this, businesses that have been in business for up to five years are eligible for a new second loan. It allows eligible companies for 3 to 5 years to receive much-needed government-backed loans to expand their operations at a critical time.

Business Secretary Jacob Rees-Mogg said:

“This government has a relentless focus on boosting growth to create better jobs, raise wages and fund critical public services like the NHS.

“Encouraging entrepreneurship and the prosperity of new businesses is essential to economic growth and rising living standards.

“From Welsh hair salons to Northern Ireland furniture businesses to Lake District cake distributors, we will support these small businesses through this challenging time and position them for growth by expanding our start-up loan schemes. You can. England.”

The scheme supports businesses across the UK, with over £54m in Scotland, over £42m in Wales and over £12m in Northern Ireland.

The expansion of the startup loan scheme follows the 2021/22 Expenditure Review, in which the government pledged to provide 33,000 loans to the program over the next three years.

The extension provides further government support for businesses grappling with cost pressures and adds to measures announced by the prime minister earlier this week. This includes introducing an energy bill relief scheme to help businesses with their energy costs, reforming and simplifying payroll rules. About the liquor tax system.

It also builds on key measures announced by the government specifically for SMEs. This includes extending the £4.5bn recovery financing scheme and offering the Help to Grow scheme, which provides mentoring and free software to thousands of businesses across the UK.

Michelle Ovens CBE, founder of Small Business Britain, said:

“Expanding financing opportunities for start-ups and growing companies will undoubtedly be welcomed as a positive move for small businesses to unlock their potential. With access to access essential, rising costs and increasing challenges across the board, they need all the help they can now to realize their ambitions.”

Richard Behrman, Managing Director of Startup Loans, British Business Bank, said:

“We are pleased to expand the scope of our Startup Loan Program to assist businesses in need of additional support during the ongoing economic uncertainty.

“This extension of the program will allow us to work with businesses that were probably just getting started when the pandemic hit, or that are ready to scale now that they have bounced back. I want to do it.”