Member Article

Start-up loans receive £30m boost

Funding for start-up loans has received a £30m boost to offer better support to the “next generation” of entrepreneurs in Britain.

David Cameron, PM, announced the cash injection, which will bring the total amount available for new businesses to over £110m for the next three years.

The age limit has also been raised from 24 to 30-years old, to increase the number of people eligible for the scheme.

The Government said it it hopes the expansion of the start-up loan scheme will encourage more entrepreneurs to take it on, after just £1.5m worth of loans has been doled out to under 500 firms since it was launched three months ago.

More than 3,000 people have shown interest in one of the Government’s loans, which claim to offer low interest rates that come to approximately £2,500 with a repayment over five years.

Mr Cameron commented: “Start-Up loans are an important 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 great 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.”

An estimated 100 new businesses are expected to receive approval for a loan in January, and the Government said thousands more firms would also reach this stage in the next few months.

Business Minister, Michael Fallon, said: “Making this support available to a wider age group will encourage even more young people to be entrepreneurial.

“It gives them access to experienced mentors who can offer knowledge and expertise about how to run a successful enterprise. I hope to see a whole new wave of entrepreneurs get their ideas off the ground.

“The Government is determined to back young people who aspire to get on in business and create jobs.”

Adding his comments, 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 enable 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.”

This was posted in Bdaily's Members' News section by Miranda Dobson .