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British Business Bank - Start Up Loans

Support provided by British Business Bank

What does this involve?

A Start Up Loan is a government-backed personal loan available to individuals looking to start or grow a business in the UK.

Applications are made online and will be assigned to a dedicated business adviser. 

The business adviser will review your business planning documents as well as any key supporting documents, and will work with you to get them ready for assessment.

The assessment will take into account the strength and viability of your business, demonstrated through the Business Plan and Cash Flow Forecast and the affordability of the loan through the Personal Survival Budget.

If your application is successful, you will be invited to take up 12-months of free post-loan support.

The loan is unsecured, so there’s no need to put forward any assets or guarantors to support an application.

All owners or partners in a business can individually apply for up to £25,000 each, with a maximum of £100,000 available per business.

Am I eligible?

You are eligible to apply for a loan if:

  • you live in the UK
  • you’re 18 or over
  • you're starting a new business or have been fully trading for less than 24 months
  • you pass the credit checks and can afford to repay the loan
  • you’re unable to secure finance from other sources (self-declaration is acceptable)
  • your business is UK-based
  • you have the right to work in the UK
  • your business type and loan purpose is eligible under the terms of the scheme

Most business types are eligible to be funded with a Start Up Loan, however they are not able to support the following business types:

  • weapons
  • chemical manufacture
  • drugs
  • banking & money transfer service, and other FCA regulated activities
  • private investigators that do not hold the appropriate licence
  • gambling and betting activities
  • property investment
  • agents for third parties, where a third party earns the majority of the revenue or you would only be earning a commission (not to be confused with franchise businesses which are eligible to apply)
  • charities

What does this cost?

It is free to apply for a Start Up Loan.  

Start Up Loans are UK government-backed and charge a fixed interest rate of 6% per year.

You can repay the loan over a period of 1 to 5 years.

Who is this for?

Individuals looking to start or grow a new business in the UK.

How long does this take?

Applications must be completed within 90 days. 

Important information

The Start Up Loans Company is a subsidiary of the British Business Bank. 

Start up loans will help finance the initial costs of starting and developing a business. They can not fund:

  • debt repayment
  • training, qualification or education programmes
  • investment opportunities that do not form part of an on-going sustainable business

Applicants must complete an eligibility check online. If you are eligible you must register to begin the application process. Applicants must submit a Business Plan, Cash Flow Forecast, Personal Survival Budget and Personal Bank Statements for the three months prior to the date of application. 

Next steps

Visit the British Business Bank Start Up Loans website to read more about and apply for a loan.

Support provided by British Business Bank