Start Up Loans

About this programme

Start Up Loans is a government-backed personal loan programme for people starting or growing a new UK business. It is delivered by the Start Up Loans Company, which was established in September 2012 and is part of the British Business Bank, the UK's state-owned economic development bank. The programme exists specifically for founders who struggle to access finance from mainstream lenders.

The loan is unsecured and personal rather than a business loan: it is made to the individual applicant, not the company, so no business assets or personal collateral are put up as security. The Start Up Loans Company works with a national network of business support partners across England, Wales, Scotland and Northern Ireland, who help applicants prepare their business plan and cash flow forecast and assess final applications. A separate FCA-regulated finance provider, GC Business Finance (GCBF), manages the loan agreements, issues funds to successful applicants, and handles all repayment and administration matters once a loan is granted.

The Start Up Loans Company states it has supported more than 100,000 business ideas with over £1 billion worth of loans since 2012, with an average loan amount of £10,264.

How it works

Applicants can borrow up to £25,000 per person as an unsecured personal loan, at a fixed interest rate of 7.5% per annum, repayable over a term of one to five years. There are no fees for arranging the loan or for repaying it early.

In a business partnership, each partner can individually apply for up to £25,000, but the Start Up Loans Company will lend a maximum of £100,000 to any one business in total. Each partner's application is assessed separately, and if successful, each individual is personally liable for their own loan.

A successful first-loan recipient qualifies immediately for up to 12 months of free business support, including a dedicated business mentor. Mentoring and post-loan support is delivered through Newable, the official Start Up Loans Business Support Partner, working with UMi Sat Nav, a digital platform of on-demand business tools and resources covering planning, marketing, sales, recruitment and funding. Recipients also get 24/7 access to online support services and live (or on-demand) webinars from industry experts, and are enrolled for 12 months in Start Up Loans Rewards, a customer-discounts programme.

Recipients who have already drawn down a first loan can apply for a Second Loan at the same fixed 7.5% per annum rate and one-to-five-year term, for further business needs such as equipment or expansion, once first-loan eligibility conditions are met.

Who can apply

To apply for a Start Up Loan, the applicant must be 18 or older, a current UK resident with the right to work in the UK, and either starting a new business or have been trading for up to 60 months (5 years). The business itself must be based in the UK.

The applicant must be unable to secure finance from other sources (self-declaration is accepted), and must pass the Start Up Loans Company's credit checks with the Credit Reference Agency and Fraud Prevention Agencies, and be able to afford the repayments. The business type and the intended loan purpose must also be eligible under the scheme's terms.

Business partnerships, people buying an existing business, and franchise businesses can all apply provided they meet the standard eligibility criteria. An applicant buying an existing business remains eligible even if that business has traded for more than 60 months under previous owners, provided the applicant personally has not owned it for more than 60 months; financial accounts for the business must be sourced and submitted, and any prior or current trading loss must be addressed directly in the business plan. Receipt of Universal Credit does not make an applicant ineligible.

Excluded business types include: weapons, chemical manufacture, pornography, drugs, illegal activities, banking and money transfer services and other FCA-regulated activities, unlicensed private investigators, gambling and betting, property investment, and third-party agents whose revenue is mainly commission (this does not apply to eligible franchise businesses). Charities are generally excluded, though Community Interest Companies, Not-for-Profits and social enterprises with a sole community focus may be considered case by case. The Start Up Loans Company states other exclusions may apply and it reserves the right to update this list.

Excluded loan purposes are: repaying existing debt, funding training, qualifications or education programmes, and investment opportunities that do not form part of an ongoing sustainable business.

For a Second Loan, the applicant must have drawn down their first loan at least 6 months earlier, have been trading for at least 3 and no more than 60 months, and have made all first-loan repayments on schedule for the 3 months preceding the second application (or, after a capital repayment holiday, have made 3 full capital-repaid repayments on schedule beforehand).

How to apply

1. Step 1 — Eligibility: review the Start Up Loan's features and eligibility criteria, then answer a short set of questions confirming the business and intended use of the loan fit the scheme.
2. Step 2 — Registration: provide personal details and disclose any State aid received in the past 36 months. This completes registration; an email follows with instructions to set up an online account and password for the customer portal.
3. Step 3 — Residential information: provide personal/residential details, used to match the applicant with a Business Support Partner — including, where relevant, a specialist partner for applicants with an armed forces connection.
4. Step 4 — Credit check: a personal credit check is run (covering credit cards, utility bills, phone contracts, mortgages and similar financial history) alongside verification of personal bank details, which is where loan funds would be transferred. The credit check result is valid for 90 days. Applicants who pass are matched with a Business Support Partner and assigned a dedicated business adviser.
5. Step 5 — Business information: upload a Business Plan (a free template is provided), a Cash Flow Forecast, and a Personal Survival Budget. The assigned business adviser reviews these and any supporting documents and works with the applicant to prepare them for assessment. A successful application immediately qualifies the applicant for 12 months of free mentoring.
6. The Start Up Loans Company states it will be in contact within two working days of a submitted application form.

Documents you’ll typically need

• Business Plan (free template provided by Start Up Loans)
• Cash Flow Forecast
• Personal Survival Budget
• Proof of identity (scanned original physical document)
• Proof of address (scanned original physical document)
• Proof of personal bank account
• Three consecutive months of personal bank statements (PDF export of online statements accepted; screenshots or photos are not)
• Visa (where applicable, scanned original physical document)
• For a purchased existing business: a copy of that business's financial accounts

Frequently asked

Reviewed 2026-08-16. Programmes change — confirm current eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.