Startup loans is a scheme designed for 18-25 year old who wish to start their own business. The scheme is open to people who are unemployed, in full-time education or employment and do not have the sufficient finance or support.
Startup loans will start with a £10 million pilot scheme for the financial year, followed by £32.5 million in 2013/14 and £40 million in 2015/16. Depending in the result of the pilot the scheme will be looking to engage commercial partners to further build the lending pot.
The startup loans will be administered by organisations such as the Prince’s trust and will be chaired by one of the UK’s most known entrepreneurs James Caan.
Young entrepreneurs aged 18-24 will accessing the scheme can expect to receive expert support in order to develop a business plan and access relevant training. Once a business plan is approved (if approved) the young entrepreneur will be able to receive financial support in the form of a loan, typically £2,500 payable in up-to five years.
StartUp Loans’ introduction and the release of Lord Young’s report are both essential components of the Business in You campaign, which targets 18 to 24 year olds with specific, focused messages.
- 2011/12 saw the highest level of company startups with a whopping 450,000 newly registered companies in Great Britain
- The UK is currently home to 4.13 million self-employed people and 4.5 million small and medium sized businesses
- Barclays data estimates that in 2009, there were 37,100 startups by under 25’s, this represents 9% of startups in England and Wales that year.