Start Up Loans
Borrow £500 to £25,000 to start or grow your business with a Start Up Loan.
Start your application
What is a Start Up Loan?
A Start Up Loan is a government-backed personal loan designed to help people start a new business or develop an existing business.
Delivered through the British Business Bank's Start Up Loans programme, it offers £500 to £25,000 of funding at a fixed interest rate, with repayment terms of one to five years. Successful applicants also receive 12 months of free mentoring.
See how a Start Up Loan helped a new business
Starting a business can feel like a big step. Hear from a founder who used a Start Up Loan to help turn their plans into reality.
Start Up Loan at a glance
Start Up Loans are personal loans for business purposes. They are available to people planning to start a business and eligible businesses that have been trading for up to five years.
Business Enterprise Fund is an official Business Support Partner for the British Business Bank's Start Up Loans programme. We've been supporting applicants since the programme launched in 2012.
For businesses starting out or trading up to 5 years
- Borrow: £500–£25,000 per founder
- Multiple founders: Up to £100,000 available
- Interest rate: 7.5% fixed
- Repayment term: 1–5 years
- Security: None required
- Arrangement fee: None
- Early repayment fee: None
- Mentoring: 12 months free mentoring
What you need to know
Here's what you need to know about a Start Up Loan before deciding whether to apply.
Why choose BEF for your Start Up Loan?
We're an experienced Start Up Loan partner
BEF has supported applicants through the Start Up Loans programme since 2012, helping new and growing businesses access finance.
You'll have support throughout the application
You'll have a dedicated adviser who can explain what's involved and help you understand what you need to prepare.
We're a not-for-profit lender
BEF is a Community Development Finance Institution. Our purpose is to help businesses access fair finance and support economic growth in the communities we serve.
Support continues after you receive your funding
Successful Start Up Loan applicants receive 12 months of free mentoring through the Start Up Loans programme.
How to apply for a Start Up Loan
Complete the form below. There's no credit check at this stage.
We'll discuss your plans, explain what's involved and help you understand what you'll need for your application.
You'll provide information about your business, finances and how you intend to use the funding.
Once your application has been assessed, you'll receive a decision and, if approved, we'll explain the next steps towards receiving your funding.
Funding can be in place in as little as 3 to 8 weeks
Start your applicationStart Up Loan FAQs
Got questions before you apply? Find answers to some of the most common questions about Start Up Loans below, or talk to our team if you'd like to discuss your circumstances.
Ready to apply for a Start Up Loan?
Complete the form below to get started. There’s no credit check at this stage, and we’ll redirect you to the British Business Bank’s secure site to continue your application.
Loan example (representative APR)
Representative Example - Personal Loan for Business Use Only: £10,000.00 repayable over 60 months at 7.8% Representative APR*. 60 months at the AIR** of 7.5% p.a for fixed monthly payments of £200.45. Total cost of credit of £2,027.00 and total amount payable of £12,027.00. Finance subject to status and 18+ only.
*Annual Percentage Rate (APR) is the total cost of the credit expressed as an annual percentage. It represents the actual yearly cost of credit over the loan term.
**Annual Interest Rate (AIR) is the rate of interest on a loan with the rate compounded on a daily basis.
These calculations are only for illustrative purposes and are not a substitute for professional advice.
Your actual loan terms may vary depending on your circumstances.
If you're not eligible for a Start Up Loan, we may be able to offer an alternative loan. Rates and terms will vary. Further information, and terms and conditions are available on request.
Important legal information
The Start Up Loans Company is a wholly owned subsidiary of British Business Bank plc. It is a company limited by guarantee, registered in England and Wales, registration number 08117656, registered office at 71-75 Shelton Street, Covent Garden, London, England, WC2H 9JQ.
British Business Bank plc is a development bank wholly owned by HM Government. British Business Bank plc and its subsidiaries are not banking institutions and do not operate as such. They are not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA).
A complete legal structure chart for the group can be found at www.british-business-bank.co.uk.