Government-backed Start Up Loans
Borrow £500 to £25,000 per founder through the British Business Bank's Start Up Loans programme. Available to businesses that haven't started trading yet and those trading for up to five years.
Start your application
What is a Start Up Loan?
A Start Up Loan is a government-backed personal loan from £500 to £25,000 provided through the British Business Bank's Start Up Loans programme and designed to help you start or grow a business.
Whether you're looking for start up business funding or a business loan for a new business, funding is available to businesses that haven't started trading yet and those trading for up to five years.
Funding can be used for equipment, stock, marketing, working capital and more. You'll also receive support from a dedicated adviser to help prepare your application, plus 12 months of free mentoring once funded.
Start Up Loan at a glance
Start Up Loans are personal loans for business purposes. They are available to businesses not yet trading and businesses 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
- £500 to £25,000 per founder
- Up to £100,000 per business
- Fixed 7.5% interest rate
- Repayment terms from 1 to 5 years
- No setup fees
- No early repayment fees
- No security required
- 12 months of free mentoring
Who can apply for a Start Up Loan?
Start Up Loans are available to people starting a business and businesses trading for up to five years. If you're looking for a business start up loan to launch a new venture, invest in growth or move your business forward, you may be eligible.
You may be eligible if you are:
- Planning to start a business
- Trading for less than five years
- A sole trader, partnership or limited company
- Looking to launch, grow or invest in your business
- Applying on your own or with other founders
Funding for multiple founders
Each founder can apply for up to £25,000. Eligible businesses with up to four founders may be able to access up to £100,000 in total funding.
What can a Start Up Loan be used for?
- Equipment
- Vehicles
- Stock
- Marketing
- Working capital
- Website development
- Technology
- Premises costs
Why founders choose Start Up Loans
| Start Up Loan | Bank Loan | |
|---|---|---|
| Government-backed |
Government-backed
Yes
|
Government-backed
Varies by lender
|
| Business stage |
Business stage
Pre-start to 5 years
|
Business stage
Eligibility criteria varies
|
| Funding available |
Funding available
£500 - £25k
|
Funding available
Funding limits vary
|
| Interest rate |
Interest rate
Fixed 7.5%
|
Interest rate
Rates vary
|
| Dedicated support |
Dedicated support
Included
|
Dedicated support
Support levels vary
|
| Free mentoring |
Free mentoring
12 months included
|
Free mentoring
Additional support varies
|
| Security required |
Security required
No security required
|
Security required
Security requirements vary
|
How does credit history affect a Start Up Loan application?
A credit check forms part of the assessment process. Applications are assessed on a range of factors, including affordability and an applicant's overall financial circumstances.
What do I need to apply for a Start Up Loan?
You don't need everything figured out before you apply. If you have a business idea and a funding requirement, your dedicated adviser can help you prepare everything needed for your application.
How to apply for a Start Up Loan
Complete the form below. There's no credit check at this stage.
Receive support from a dedicated BEF adviser.
We'll help you prepare everything needed for assessment.
Once approved, access your funding and 12 months of mentoring.
Funding can be in place in as little as 3 to 8 weeks
Start your applicationWhy apply through BEF
Dedicated adviser support
Expert guidance throughout your application.
Help preparing your application
Strengthen your plans before assessment.
Trusted Start Up Loans partner
Helping founders access funding since 2012.
Support beyond funding
Free mentoring to help your business grow.
Ready to take the next step?
Start your applicationFrequently Asked Questions
Still have questions? Here are answers to some of the most common questions founders ask before applying for a Start Up Loan.
Start your funding journey with confidence
Whether you're developing a new business idea or already trading, our team is here to help you explore your options and move forward with confidence. Completing our enquiry form won't affect your credit score.
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.