Start Up Loans

British Business Bank
Ongoing

Funding

£500 – £25,000

Location

UK-wide

Applications

Rolling (always open)

Overview

Start Up Loans are government backed loans of £500 to £25,000 per founder for starting a business or growing a young one, with up to £100,000 available per business. Repayment runs from one to five years at a fixed rate, currently 7.5% a year, with no fees and no security required, and every borrower gets twelve months of free mentoring. This is a loan you repay rather than a grant, but it is one of the most accessible routes to early funding in the UK and applications are always open.

Eligibility

Who can apply:

sole traderlimited companycic

Key requirements:

  • This is a loan you repay with interest, currently 7.5% fixed, not a grant
  • You must be 18 or over and live in the UK
  • Your business must be new or in its early years of trading
  • Borrow £500 to £25,000 per founder, up to £100,000 per business
  • Applications include a personal credit check and affordability assessment
Who is this for?

People starting a UK business or running one in its early years who need working capital, equipment or stock and cannot get a fair deal from a commercial lender. It suits sole traders, limited companies, partnerships and CICs. It is a loan with monthly repayments, so it fits businesses expecting income, not projects that need a grant.

Full details from British Business Bank

Start Up Loans is the government backed loan scheme for people starting a business or growing a young one. Each founder can borrow between £500 and £25,000, and a business with several founders can borrow up to £100,000 in total. This is a personal loan for business purposes, repaid over one to five years at a fixed interest rate, currently 7.5% a year. There is no application fee, no arrangement fee, no early repayment charge, and no security or personal guarantee is required. Every funded borrower also gets twelve months of free business mentoring, which most commercial lenders do not offer. Applicants must be aged 18 or over, live in the UK, and be starting a business or running one in its early years of trading. Applications run through the British Business Bank’s delivery partners and are always open, with decisions typically taking a few weeks. This is a loan you repay, not a grant. Read the full terms and consider independent advice before taking on repayments.

How to apply

Apply on the Start Up Loans website. You register, complete an eligibility check, then submit a business plan and cash flow forecast; templates and support are provided free. A delivery partner assesses your application, including a personal credit check. Decisions typically take a few weeks, and funded borrowers are offered twelve months of free mentoring. Applications are open all year round.

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Last updated: 20 July 2026