An £884 million loan scheme for new businesses is to be expanded, it has been revealed.

Announced by Business Secretary Jacob Rees-Mogg last week, there are 33,000 new loans available, offering much needed financial support to start-ups across the UK.

The scheme’s eligibility originally supported businesses trading for up to two years but has now been increased to three years.

Your business can apply for this financial aid immediately under the new measures.

What is the Start Up Loans scheme?

Since its launch in June 2012, the scheme has supported UK start-ups with more than 95,000 loans, providing an average of over £9,000 per loan.

Start Up Loans provide a fixed interest rate of six per cent, alongside mentoring, guidance and financing to new business owners.

As well as this, an additional loan will be offered to businesses running for up to five years, providing much needed support to aid their growth.

Further support

The news of this expansion builds on further important measures the Government has introduced for small businesses.

This includes extending the £4.5 billion Recovery Loan Scheme and supplying the Help to Grow schemes, which deliver mentoring and free software to thousands of UK firms.

Michelle Ovens CBE, Found of Small Business Britain, commented on the announcement:

“The expansion of funding opportunities for start-ups and growing businesses will certainly be welcomed by small firms as a positive move to unleash their potential.

Access to finance is vital for entrepreneurs to grow, and with rising costs and challenges across the board they need all the help they can get right now to realise their ambitions.”

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