Start Up Loans

Government-backed start-up finance from Start Up Loans

Start Up Loans is a UK programme that provides government-backed personal loans for business use, aimed at people starting a new business or running one that has been trading for less than 60 months. The scheme is operated by The Start Up Loans Company, which was established in September 2012 and is a wholly owned subsidiary of British Business Bank plc.

According to the programme's own figures, it has supported over 100,000 business ideas with more than £1 billion worth of loans. The stated mission is to make owning a business a viable career for people who struggle to raise finance.

Loan terms and conditions

The core product is an unsecured personal loan of up to £25,000, with an average loan amount of £10,264. The interest rate is fixed at 7.5% per year, and the loan is repaid over a term of between one and five years. No arrangement fee is charged, and there is no fee for repaying the loan early. Loans are available strictly to people aged 18 and over and are for business use only; finance is subject to status and terms and conditions apply.

The site also provides a loan repayment calculator to estimate total and monthly repayments based on the chosen amount and term, and describes options such as tranching a loan, second loans and match funding with Start Up Loans.

Mentoring and business support

Every recipient of a first Start Up Loan receives 12 months of free business mentoring. The programme also offers help with writing business plans and cash flow forecasts, along with templates and how-to guides. A free weekly webinar is held for people who want to find out whether a Start Up Loan is right for them.

Start Up Loans has partnered with The Open University to offer free courses for first-time business owners, covering subjects such as entrepreneurship, career and leadership, finance and accounting, sustainability and project management.

Eligibility and application

The first eligibility criterion is that the applicant is starting a new business or has been trading for less than 60 months; the site sets out the remaining criteria to check before applying. The application process requires supporting documents, including proof of identity, proof of address, proof of a personal bank account, visa documentation where relevant, and three months of personal bank statements. Guidance is provided on how to scan and upload these documents.

Ambassadors and case studies

Each year the programme appoints Start Up Loans Ambassadors. In October 2025 it announced 14 small businesses from across the UK as its new Ambassadors for 2025/2026. The site also publishes case studies of backed businesses, including The Modern Builder, which uses planning intelligence and AI in construction sales; Hinlura, a skincare brand founded by a 23-year-old from London; and Leteau, a Dutch-style spa for babies opened in Bristol by two mothers with support from SWIG Finance.

Structure and governance

The Start-Up Loans Company is a company limited by guarantee, registered in England and Wales with registration number 08117656 and registered office at Steel City House, West Street, Sheffield, S1 2GQ. It is a wholly owned subsidiary of British Business Bank plc, registered in England and Wales with registration number 08616013 and the same registered office. British Business Bank plc is described as a development bank wholly owned by HM Government; it and its subsidiaries are not banking institutions and do not operate as such, and with the exception of BBB Investment Services Limited they are not authorised or regulated by the Prudential Regulation Authority or the Financial Conduct Authority.