Start-Up Loans scheme is extended
03 Jan 2013
A Government scheme aimed at encouraging young people to start a new business is to be extended, Downing Street has revealed.
The Start-Up Loans scheme originally offered people aged between 18 and 24 the opportunity to apply for loans of around £2,500. However, the age limit will now be expanded to those up to 30.
Ministers have also added an extra £30m to the initiative, taking the total funding available to £112m over the three years to April 2015.
Under the scheme, the loans must be repaid within a maximum period of five years, with interest charged at a rate of RPI plus 3%.
Successful applicants are also offered mentoring as well as free products and services from sponsors and partners.
‘Start-up loans are an important part of my mission to back aspiration, and all those young people who want to work hard and get on in life, so this country competes and thrives in the global race,’ commented the Prime Minister David Cameron.
‘They are a great way to help this next generation of entrepreneurs get the financial help - and the confidence - to turn that spark of an idea into a growing, thriving business.’
Meanwhile, entrepreneur and chairman of the Start-Up Loans Company, James Caan, said: ‘There has been a major shift in the way business is viewed by the public, and entrepreneurs are now seen as creative and exciting role models’.
He added: ‘I am delighted to see that more and more young people are now looking to set up their own business.’
It is thought that around 3,000 people have registered an interest in the scheme, which is being delivered through charities such as The Prince's Trust.