The scheme, announced in Budget 2012 and launched back in May, initially has £10 million worth of loans to young startups in this, a pilot trial.
Should the trial be successful, a further £32.5 million will be made available next financial year 2013-2014 with another £40 million in the tax year 2014-2015.
Speaking at the MADE entrepreneurial festival in Sheffield, Vince Cable, the Business Secretary, met the first young entrepreneurs to benefit from the Start-Up Loans scheme.
“With more young people than ever before looking to start their own business, Start-Up loans will provide the support they need to help get their business ideas off the ground. The scheme is not just about money. They will also get access to professional mentors who will pass on their knowledge and expertise about running successful enterprises. Money is going out of the door now, so those who want to take advantage should apply today.”
The aim of the scheme is to encourage more youngsters into starting their own business and will lend £2,500 to any 18-24 year old who is unemployed, in education or working and who has a business idea that can be turned into a viable business plan.
Cable said, the budding businesspeople will also have access to professional mentors who will pass on their expertise about running a successful business.
The first business loans are being distributed by The Start-Up Loan Company, chaired by the entrepreneur and ex TV Dragons, James Caan, who added: “Start-Up Loans are exactly what young people need to get them on their way to launching their own businesses. Through the Start-Up Loans Company, we are encouraging young people to be more entrepreneurial by taking their future into their own hands and creating their own opportunities.”
So far 1,200 young entrepreneurs have applied for beginners business loans but the Department of Business, Innovation & Skills (BIS) is banking on 30,000 youngsters taking the initiative.
The Start-Up Loans are part of the Government’s Business In You campaign so if you’re looking to take advantage of the scheme then go to www.StartUploans.co.uk
