Young entrepreneurs get access to first start-up loans
A start-up scheme is set to help launch up to 30,000 new companies providing young people business support and loans.
Start-Up Loans will provide budding entrepreneurs between the ages of 18-24 with a range of support. It includes both youth that are unemployed and in full time education or employment.
The scheme will assist entrepreneurs that are starting a new business or are in the early stages of development with capital in the region of £2,500. Further, as Businessess Secretary Vince Cable said, "They will also get access to professional mentors who will pass on their knowledge and expertise about running successful enterprises.”
The first wave of cash from the £82.5 million Start-Up Loans scheme is now being distributed. Government hopes this will help to inspire the next generation of entrepreneurs to start or grow their business.
Start-Up Loans will be supported with £10 million for a pilot scheme this financial year. It is expected to demonstrate that there is demand from young people and capability within the support network to engage and support them. A further £32.5 million in 2013/14 and £40 million in 2014/15 being made available to grow the scheme.
The Start-Up Loans will be available in England only. The interest rate for the loans will be at RPI plus 3 per cent.
The Government is looking to engage commercial partners to further build the lending pot. 1,200 people have registered an interest in applying for a loan so far.