The recently launched Startup Loans initiative has been getting plenty of press, (both good and bad) on whether or not it really is a good option for a young person with an idea for a business to pursue. However, rather than getting our political hats on and giving our own tuppence worth, we thought we’d let you make your own mind up on whether or not it’s for you.
Startup Loans - the basics you need to know:
Who can Apply? Currently the loans are open to anyone aged between 18-24 who is living in England and has a great idea for a business.
How to Apply? The application process is currently very straightforward. There is a basic online form to complete. Once this is done, a Regional Delivery Partner will then contact an applicant to review their application, and assess how best to present the business idea or proposal to ensure the loan is awarded. That Delivery Partner will in turn be responsible for administering any loans to successful applicants.
What’s on offer? The loan itself is a personal loan and it is expected that the average loan will be for circa £2500. All loans must be paid back within 3-5 years at a fixed APR of 6%. All interest is calculated on a monthly basis. Business support in the form of mentorship is also part of the package as is 6 months’ access to Regus Virtual Office package and business lounges globally.
When to Apply? Applications are open now and the government has pledged that £10 million is available for the scheme. If it proves to be successful ( i.e. if applicants start paying back their loans and prove to have viable businesses), there are plans to increase the monies available by £32.5 million in 2013/2014 and by £40 million in 2014/2015.
Only time will tell how successful this scheme will be and if it really will have a positive impact on helping more startup businesses get off the ground. We say, watch this space...