The official Start Up Loans scheme
The scheme’s published terms checked on 20 October 2026 offer £500–£25,000 per eligible individual at a fixed 7.5% annual interest rate, repaid over one to five years. There are no application or set-up fees, and the scheme states no early repayment fee. Successful applicants receive 12 months of mentoring.
Owners or partners can apply individually, subject to assessment, with a maximum of £100,000 per business. These are not automatic entitlements. The official scheme describes eligible businesses as starting up or having traded for less than 60 months; check its complete criteria before applying.
It is a personal loan, even when the business is a company
You remain personally responsible for repaying a Start Up Loan if the venture stops trading or plans change. Unsecured does not mean non-repayable. Do not assume limited-company status transfers this personal obligation to the business.
Compare the personal repayment commitment against your household budget as well as the business forecast. The scheme asks for a personal survival budget alongside business planning information. Each owner’s application is assessed separately rather than treating a business’s aggregate maximum as one shared company loan.
How to apply through the correct route
Apply through the official Start Up Loans website and its application process. Prepare a business plan, cash-flow forecast and personal survival budget showing the use of funds and a credible route to repayment. The scheme also provides application support and templates.
Shareholder’s general finance enquiry is not a Start Up Loans application and does not check scheme eligibility. Its current company lookup is aimed at eligible limited companies and LLPs. If you are applying for the official personal-loan scheme, follow the official source linked below.
Other ways to fund a start-up
Depending on the plan, alternatives can include staged founder investment, eligible grants, equity, equipment leasing or supplier terms. Grants have their own conditions and are not universally available. Equity does not have scheduled loan repayments but changes ownership.
An asset-backed purchase may suit a specific machine or vehicle, although approval, deposits and guarantees still depend on the funder. Sales-based finance usually needs actual trading receipts; a projection of future sales is not the same as an eligible history.
Make the borrowing case specific
Separate essential launch costs from optional spending and personal living costs. Build a downside case for a delayed opening or slower first sales. Do not rely on immediate full-capacity trading to meet the first repayment.
Keep supplier quotations, explain the founder contribution and reserve some cash for overruns. Compare when repayments begin with the expected cash receipts. A smaller initial launch may be safer than borrowing the maximum and committing all available cash before revenue is proven.
A few things worth knowing
Common questions
Is a Start Up Loan a grant?
No. It is repayable personal borrowing for business purposes, with interest. A business failure does not cancel the repayment obligation.
Is the official scheme rate still 6%?
The official product page checked on 20 October 2026 states a fixed 7.5% annual interest rate. Older guides may show earlier terms; verify the current official rate when applying.
Can I get £100,000 personally through the scheme?
The published individual maximum is £25,000. The £100,000 business maximum relates to separate eligible owners or partners applying, not one individual receiving £100,000.