The Government is to loan over £80 million to young entrepreneurs under the new StartUp loan programme.
The long awaited StartUp loans for young entrepreneurs, is a strings-free** loan, akin to the University Student loans currently available to anyone wanting to enter into high-education. The start-up loans of up to £2,500 are available from today and are available to young people between 18-24, living in England, with a business idea.
In addition to the loan the Government has also committed to providing mentors and mentoring for the entrepreneurs. Additionally they will also receive a free copy of the StartUp Loans Kit, which offers all the guidance you need to start a business plus over £500-worth of offers on products from business cards to websites, netbooks and work suits.
"To be an entrepreneur is more than having a job. It gives you the freedom to make your own mark"
James Caan, Dragons' Den
Lord Young of Graffham, Originator of StartUp Loans, and a serial entrepreneur himself, said at the launch, "The StartUp Loan programme is designed to help you create a business plan, and then give you a loan to get started. You will get continuing support from your mentor, and your future will be in your own hands. The limits of your business will be up to you."
Dragons' Den James Caan
Commenting on the launch, Dragons' Den investor and Chairman of the StartUp Loans Company, James Caan said. "To be an entrepreneur is more than having a job. It gives you the freedom to make your own mark, in the way in which you choose, and create your own path to success. It can be challenging, and exceptionally hard work, but the rewards are immeasurable."
So what's the small print? For StartUp loans
**Yes there are strings, it's a loan like any other loan, so you will need to pay it back. You will be required to pay back the loan within three to five years at a fixed APR (annual percentage rate) of 3% plus RPI (Retail Price Index) which is currently 3.5%. You can have a student loan as well as a StartUp loan, and you will need to submit a business plan, and you might be asked to come in for a chat to talk your idea through. Unlike the Student loan there will be a choice of loan providers, but the actual lenders aren't yet confirmed, it's very likely that they will be banks, sorry, there's no escaping the chat with the bank manager.
Entrepreneurs can register at http://businessinyou.bis.gov.uk/ and they will then be directed to a provider once the lenders are decided.