Applying for a Start Up Loan
A Start Up Loan is a government-backed loan that helps you start or grow a business in the UK. You can borrow between £500 and £25,000.
Start Up Loans
With a Start Up Loan, you:
- can borrow up to £25,000
- repay the loan over a period of 1 to 5 years
- pay interest at a fixed rate of 6% per year, (changing to 7.5% per year on 6 April 2026)
- can get free support and mentoring during the first 12 months of the loan term
There is no application fee or early repayment fee.
The loan is an unsecured, personal loan and you will need to pass a credit check.
Who can apply
You can apply for a Start Up Loan if:
- You are 18 or older
- You have the right to work in the UK
- You are starting a new business or your business has been trading for less than 3 years
- You are 18 or older
- You have the right to work in the UK
- You are starting a new business or your business has been trading for less than 3 years
You cannot apply for a Start Up Loan if:
- Your business is an excluded business type, for example you deal in weapons, gambling or pornography
- You intend to use the money to repay debt, training and education or investment opportunities unrelated to your business
- Your business is an excluded business type, for example you deal in weapons, gambling or pornography
- You intend to use the money to repay debt, training and education or investment opportunities unrelated to your business
Eligibility changes
From 6 April 2026 you will be able to apply for a Start Up Loan in your first 5 years of trading.
From 6 April 2026 you will be able to apply for a Start Up Loan in your first 5 years of trading.
Get ready to apply
When you apply you will have to go through a personal credit check.
You may be able to improve your credit rating by:
- making sure your details are on the electoral register
- checking and correcting any errors on your credit report
- reducing any debt you already have, like credit cards or overdrafts
- avoiding applying for other credit in the months before you apply for the loan
You will need proof of your identity, address and your right to work in the UK.
Your credit check is valid for 90 days. If it takes longer than 90 days to complete your application and finalise your documents, you will have to go through another credit check.
Prepare your supporting documents
When you apply you must provide:
- your business plan
- a 12-month cash flow forecast
- a personal budget showing how you manage your personal income and expenses
- 3 months of bank statements which match with what you’ve put in your budget
Start work on these before you apply.
Apply and get a decision
Once you apply, you will be matched with a business adviser who can help you refine your supporting documents.
Your business adviser reviews your application and decides whether to grant the loan. Their decision will be reviewed by a second person.
The outcome
If your application is successful, an approved lender will send the loan documents to you. You’ll need to sign and return these.
You have 30 days to appeal if you think the decision to refuse your application is wrong. Or you can wait 6 months and make a new application.
