Start-up loans scheme

An £82m loan scheme for young people wanting to create a business is being launched by PM David Cameron.

People aged between 18 and 24 can apply for funds, expected to typically be about £2,500, from StartUp Loans.

Mr Cameron said he hopes the initiative could lead to 30,000 more start-ups and give a boost to economic growth.

The loans must be repaid within five years, and interest will be charged at the level of the Retail Prices Index plus 3%.

Mr Cameron said he wanted young people to have the confidence and support to turn "that spark of an idea into the next global brand".

It comes as an enterprise review says the UK would have 900,000 more businesses if it had the same rate of entrepreneurship as the US.

The review, by former Conservative minister Lord Young of Graffham, said that "many don't realise the opportunities that enterprise offers".

The StartUp Loans scheme will be chaired by entrepreneur and Dragons' Den participant James Caan, and administered by groups who already work with young people.

Mr Caan said the initiative "provides guidance, access to expertise and finance. These are the three vital ingredients for starting your own business.

"Armed with all of these, young people are already on the way to shaping their own future."