UK pilot of start up loans

This week the government department for Business, Innovation and Skills (BIS) announced that Business Finance Solutions, part of the Business Growth Hub, has been selected to deliver the StartUp Loans for Young People Service in the North West.
The StartUp Loans service, the first of two pilots to be announced, will be delivered by Business Finance Solutions through the Business Growth Hub and key partners, working with young people across Greater Manchester and the wider North West. The purpose of the pilot scheme is to prove that there is demand for this product and evaluate which of the Delivery Partner models work best.

Prime Minister David Cameron said: “I want this to be the year where people can think yes, I can do it, that we can get as many viable businesses as possible off the ground, that people can have a go, and that we see a whole new wave of entrepreneurs who start small but think big.

“StartUp loans are a fantastic opportunity for young people, not only to get the financial support they need, but also to give them the confidence to believe they can do it, that they can turn that of an idea into the next global brand.”

The £82.5million scheme will give the next generation of entrepreneurs the finance and support to potentially start over 30 thousand new businesses, in a move to boost enterprise and economic growth. Any young people aged 18–24 accessing the StartUp Loans can expect to receive expert and personal support to help develop a business plan and access training. Where the business plan is robust and approved, they will be able to access financial support in the form of a loan typically in the order of £2,500 with a repayment period of up to five years.

Business Finance Solutions (BFS) was announced as the partner at the official launch of the service, which took place on Monday 28th May with Lord Young and entrepreneur James Caan. Lord Young previously launched the £10m earmarked for up to 10 Pilot areas with an additional £32m next year and £40m the following year.

Paul Breen of Business Finance Solutions said: “We are very pleased to have been successful given the highly competitive nature of the bidding process and the very clear fit of this product with the Business Finance Strategy in Greater Manchester and the range of business finance products we are developing through the Business Growth Hub.

“These loans give young people an incredible opportunity to start their own business, access government and private sector support, transform their enterprise potential and become a key driver of business growth in the region.”

The UK Startup Loans is a major new addition to the Business Growth Hub’s range of business finance products, which include; Access to Finance, Small Loans for Business, the Manchester Loan Fund and North West Business Angels. All of these products will be showcased at the Financing Business Growth Event on the 3 July, at the Bridgewater Hall in Manchester. The Growth Hub also provides access to wider business support through the Manufacturing Advisory Service (MAS), UKTI’s international trade programme, Investors in People, ENWORKS, mentoring and manufacturing Apprenticeships programmes.