The UK Government has announced an enhancement to the eligibility criteria of the Start Up Loans initiative. The £884 million scheme, delivered by the British Business Bank, is designed to help innovative new businesses launch across the UK.

It now includes start-ups that have been trading for up to three years and second loans are now available to eligible businesses that have been trading for up to five years. The programme previously provided finance to start-ups which had been trading for up to two years.

The scheme has already delivered more than 97,000 loans worth £900 million to new business owners across the UK since 2012.

Start-up loans provide funding at a fixed interest rate of six per cent, as well as 12 months’ mentoring to its recipients, further supporting aspiring business owners. The impact of the scheme has been particularly noticeable among individuals who might find it difficult to secure loans from traditional lenders.

See: Start Up Loans – small businesses can borrow up to £25,000