You’re young, energetic, ambitious, and have a great idea for a business of your own. The only problem is: where do you find the money to fund the startup which could make you a successful entrepreneur?
The good news is that the government has earmarked £117.5 million to help people like you. Launched two years ago, the Startup Loans Scheme has now been approached by over 10,000 under-30s anxious to take the first steps towards running their own businesses. Loans usually average £2,500 but can be as much as £4,500 - £5,000 in some circumstances although there have also been others as modest as £500.
And this year some £60 million will be available to young entrepreneurs who can convince the Start-up Loans Company, a private business founded and chaired by former Dragons’ Den star James Caan, that they are a good investment.
Anyone over 18 can apply to the scheme pledged to fund and mentor the next generation of entrepreneurs - successful applicants are assigned a *“delivery partner”* who helps them develop a business plan.
Current delivery partners include The Prince’s Trust, the School for Startups, Business Finance Solutions and the Community Finance Development Association. Partners provide young would-be entrepreneurs with mentoring to get the business started.
Successful applicants get a low-cost unsecured loan on a fixed rate of interest and repayable over five years. Capital repayment holidays can be made available but interest must be repaid each month. Startups which have been successfully funded include a product-design consultancy, a hair salon specialising in hair-loss problems and a specialist film company.
A typical success story is that of mother of two Alissa Koopal, 26, from Liverpool, who used her loan to help launch her company Izzy Melody, which produces eco-friendly baby products manufactured in the UK.
Izzy remembers: *“After making the difficult decision to take the plunge and make my business concept a reality my loan application was rejected by the bank and I didn’t think I would ever get the business off the ground.*
*“Within six days of applying for a Startup Loan I was granted the £2,500 I needed and was assigned a mentor who has provided me with vital guidance and support.”*
Looking back at the progress of the scheme, James Caan says: *“While we are well ahead with our target numbers I believe we are only scratching the surface – at the moment 40 young people a day are choosing to start their own business, thanks to Startup Loans.*
*“I am proud of what we have achieved thus far. We have built a fantastic team which is committed to the success of Startup Loans. As an entrepreneur myself who has built businesses I am very conscious that maintaining our own costs when we are spending money on behalf of the country is absolutely vital in the current economic environment.*
*“Startup loans are firing up thousands of young businesspeople. This is about unlocking the great entrepreneurial spirit we have in the UK.”*
So how do you apply for a Startup Loan? Just fill in an online application on the organisation’s website http://www.startuploans.co.uk/getting-started/apply-now. Or go to the Facebook page http:/www.facebook.com/StartUpLoansUK