The British Business Bank Start-up Loan is available for individual to apply and benefit from the loan. A Start Up Loan is a government-backed personal loan available to individuals looking to start or grow a business.
In addition to finance, successful applicants receive 12 months of free mentoring and exclusive business offers to help them succeed.
The loan is unsecured, so there’s no need to put forward any assets or guarantors to support an application.
Read, Apply – Apply for $250,000 Red Grants program
All owners or partners in a business can individually apply for up to £25,000 each, with a maximum of £100,000 available per business.
- Borrow £500 – £25,000
(The average loan amount is £7,200)
- Fixed interest rate of 6% p.a.
- 1 – 5 year loan repayment term
- Free application support
- Free post-loan support and mentoring
- Free templates & guides
- No application or set-up fees
British Business Bank Start-up Loan – Am I eligible?
If you’re starting a new business or have been trading for less than three years, then you’ve met the first criteria for securing a Start Up Loan. Check out the other criteria below to make sure you’re eligible before applying.
- You’re 18 years of age or older
- You’re starting a new business or have been trading for up to 36 months
- You’re unable to secure finance from other sources (self-declaration is ok)
- Your business is based in the UK
- You have the right to work in the UK
- Your business type and loan purpose is eligible under terms of the scheme
- You pass our credit checks and you can afford to repay the loan.
British Business Bank Start-up Loan – Excluded business types
Most business types are eligible to be funded with a Start Up Loan, however we are not able to support the following business types*:
- Weapons
- Chemical manufacture
- Pornography
- Drugs
- Illegal activities
- Banking & money transfer service, and other FCA regulated activities
- Private investigators that do not hold the appropriate licence
- Gambling and betting activities
- Property investment
- Agents for third parties, where a third party earns the majority of the revenue or you would only be earning a commission (not to be confused with franchise businesses which are eligible to apply)
- Charities (Community Interest Companies / Not for Profit and Social Enterprises with a sole community focus can be considered on a case by case basis)
Excluded loan purposes
Start Up Loans are designed to finance the initial costs of starting and developing a business, and therefore cannot be used to fund the following activities*:
- Debt repayment
- Training, qualifications or education programmes
- Investment opportunities that do not form part of an on-going sustainable business
Credit Check and Loan Assessment
British Business Bank Start-up Loan – During the application process, we will undertake a personal credit check with a Credit Reference Agency (CRA). We will also run a series of other checks with Fraud Prevention Agencies (FPAs) to validate both your personal information and bank account details. If you would like more information on how we use your information, please review our terms and conditions.
Our overall loan assessment will also take into account the strength and viability of your business, demonstrated through the Business Plan and Cash Flow Forecast and the affordability of the loan through the Personal Survival Budget you submit with your application.
Business partnerships
British Business Bank Start-up Loan – Where there is a business need, multiple business partners can individually apply for a Start Up Loan of up to £25,000. However, please note we can only lend a maximum of £100,000 to any one business. Each partner’s application will be assessed separately, and if successful, each individual will be personally liable for their loan.
Purchasing existing businesses
British Business Bank Start-up Loan – You are still eligible to apply for a Start Up Loan if you are purchasing an existing business, even if that business has been trading for more than three years under different ownership, provided you personally have not owned the business for more than three years.
Please note, you will be required to have sourced a copy of the financial accounts for the business along with your application. Furthermore, if the business was previously or is currently at a loss you will be expected to address this issue directly in your business plan.
Franchises
British Business Bank Start-up Loan – Provided you fit the criteria listed on this page, you can apply for a Start Up Loan to support your franchise business. You will be entitled to the same benefits including 12 months of free mentoring and exclusive business offers.
How to Apply
STEP 1
CHECK ELIGIBILITY & REGISTER
British Business Bank Start-up Loan – First, complete our initial eligibility check. If you are eligible, we will ask you to register, which will enable you to start your application with us. Scroll down to see our full eligibility criteria at the bottom of this page.
At this stage, all you’ll need to provide is basic details such as your name and contact details.
After registering you’ll receive an email asking you to create an account and password so you can login to our customer portal where you can start your application.
STEP 2
COMPLETE AN APPLICATION FORM
Stage 1: Provide information about your situation, how much you’re seeking and how you’ll use the loan.
Stage 2: A personal credit check will be run to further assess your eligibility in line with the Scheme’s commitment to responsible lending.
Stage 3: Upon passing the credit check, we ask you to submit a Business Plan, Cash Flow Forecast and Personal Survival Budget.
Upon passing the credit check, you’ll be assigned to one our Delivery Partners with a dedicated business advisor. There is a 90-day window for you to complete your application.
STEP 3
FINALISE BUSINESS DOCUMENTS
British Business Bank Start-up Loan – Your business adviser will review your business planning documents as well as any key supporting documents, and will work with you to get them ready for assessment.
Our assessment will take into account the strength and viability of your business, demonstrated through the Business Plan and Cash Flow Forecast and the affordability of the loan through the Personal Survival Budget.
If your application is successful, you will be invited to take up 12-months of free post-loan support.
Interested Persons should Click British Business Bank Loan Application.
