Updates to the Start Up Loans Scheme from April 2026
- 4 days ago
- 3 min read
Updated: 3 days ago
If you’re thinking about applying for a Start Up Loan with First Enterprise, one of the British Business Bank’s official Start Up Loans delivery partners, there have been a couple of important updates you’ll want to be aware of.
From 6 April 2026, changes to the scheme came into effect around the interest rate and who can apply. The aim is to make sure Start Up Loans continue to support early‑stage businesses in a changing economic climate, while still offering a fair, fixed‑rate option designed for new and growing businesses.
Here’s a clear breakdown of what’s changed, and what it could mean for you.
What’s changed at a glance
From 6 April 2026:
Interest rate: The fixed interest rate for Start Up Loans is now 7.5%, up from 6%.
Eligibility: Businesses can now apply for a first Start Up Loan if they have been trading for up to 60 months (five years), increased from the previous 36‑month limit.
Why have these changes been made?
The updates help bring the scheme more in line with the wider lending market, while still keeping Start Up Loans focused on what they’re designed to do: support early‑stage businesses that may struggle to access finance elsewhere.
Just as importantly, the scheme continues to offer a fixed interest rate, so you know exactly what your repayments will be from day one.
A change to the fixed interest rate
When the Start Up Loans scheme launched back in 2012, the interest rate was set at 6%, and it stayed that way for more than a decade.
Since then, the economic landscape has changed significantly. Following a review, the fixed rate has now increased to 7.5%.
While this is an increase, the rate remains:
Fixed for the life of the loan
Clear and predictable, with no surprises along the way
Competitive, especially for early‑stage businesses
That certainty can make it easier to plan ahead and manage your cash flow with confidence.
Eligibility extended to businesses trading for up to five years
There’s also some positive news around who can apply.
Previously, businesses could only apply for a first Start Up Loan if they’d been trading for up to 36 months. From April 2026, that window has been extended to 60 months (five years).
This change reflects the reality that not every business needs funding right at the very start. Some businesses look for finance a little later on — for example, to:
Steady cash flow
Invest in growth
Take the next step after the early years
By extending the eligibility criteria, the scheme can now support a broader range of early‑stage businesses, offering more flexibility when funding is needed most.
Ongoing support every step of the way
While these updates bring the Start Up Loans scheme closer to the wider market, its purpose hasn’t changed.
It’s still about providing access to finance and support for businesses that may not find it easy to secure funding elsewhere.
At First Enterprise, you’re supported throughout the process. We’ll help you:
Understand whether you’re eligible
Talk through affordability in a clear, honest way
Decide whether a Start Up Loan is the right option for your business
Our role is to help you make an informed choice — not to rush you into one.
Want to learn more?
If you’d like a bit more detail around these changes, the Start Up Loans team has put together a set of frequently asked questions (FAQs).
These cover the updates in more depth and may help you decide whether a Start Up Loan is the right next step for your business.