What is a Start Up Loan?
Start Up Loans is a UK government-backed scheme by the British Business Bank, providing affordable funding to new businesses.
Borrow between £500 - £25,000 per co-founder (up to 4 co-founders)
Fixed interest rate of 6% per year
No arrangement or early repayment fees
Free post-loan support
Government-backed
Unsecured personal loan for business purposes
Who is eligible?
To qualify for a Start Up Loan, you must:
Be 18+ years old and a UK resident
Have a business idea or trade for under 36 months in the UK
Hold the right to work in the UK
Declare no access to other funds
Meet eligible business type and loan purpose criteria
Pass a basic credit check
Not sure if you are eligible?
How to apply?
Applying for a Start Up Loan is straightforward.
After you submit your application, you will be paired with a free Business Advisor who will assist you in preparing documents like your business plan and cashflow forecast.
As an official partner of the British Business Bank's Start Up Loans scheme, First Enterprise delivers these loans across the East Midlands, South East Midlands, and West Midlands to help entrepreneurs access finance despite limited trading history.
1
Start your application with First Enterprise
Once you know you’re eligible, simply fill out the application form on our website below.
1
2
Continue application with the British Business Bank
You will then be redirected to create an account with the British Business Bank and provide some initial information. A credit check will be run at this point.
3
Apply online
Continue your application on the British Business Bank website. Provide documents and further details as requested.
4
Work with a dedicated Business Advisor
You'll be assigned a dedicated Business Advisor from First Enterprise who will work with you on your application and get it ready for assessment.
5
Submit your application
Once all the requirement documentation is in place, submit the completed application and await a response. Additional information may be requested.
6
Get funded!
If successful, you'll be able to receive the funds. The total time from start to this step is typically between 3 and 8 weeks.
Hear from start-ups we’ve funded
The loan has enabled us to build a state-of-the-art mobile operations unit, enhancing our service offerings and allowing us to reach more clients efficiently. My Business Advisor was instrumental in helping us optimise our fund allocation.
Sean Johns
Founder
Imajin
My experience with First Enterprise and my assigned Business Advisor exceeded expectations. From insightful email correspondence to engaging conversations, I felt genuinely supported and guided every step of the way.
Rosie Elvin
Founder
ADHD Focus
First Enterprise and our assigned Business Advisor provided invaluable support and guidance, helping us secure funding and refine our business strategy. Their understanding and encouragement have been vital to our growth.
Callum Cooke
Founder
Kondor Kidz
At times it was challenging but our Advisor from First Enterprise was always on hand to ease the way forward. He took us through the step-by-step process of achieving our loan throughout with patience and kind consideration.
John/Katie Houghton
Co-Founders
The Grange
The loan has really helped me kick start the promotion of my work to a wider audience. The team at First Enterprise has been great to work with, being thorough in their approach and offering some very useful advice along the way.
Nicholas Munn
Founder
Black Pear Bespoke
The funding support from First Enterprise will look to build significant awareness of our brand and the overall importance of estate planning. It will also help to create initiatives to educate potential clients and partners.
Gary Tonsley
Founder
Westwood Estate Planning
Start Up Loans Application
Frequently asked questions
Getting financial support can be challenging, so we’ve provided clear answers to common questions to guide your decisions.
To qualify for a Start Up Loan, you must be at least 18 years old, a UK resident, have a business idea or be trading for less than 36 months in the UK, hold the right to work in the UK, and not be able to access cheaper funding elsewhere.
Start Up Loans can be used for various startup purposes, including purchasing equipment or stock, hiring staff, renting a premises, marketing campaigns, and any other essentials you might need to get going. They can also be used for working capital if you have already started trading.
Loans cannot be used for the purchase training qualifications, refinancing existing debts, or any purposes that do not demonstrate business viability and the capacity to repay the loan.
Businesses that are ineligible include those involved in illegal activities, the manufacture or sale of illegal drugs or drug paraphernalia, weapons, ammunition, or replica weapons, pornography or ventures of an overt sexual nature, finance and lending, investment, community funding, claims and debt collection, trading-related services, charities and voluntary institutions, religious or political organisations, trade unions, residential property development and refurbishment, residential properties used for onward letting, subletting, or letting spare rooms, education institutions, and businesses benefiting from gambling activities. Some exceptions apply, such as businesses using hemp or Cannabidiol (CBD) that meet UK regulations, legal recreational activities involving weaponry, and historic residential properties now classified as commercial properties like Bed & Breakfast businesses.
Start Up Loans are personal unsecured loans, meaning they do not require security against your family home or any other assets.
Yes, applications from applicants with less-than-perfect credit histories are considered. The focus is on the overall viability and potential of your business rather than just the credit score. A credit search will be competed upon your initial application to determine the detail required in underwriting.
You can borrow between £500 and £25,000 per director (up to 4 directors) with a fixed interest rate of 6% per year. The loan can be repaid over 1-5 years, and there are no arrangement or early repayment fees.
After you complete the basic contact details form on this page, you will be redirected to the Start Up Loan portal to complete your full application.
After submitting your application, you will be paired with a Business Advisor who will assist you in preparing documents like your business plan and cashflow forecast. Your Business Advisor will explain the loan application process in detail, coach you on what documents and information you need to submit, assist you in developing thorough business plans and financial forecasts, and provide personalized support every step of the way.
If your application is declined, you will be advised of the decline by email. If you wish to appeal this decision it is possible to appeal directly though First Enterprise, or through the Start Up Loan website.
First Enterprise is an official Business Support Partner for the British Business Bank’s Start Up Loan Scheme. The British Business Bank provides the funding for the Start Up Loans, and First Enterprise delivers the support with applications.