Start Up Loans Eligibility 2025/26
Check your eligibility for the British Business Bank Start Up Loan — a government-backed personal loan of up to £25,000 per director at a fixed 6% interest rate, with repayment terms of 1-5 years and free mentoring support included. Available to businesses under 36 months old across England, Scotland, Wales and Northern Ireland.
Key Inputs
- Business trading start date (must be under 36 months)
- Business structure (sole trader, partnership, limited company)
- Number of directors/partners applying (each may borrow up to £25,000)
- Purpose of the loan (business use only)
- UK residency and age (must be 18+)
What You'll Get
- Eligibility status and any disqualifying factors
- Maximum loan amount available (up to £25,000 per applicant, up to £100,000 per business)
- Monthly repayment at 6% fixed over selected term (1-5 years)
- Total repayable including interest
Important Notes — 2025/26 Rates & Caveats
British Business Bank Start Up Loans 2025/26: fixed interest rate of 6% per annum; loan amounts £500-£25,000 per individual; maximum £100,000 per business across all directors; repayment terms 1-5 years; no arrangement fees; free mentoring and business plan support included. Eligibility: business under 36 months old; applicant aged 18+; UK resident; business based in UK; business use of funds. Not available to businesses in certain restricted sectors (gambling, firearms, etc.). Apply through a delivery partner — not directly to the British Business Bank.
Frequently Asked Questions
What is the interest rate on a Start Up Loan?
The fixed interest rate on a British Business Bank Start Up Loan is 6% per annum (APR). This rate is fixed for the full term of the loan and does not change. There are no arrangement fees, early repayment penalties or hidden charges. The 6% rate makes Start Up Loans significantly cheaper than most commercial unsecured business loans, which typically charge 8-20% depending on creditworthiness.
Can multiple directors each apply for a Start Up Loan?
Yes — each director or partner of the business can apply individually for up to £25,000, up to a maximum of £100,000 per business across all directors. Each applicant is assessed individually on their personal creditworthiness and business plan. The loans are personal loans, not business loans, so each director is personally responsible for repaying their individual loan regardless of the business outcome.
What mentoring support comes with a Start Up Loan?
All successful Start Up Loan recipients receive 12 months of free mentoring support from an approved mentor. Mentors are experienced business professionals who can help with business planning, financial management, marketing and operational challenges. The mentoring is delivered by the delivery partner organisation that processes the loan. This support is in addition to the finance and is designed to improve the chances of business survival.
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