What is the Start Up Loans scheme?

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What is the Start Up Loans scheme?

Sharif Yousefzai • 9 June 2023

What is the Start Up Loans scheme and how does it work?

The Start Up Loans Programme was launched in 2012 by the Start Up Loans Company, with the aim of promoting entrepreneurship in the UK and making it easier for new businesses to access financing. This government-backed personal loan is available to individuals who are eligible and allows for borrowing up to £25,000. The scheme includes a repayment plan set at a fixed interest rate of 6% per annum over a period of 1-5 years. Successful applicants benefit from 12 months of free business mentoring through the programme's network of Delivery Partners and access to Open University business courses.

What are the requirements to be eligible for the loan?

Applicants must be at least 18 years old, a resident of the UK with the right to work, and have a business based in the UK that has been trading for less than 2 years.

Additionally, applicants must demonstrate that they are unable to obtain financing from other sources and have passed a credit check, indicating their ability to repay the loan.

Also, for a business to be eligible for the loan scheme, its business activity must not be related to any of the following categories:

Weapons
Chemical manufacture
Drugs
Illegal activities
Banking & money transfer services.
Private investigators
Gambling and betting
Property investment
Charities

What are the benefits of the Start Up Loans scheme?

Opting for a government-backed loan to finance a business has numerous benefits. One of the major advantages is that the loans are "unsecured". This means it does not require any collateral or personal guarantee. Therefore, the risks associated are low.

Moreover, the interest rate and overall repayment terms are comparatively more favourable than other types of business loans. This scheme is very useful for individuals, especially directors of new limited companies to fund and help their company grow.

If you have any questions regarding this please do not hesitate to contact us.

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About Us

At 1st Class Accounts, we are a fully experienced team of accountants providing a full range of services for businesses of all sizes. We serve contractors, sole traders and limited companies nationwide. No matter what your accounting needs may be, we are ready to help. We strongly believe that our success is based on your success and we can genuinely say that we are committed to your financial well-being.

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Time to read: 2 minutes DS01 is a voluntary way to dissolve a limited company, this is sent to Companies House and once submitted can be struck off from the Register of Companies. For this application to be accepted the company must have met a certain criterion: up to or more than three months there should no trading, selling of property, changing the company name, or clearing all debts. How to file a DS01 Two of the most common ways an individual can file a DS01 is by completing a paper form or a form online . Filing a DS01 using a paper form A paper form can be found online. An individual would need to search for DS01 and click the hyperlink “Strike off a company from the register”. The relevant page will now show you information about a DS01. An individual can print off the form on this website and fill out the necessary information, such as the company's full name, directors’ signatures, and the company number. After the individual will carefully seal it in an envelope and send this off to HMRC. Once this has been accepted, the individual will receive confirmation of the DS01’s submission. Filing a DS01 using an online form An online form can easily be accessed the same way as a paper form. The individual will search for DS01 online and go onto “Strike off a company from the register”. On the page, scroll down to ‘close a company online’. This will take the individual to a starting page. The individual will put the relevant information such as the company’s registration number, and the companies' house authentication code. This is for HMRC to find the correct company to dissolve. It will then ask to confirm the director's name and if they wish to submit this form. At your service!