Business Secretary Vince Cable announced last week that the first Start-Up Loans have begun providing business support and loans to young entrepreneurs, with the first £82.5m of the fund being distributed this month.
Led by the newly-formed Start-Up Loans Company headed by businessman James Caan, Start-Up Loans will provide budding entrepreneurs between the ages of 18-24 with a range of support, including access to a business mentor and capital, in the region of £2,500, to help get their business idea moving.
So far, 1,200 young people have registered an interest in applying for a loan. The application process involves Start-Up Loans identifying the right loan provider, called a Delivery Partner, for the applicant.
The Delivery Partner then works with the budding entrepreneur to identify what stage they are at in their idea process and helps them present their business proposal in order for them to successfully get their loan.
If successful, the entrepreneur will receive the funding for the loan, which will be administered by the Delivery Partner directly. Mentoring will be provided with the loan, giving the applicant additional support and guidance as they go through the entrepreneur’s journey.
The scheme is open to all young people in the age bracket, who are employed, unemployed or in full-time education and the scheme is expected to demonstrate that there is demand from young people and capability within the support network to engage and support them.
Start-Up Loans will be supported with £10 million for a pilot scheme this financial year. A further £32.5 million in 2013/14 and £40 million in 2014/15 is being made available to grow the scheme.
Accountant, Jon Stocker, specialises in offering advice, support and guidance on matters involving personal tax planning, business decision-making and business start-ups.