Summary
Government-backed unsecured personal loan of between £500 to £25,000, available to individuals looking to start or grow a business in the UK.
Eligibility criteria
The King’s Trust will assess each loan application on behalf of Start Up Loans Company. Four areas are considered during assessment Eligibility, Purpose, Viability and Affordability.
Eligibility
Eligible applicants must
- be aged 18 or over
- be a current UK resident
- be starting a new business, or in the three years of Business Advance support from The Trust
- on the Enterprise programme
- be based in the UK and have the right to work in the UK
- have completed Review and Receipts for any Test My Business Idea grant(s).
- have a personal current account, and bank statements dated within the last three months
- be unable to secure finance from other sources (self-declaration is ok)
- have a business type and loan purpose eligible for the Start Up Loan
- pass the credit checks and be able to afford to repay the loan
Purpose
The money will be used
- in line with the purpose of the business
- to achieve the goals of the Business Plan
Viability
The business needs to have enough money to
- achieve the goals in the Business Plan and Cashflow Forecast
- pay its suppliers and running costs
- give an income that covers a Personal Survival Budget
- enable the individual to be financially independent
- meet monthly loan repayments
It will need to be demonstrated that there is a demand for the products or services and that enough money can be made to meet monthly loan repayments.
Affordability
By looking at the Business Plan, Cashflow Forecast, Personal Survival Budget and business viability, it will be assessed if
- the individual can afford regular loan repayments
- a grant would be more suitable for the business
Additional information
Individuals can apply to borrow between £500 to £25,000 with a fixed interest rate of 6% each year. The full amount plus interest will need to be paid within one to five years.
A King’s Trust contact will support each business to look at funding needs and assess how much they can afford to borrow.
In some cases, a combination of a loan and a grant may be recommended to cover start-up costs.
