An £82.5m Start-Up Loan Scheme for young people wanting to create a business has been launched by PM David Cameron.
This is an initiative that we support at Horatio Investments and we are pleased the announcements today also recognise the importance of the advice and mentoring which needs to accompany the finance to give these new businesses the greatest chance of success.
The new Start-Up Loan Scheme will be offering loans of around £2,500 to young people aged between 18-24 who have a viable business plan. It must be re-paid within 5 years, and interest will be set at the Retail Price Index (RPI) plus 3% .
These loans will be administrated by private sector companies and charities such as the Prince’s Trust who have experience in helping young people start businesses.
The scheme will be chaired by entrepreneur and former ‘Dragon’ James Caan, alongside other board members, Duncan Cheatle founder of The Supper Club and Julie Meyer, founder of Ariadne Capital.
Applicants will receive advice and guidance, with the most promising going on to receive formal mentoring and training, including help with developing their business plan.
Mr Cameron said he hopes the initiative could lead to 30,000 more start-ups and give a boost to economic growth.
“I want this to be the year where people can think ‘yes, I can do it’; that we can get as many viable businesses as possible off the ground, that people can have a go and that we see a whole new wave of entrepreneurs who start small but think big,” said Cameron.
Whilst the loans of around £2,500 on average are a great start we know that high growth businesses will often need more money and further mentoring and advice to realise their full potential. We welcome applications from businesses who think they may benefit from the service, support and finance Horatio is able to offer.
Image All rights reserved by Tim Trott