Service Update: Changes to Interest Rates and Expansion of Eligibility Criteria for Start Up Loans from 6 April 2026
From the 6th April 2026, the fixed interest rate for new applications for Start Up Loans is changing to 7.5%, and eligibility criteria is expanding to accommodate businesses that have been trading for up to 60 months
Let’s Do Business Finance, an Official Business Support Partner of the Start Up Loan Company and the British Business Bank, will be amending our terms and eligibility criteria in line with the Start Up Loan programme which covers the UK.
From the launch of the government-backed Start Up Loan programme in 2012, the scheme offered a fixed interest rate of 6% for finance facilities. Due to economic and market changes since launch, the product offering has been reviewed by the Start Up Loan Company and a new fixed interest rate of 7.5% will apply as of 6 April 2026.
The scheme remains a marketing leading solution of finance for new and small businesses across the UK, providing competitive lending in comparison to other more costly lending options for small businesses.
The new fixed interest rate of 7.5% will apply to new successful applications after 6 April 2026. This means if you started and completed a successful application before this date, your loan will be at a 6% interest rate.
If you successfully applied for a tranched Start Up Loan, and your first tranche was drawn at an interest rate of 6%, the second tranche of your loan will also be available at the fixed rate of 6%. However, if you applied for a new ‘Second’ Start Up Loan, up to the maximum £25,000 available through the scheme, after the 6 April 2026, your interest rate for your second loan will be available at the new interest rate of 7.5%, even if your first loan was at 6%.
Expanding eligibility criteria
In addition to changes to the fixed interest rate of the Start Up Loan programme, the eligibility criteria is expanding to support a broader range of early stage businesses in the UK by increasing to support businesses that have been trading up to 60 months (5 years), from the previous limit of 36 months (3 years). This expansion of the eligibility criteria will also take place from 6 April 2026, in line with the new fixed interest rate.
For the latest Start Up Loans Scheme terms and conditions, including interest rate and eligibility criteria, visit the Start Up Loans website
To find out how the new interest rate will affect you if you are applying after 6 April 2026, try the Interest Rate Calculator on the Start Up Loans website
