Who is Eligible for a Start Up Loan in the UK?
Launching a business is exciting, but one of the biggest challenges new entrepreneurs face is securing affordable finance. That’s why the government-backed Start Up Loan scheme exists – to give people across the UK the funding and support they need to bring their ideas to life.
At Let’s Do Business Finance, we’re proud to be a trusted South East Region Business Support Partner for Start Up Loans, helping entrepreneurs access up to £25,000 in funding along with free mentoring and expert support. But before you apply, it’s important to understand if you meet the eligibility criteria.
What is a Start Up Loan?
A Start Up Loan UK is a personal, unsecured loan designed for people starting a new business or running one that has been trading for less than three years.
Key features include:
Borrow £500 to £25,000 per person
Fixed 6% annual interest rate
No application, setup, or early repayment fees
12 months of free business mentoring included
It’s not just finance – it’s a complete support package for new business owners.
Eligibility Criteria for a UK Start Up Loan - What do you need to apply for a Start Up Loan?
1. Age & Residency
✔ You must be at least 18 years old
✔ You must be a UK resident with the right to live and work in the country for the duration of the loan
2. Business Stage & Location
✔ Your business must be new or trading for under 36 months
✔ It must be based in the UK
✔ If you’re buying an existing business, you may still be eligible, as long as you haven’t owned or traded under it for more than three years
3. Access to Other Finance
✔ Applicants must confirm they are unlikely to secure funding from traditional lenders
4. Credit & Financial Standing
✔ You’ll need to pass a personal credit check
✘ You cannot apply if you are bankrupt, in an IVA (Individual Voluntary Arrangement), or under a Debt Relief Order (DRO)
5. Business Sector Eligibility
Some sectors are excluded from the Start Up Loan scheme, including*:
Gambling and betting businesses
Weapons or chemical manufacturing
Adult entertainment
Property investment companies
Banking and regulated financial services
Charities (although social enterprises and CICs may be considered)
*other exclusions may apply and will be confirmed when you apply.
Additional Things to Know About Start Up Loans
Personal liability: The loan is personal, not tied to the business
Limited Companies and Partnerships welcome: Each Partner or Director can apply individually (up to £25,000 each, maximum £100,000 per business) which they use to invest in their business
No need to register before applying: Your business doesn’t need to be registered with HMRC or Companies House before you apply, but it must ultimately operate as a UK-registered entity
Why Apply Through Let’s Do Business Finance?
As an official Start Up Loans Business Support Partner, we provide more than just funding:
✔ Free step-by-step support with your application
✔ Access to experienced business advisers
✔ 12 months of free mentoring to help your business succeed
✔ A proven track record of helping UK entrepreneurs secure small business funding
✔ Delivered the scheme since its inception back in 2012
✔ We are the Official South East Region Business Support Partners
Ready to Start Your Business Journey?
If you’re looking for finance for a new business in the UK, a Start Up Loan could be the solution. With clear terms, affordable repayments, and mentoring support, it’s one of the best ways to kickstart your venture.
Check your eligibility and apply today with Let’s Do Business Finance, by visiting our Start Up Loan Application Process page.