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Last year the government launched an £82.5 million ‘Start-Up Loans' scheme in England and Northern Ireland which offers low interest finance and mentoring to young entrepreneurs (aged 18 - 30).
The motives behind the scheme were to help get more businesses off the ground and tackle youth unemployment. So far the scheme has helped almost 8,000 entrepreneurs with average loans of around £5,400. The maximum repayment terms are five years at an interest rate set by the Retail Price Index plus 3%, and all repayments, plus the interest, will be channelled back into the funding pot to help others.
This scheme runs alongside the New Enterprise Allowance, which provides funding and mentoring to unemployed people who wish to start a business. It is reported that the NEA has created around 26,000 businesses to date.
The government recently announced that the Start-Up scheme is to be extended to Wales with an additional £34 million of funding. David Cameron said: "I am determined to do all I can to support the British economy and that includes helping small businesses and budding entrepreneurs to get on... In the last two years we have helped tens of thousands of people turn their ideas into a viable business, and this additional support will help thousands more... My message is simple: if you have the drive, determinations and are prepared to work hard, we will back you". This should provide a real boost to the Welsh economy
The body which oversees the scheme was set up by James Caan, formerly of Dragons' Den, and more information can be found here: http://www.startuploans.co.uk/
The loans are administered by a handful of delivery partners who have experience in the area, such as the Prince's Trust.
If you need any advice about starting up a business please contact a member of the FBC team who will be more than happy to help.
Suzanne Hoare, Solicitor, Clarkslegal LLP
Tel: 0118 939 5764