Start Up Loans UK are government-backed personal loans for people who want to start or grow a new business in the UK, including start-up support for women, and can be used to purchase essentials like the basic PPE your company needs. Since the scheme launched in 2012, the Start Up Loans Company, part of the British Business Bank, has provided more than 100,000 loans worth over £1 billion (British Business Bank, 2024). You can apply if you are aged 18 or over; there is no upper age limit, and the scheme is open across England, Scotland, Wales and Northern Ireland.
What Start Up Loans UK offer
Start Up Loans are fixed-rate, unsecured personal loans of between £500 and £25,000. The interest rate is 6% per annum, fixed for the full term of the loan, and you can repay over one to five years. There are no application fees and no early repayment charges, so you will not be penalised if the business grows faster than expected and you want to clear the debt early.
Loan sizes vary widely depending on the business plan. While the maximum is £25,000, the average loan is around £10,000 (Start Up Loans Company, 2024). The money can be used for most start-up costs, such as equipment, stock, marketing, a website or working capital, but it cannot be used to repay existing debts or to fund training that is not directly linked to the business.
Every successful applicant also receives free support. A local delivery partner will help you get your business plan and cash-flow forecast into shape, and you will be offered up to 12 months of free mentoring once the loan is approved. You may also be able to arrange a capital repayment holiday, usually paying interest only for an agreed period, while you build up trading income. For women founders who may have limited access to traditional business networks, this mentoring can be a valuable way to build confidence and connections.
- Loans from £500 to £25,000 at a fixed 6% interest rate.
- Repayment terms of one to five years with no early repayment charges.
- Free business planning support and up to 12 months mentoring.
- Optional capital repayment holiday while the business gets going.
Who is eligible for a Start Up Loan
You can apply for a Start Up Loan if you meet the following criteria at the time of application:
- You are aged 18 or over.
- You live in the UK and have the legal right to work, be self-employed and remain in the UK for the full term of the loan.
- Your business is, or will be, based in the UK.
- Your business has been trading for less than 36 months, or you have not yet started trading.
- You have not already received a Start Up Loan for the same business.
Most business sectors are eligible, but some activities are excluded. These typically include banking, money transfer services, property investment, gambling and any business that is already in significant financial difficulty. The Start Up Loans website publishes the full list of excluded activities, so check the latest rules before you spend time on an application. The scheme is open to women at any career stage, including those returning to work after caring responsibilities or redundancy.
What else you need to know
- It is a personal loan. A Start Up Loan is an unsecured personal loan, not a business loan. You are personally liable for repayments, and missed payments or default can affect your personal credit record. The lender will not take a charge over business assets, but they can pursue you as an individual if repayments stop. This matters for women founders who may be relying on a single household income or who have limited personal savings to fall back on.
- Benefits and Universal Credit. Jobseeker’s Allowance has largely been replaced by Universal Credit. A Start Up Loan is not counted as income, but if the money sits in your bank account as savings it may reduce means-tested benefits once your balance exceeds £6,000. If you move into full-time self-employment, you must report the change to your work coach and may become subject to the minimum income floor after 12 months. Always speak to your work coach before applying.
- Other public funding. You cannot usually combine a Start Up Loan with certain other forms of government start-up funding for the same business. For example, the New Enterprise Allowance has closed to new applicants in Great Britain, but if you are receiving other public support you should ask your delivery partner whether it affects your eligibility.
- Delivery partners are independent. Applications are handled through a network of local delivery partners funded to support you. They can be a valuable source of advice, but it is still worth seeking independent guidance so you borrow only what your business genuinely needs.
Decide whether you need a Start Up Loan
As with any form of borrowing, the first question is whether your business actually needs the money. Many ventures can now be tested and launched with very little capital thanks to free or low-cost digital tools, social media and freelance marketplaces. Before you apply, go through every figure in your business plan and ask whether each cost could be reduced, deferred or done for free. Validating your idea with paying customers before taking on debt is usually the safer route.
If you are currently claiming Universal Credit, it may make sense to build the business in your spare time and establish a small order book before giving up the security of benefits. Once you take out a loan, you are committed to monthly repayments regardless of how much the business earns in the early months.
Make sure you also get advice from organisations that are not linked to the loan application. Free support is available through local Growth Hubs, enterprise agencies and independent business mentors. You can also explore business grants for women in the UK before deciding to borrow.
How to apply for a Start Up Loan
If you are confident that a Start Up Loan is right for your business, the application process starts online. You will need a business plan, a 12-month cash-flow forecast and a personal survival budget that shows how you will cover living costs while the business gets going. A delivery partner will review your application and may ask for more information before the loan is approved.
Women are a significant and growing group of Start Up Loans recipients. Since launch, around two in five loans have gone to women founders, according to British Business Bank data (2024). If you are a woman starting a business, the scheme can be a particularly accessible route to early-stage finance. Read our dedicated guide to Start Up Loans for women founders for more targeted advice.
For full details and to check the latest eligibility rules, visit the Start Up Loans Company website. You can also read our guide to business financing options for women in 2026 to compare Start Up Loans UK with other routes.
Practical next steps for women founders
- Check your eligibility on the Start Up Loans Company website before you prepare an application.
- Draft a business plan, 12-month cash-flow forecast and personal survival budget.
- Speak to your Universal Credit work coach if you are claiming benefits.
- Compare Start Up Loans with grants and other funding before you commit.
- Apply through a local delivery partner and use the free mentoring offer to build a sustainable business.
