Government pledges £5.5m top-up for start-up loans scheme
Boost comes as Start-Up Loans Company exhausts £10m fund set aside for pilot with 2,000 young entrepreneurs backed
The total sum available to young entrepreneurs through the Start-Up Loans scheme has been boosted to £117.5m following the government's pledge of a further £5.5m.
The funding boost follows the scheme's success at lending out its entire £10m pilot fund to entrepreneurs aged 18 to 30.
The additional support will be available to young entrepreneurs until the end of the month, before the Start-Up Loans Company launches the £42.5m first official round later this year.
Launched in September 2012 by the Start-Up Loans Company, chaired by former BBC Dragon James Caan, the Start-Up Loans Scheme is designed to provide young entrepreneurs with business support and funding until 2015.
Providing around £4,500 for each loan, the scheme has supported 2,000 young business owners so far, half of whom received loans in the last month.
Prime minister David Cameron commented: “Start-Up loans are now helping thousands of aspiring young entrepreneurs get the finance and support to strike out on their own and launch their own business.
“The success of this scheme shows that young people have got the ideas, the ambition and sheer commitment to get ahead – and it is by backing them, and backing their aspirations that we will be able to compete and thrive in the global race.”