Cameron announces £30m to expand Start Up loans scheme

THE Government is pumping an additional £30m into a scheme to help young people get started in business.

Prime Minister David Cameron, who is due to speak at an event for young entrepreneurs in the region later, says the £30m boost to the Government’s Start-Up Loans will increase the total pot for Start-Up loans to over £110m over the next three years.

Mr Cameron  also announced that due to demand from those who had just missed out on the scheme, and difficulty of securing loans to start a business, the age limit for application will now be extended from 24 to 30 years old.

More than 3,000 people have applied or registered an interest in a Start-Up loan; as well as a low interest loan of aound £2,500, budding entrepreneurs receive support and mentoring to develop their ideas.

In the three months that the scheme has been live over £1.5m worth of loans have been approved, helping over 460 new businesses get off the ground.

So far the lion’s share of the loans have been made in London (34%) and the South East (19%), with 9% in the North West.

Announcing the additional funding Mr Cameron said: ““Start-Up loans are an important part of my mission to back aspiration, and all those young people who want to work hard and get on in life, so this country competes and thrives in the global race

 “They are a great way to help this next generation of entrepreneurs get the financial help – and the confidence – to turn that spark of an idea, into a growing, thriving business.

“It is by backing our entrepreneurs and championing small business that we can drive forward and grow the economy, and equip this country for the highly competitive era we are in.”

James Caan, vhair of the Start-Up Loans Company added: “There has been a major shift in the way business is viewed by the public, and entrepreneurs are now seen as creative and exciting role models; and I am delighted to see that more and more young people are now looking to set up their own business.”

Mr Cameron said the extra £30m would be delivered in two tranches with £10m in 2013/14, and £20m in 2014/15.

In the North West the loans are administered by Manchester-based Business Finance Solutions.

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