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Government Start Up Loans: £500, £25,000 personal loan at 7.5% fixed plus 12 months free mentoring

Government Start Up Loans: £500, £25,000 personal loan at 7.5% fixed plus 12 months free mentoring

Start Up Loans Now Charge 7.5% Interest

New loans have a fixed interest rate of 7.5%. Loans taken before 6 April 2026 retain the 6% rate. Eligible businesses must have been trading for less than five years, or 60 months. Loans range from £500 to £25,000, with a £100,000 cap per business. Terms range from 1 to 5 years, and 12 months of mentoring is included.

Why this matters for founders

For an early-stage UK founder with no assets to pledge, this is one of the few sources of unsecured, no-guarantor capital at a below-market fixed rate. Co-founders should note they can stack individual loans up to a £100,000 business ceiling, and the bundled 12 months of mentoring is worth taking even if the cash need is modest.

Source: GOV.UK — Apply for a Start Up Loan for your business

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