Interest is now 7.5% fixed for new loans (loans taken before 6 April 2026 keep 6%), and eligibility is businesses trading under five years (60 months), not under three years. £500–£25,000, £100k/business cap, 1–5yr term and 12 months mentoring remain correct.
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Government Start Up Loans: £500–£25,000 personal loan at 6% fixed plus 12 months free mentoring
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
#small-business-loan#startup-loan#unsecured-loan#government-loan#mentoring#fundraising#finance#getting-started
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