From 6 April 2026 the British Business Bank's government-backed Start Up Loans scheme raised its fixed interest rate to 7.5% (up from the 6% set at launch in 2012). Eligibility was also widened from businesses trading up to 3 years to up to 5 years (60 months), with unsecured loans of up to £25,000 per founder still available.
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UK Start Up Loans: rate rises to 7.5%, eligibility extended to 5 years trading
Why this matters for founders
Founders now up to five years into trading can apply (or take a second loan) for up to £25,000 of unsecured, no-personal-guarantee finance plus free mentoring — but factor in the new 7.5% rate, the first increase in over a decade.
Source: GM Business Growth Hub
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